Mobile data, fixed broadband to drive Vietnam's telecom service revenue

Expansion of digital and streaming services contribute to growth.

In Vietnam, where the target is to expand fibre internet infrastructure to 100% of communities by year-end, growth in the mobile data and fixed broadband segments is set to drive telecom services revenue in the medium term.

According to estimates by data and analytics firm GlobalData, Vietnam's telco services revenue between 2024 and 2029 is likely to see a compound annual growth rate (CAGR) of 2.6%. Mobile data and fixed broadband were cited as key contributors as take-up improves.

"Mobile data service revenue will continue to increase at a robust CAGR of 9.7% over the forecast period, driven by the rising mobile internet subscriptions, growing 4G subscriptions, and projected increase in adoption of higher ARPU-yielding (average revenue per user) 5G services," GlobalData said.

"The expansion of digital and video streaming services will encourage subscribers to sign up for premium data plans, which will in turn drive revenue growth."

It added: "Fixed broadband service revenue will grow at a CAGR of 1.8% over 2024-2029 period, driven by growth in the adoption of relatively higher ARPU-FTTH (fibre to the home) services.

"Growing demand for higher-speed broadband connectivity and the expansion of fibre-optic network infrastructure by the government across the country will support fibre broadband subscriptions' growth over the forecast period."

Meanwhile, it comes as no surprise that mobile voice service revenue is projected to decline as more and more users tend to favour internet communication services. As for the industry's fixed voice service revenue, the expectation is a marginal CAGR of 0.7% over the five-year span.