Dublin, Nov. 03, 2023 (GLOBE NEWSWIRE) -- The "Vietnam Telecoms Industry Report - 2023-2030" has been added to ResearchAndMarkets.com's offering.
The Vietnamese telecommunications industry is thriving, presenting significant opportunities for both local and foreign investors. Despite a competitive landscape, the economic outlook is positive, with an expected average GDP growth of 10% between 2023 and 2030. The market's strong mobile phone penetration and emerging fixed broadband adoption in households suggest sustained growth, even considering the aging population in the long run.
Key Developments:
- Mobile subscriptions are projected to continue increasing (+1.1%) from 2023 to 2030, accompanied by a rise in fixed broadband subscribers (+3.4%) and household penetration during the same period.
- While mobile subscription numbers are rising, mobile revenue is growing at an even faster rate due to the transition from 2G and 3G to 4G mobile data services.
- After a slowdown in 2018 and 2019 primarily due to pressure on legacy 2G voice and SMS revenue, the overall telecoms market is expected to grow until 2030 This is supported by mobile data growth offsetting the decline in 2G revenue.
- Investment in capital expenditure (Capex) remained stable, and this trend is expected to continue until 2030 with 5G Capex spending yet to be deployed while fixed broadband to FTTH is largely completed. Major telecom companies like Viettel, Vinaphone, and Mobifone are aligning their investments with revenue growth, maintaining a consistent Capex to Sales Ratio.
Mobile Market:
- In early 2020, the balance shifted, with 3G and 4G subscribers surpassing 2G mobile subscriptions for the first time. Mobile network operators are adapting to this change by shifting focus from traditional prepaid voice and SMS to data-centric services as the primary differentiator.
- Projected figures indicate that 5G mobile subscribers could reach around 66% of all connections by 2030, amounting to roughly 90 million subscribers. Meanwhile, 4G is expected to make up about 34% of total connections. The shutdown of 2G is scheduled for 2025, followed by a potential 3G shutdown by 2026 or earlier.
Broadband Market:
- The fixed broadband market is experiencing rapid growth driven by key players like VNPT, Viettel, and FPT, who are investing in full-fibre networks. This transition is promoting the migration to faster and more reliable broadband connections, with opportunities for services like IPTV and e-commerce.
- The expansion of households and new investments in fibre-optic technology by companies like VNPT, Viettel, and FPT will contribute to the growth of fixed-broadband subscribers.
Telecom Infrastructure and Investments:
- Infrastructure funds, pension funds, and government funds are placing high valuations on telecommunications infrastructure assets such as mobile towers, data centers, submarine cables, and fibre networks.
- The report highlights real-world examples of how investors perceive and assess these investments, including industry benchmarks and EV/EBITDA comparisons.
Market Dynamics and Consolidation:
- Despite the significant government influence, with three major players controlling over 90% of the market, corporate activity is limited. However, smaller operators like Gmobile, Hanoi Telecom, Saigon Post Tel, and SCTV could potentially merge or consolidate due to intensified competition.
- As the Vietnamese market matures and competition increases, there is a likelihood of consolidation. In the medium term, the government might reduce its stake in VNPT and Mobifone by up to 50%, introducing private investments and enhancing transparency in the market.
5G and Future Transformations:
- The advent of 4G brought the Internet to our mobile devices, while 5G has the potential to revolutionize connectivity, enabling virtual experiences (augmented or virtual reality) and real-world applications (autonomous vehicles). However, the exact outcomes, business models, required investments and timelines of 5G's benefits remain uncertain.
The Vietnam Telecoms Industry Report, 2023-2030 includes a comprehensive review of the Vietnamese market dynamics, market sizing, market forecasts, analysis, insights, and key trends.
This report provides analyses of revenue and market forecasts as well as statistics of the Vietnam telecoms industry including market sizing, 5-year forecasts, market insights, key telecom trends, 5G, and digital infrastructure, and also features the following:
- Overall Telecommunications Market by Major Operators
- Telco Operators Profile, Revenue, and EBITDA Mix
- Mobile Subscribers & Revenue Market Overview and Forecasts
- Spectrum Holdings
- IoT Market Overview
- Broadband Subscribers & Revenue Market Overview and Forecasts
- Digital Infrastructure (Fibre, Telecom Towers, Data Centres, Submarine Cables)
- Telecom Tower Market Analysis and Forecast
- Thematics/Opportunities relating to 5G, M&A and e-Commerce
- Telco M&A Transaction Database
Company Profiles:
- CMC
- FPT
- Gmobile
- Hanoi Telecom
- Hutchison Asia Telecom
- Mobifone
- OCK
- Saigon Post
- Vietnamobile
- Viettel
- Vinaphone
- VNPT
For more information about this report visit https://www.researchandmarkets.com/r/tl5m0w
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