The fixed communications service revenue in Vietnam is projected to grow at a  compound annual growth rate (CAGR) of 1.9% from $1.9 billion in 2021 to $2.1 billion in 2027, primarily driven by a steady rise in fixed broadband service adoption, says GlobalData, a leading data and analytics company.

GlobalData’s Vietnam Fixed Communications Forecast (Q3 2022) reveals that the fixed voice service revenue in Vietnam is expected to decline at a CAGR of 1% between 2021 and 2027, owing to a continued decline in circuit-switched subscriptions and fixed voice average revenue per user (ARPU).

Fixed broadband service revenue, on the other hand, is expected to increase at a CAGR of 2.6% between 2021 and 2027, driven by a growth in the growing fiber-to-the-home/building (FTTH/B) subscriptions and government’s initiatives to expand fixed broadband network in the country.

Subba Reddy, Telecom Analyst at GlobalData, comments: “FTTH/B will remain as the dominant fixed broadband service segment in Vietnam over the forecast period, driven by a steady rise in demand for high-speed broadband connectivity and an expansion of the fiber optic network coverage in the country. Under the National Digital Transformation Programme, the Ministry of Communications aims to expand fibre-optic network coverage to 80% of homes and 100% of communities by 2025.”

Vietnam Posts and Telecommunications Group (VNPT) dominated the country’s fixed telecommunications market in 2021, followed by Viettel and FPT. VNPT will continue to lead the market through 2027, supported by its strong FTTH subscriber base.