The total telecom services revenue in Vietnam is expected to increase at a compound annual growth rate (CAGR) of 4.7% during 2023-2028, led by growth in mobile data and fixed broadband segments, according to leading data and analytics company GlobalData.

GlobalData’s Vietnam Telecom Operators Country Intelligence Report reveals that the  mobile voice service revenue will decline during the forecast period, due to the steady decline in circuit-switched subscriptions and decline in mobile voice service ARPU, with users increasingly shifting to OTT communication platforms.

Mobile data service revenue, on the other hand, will continue to increase at a strong CAGR of 12% over the forecast period, driven by the continued growth in mobile internet subscriptions, especially increasing adoption of 4G services, projected rise in 5G subscriptions, and subsequent increase in mobile data ARPU.

Sarwat Zeeshan, Telecom Analyst at GlobalData, says: “4G services accounted for a majority share of the overall mobile subscriptions in 2023 in Vietnam and will remain the leading mobile technology through 2028 thanks to the continued expansion of 4G/LTE network in the country. However, 5G subscriptions will increase at a faster pace over the forecast period, driven by the growing availability and demand for high-speed connectivity services with telcos’ plans for 5G network rollouts and the government’s 5G coverage plans. For instance, the government plans to achieve nationwide 5G coverage by 2030.

In the fixed communication services segment, fixed voice service revenue will decline over the forecast period, due to losses in circuit-switched subscriptions and declining fixed voice ARPU. Fixed broadband service revenue, on the other hand, will grow at a CAGR of 2.7% over 2023-2028 period, driven by the steady growth in fiber broadband subscriptions, on the back of expanding fiber broadband network coverage.

Growing demand for higher-speed broadband connectivity and the expansion of fiber-optic network infrastructure by the government across the country will support fiber broadband subscriptions’ growth over the forecast period. The government of Vietnam plans to expand fiber internet infrastructure to 80% of households and 100% of communities by the end of 2025.

Zeeshan concludes: “Viettel led the mobile services segment, in terms of subscriptions in 2023 and will continue to hold the top position throughout the forecast period, thanks to its strong focus on LTE/4G/5G network expansions. Viettel aims for a nationwide 5G coverage by 2024. VNPT topped the fixed voice and fixed broadband segments. In the fixed broadband segment, VNPT will maintain its leadership through to 2028, supported by its strong position in the FTTH segment and focus on offering discounted multiplay bundles, combining fixed broadband, mobile, and pay-TV services.”