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Vietnam's telecom revenue to grow 4.7% CAGR by 2028
GlobalData projects 4G dominance in the country throughout this period.
The growing mobile data and fixed broadband segments in Vietnam are expected to increase the country’s total telecom services revenue at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2028.
Analytics firm GlobalData revealed in its latest report that mobile data service revenue in Vietnam will continue to increase over the forecast period due to the continued growth in mobile internet subscriptions.
This growth, GlobalData said, is driven by the increasing adoption of 4G services, projected rise in 5G subscriptions, and subsequent increase in mobile data average revenue per user (ARPU).
Telecom Analyst Sarwat Zeeshan said 4G services dominated the overall mobile subscriptions in Vietnam throughout 2023, and is expected to remain the leading mobile technology in the region until at least 2028.
“However, 5G subscriptions will increase faster 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,” Zeeshan added.
Meanwhile, fixed voice service revenue will decline over the forecast period in the fixed communication services segment due to losses in circuit-switched subscriptions and declining fixed voice ARPU.
Fixed broadband service revenue, on the other hand, is projected to increase at a CAGR of 2.7% between 2023 and 2028 — propelled by the consistent rise in subscriptions to fibre broadband services, facilitated by the expanding coverage of fibre broadband networks.
GlobalData said that the increasing demand for high-speed broadband connectivity, and the government's initiative to extend fibre-optic network infrastructure nationwide will support the growth of fibre broadband subscriptions during the forecast period. The Vietnam government aims to enhance fibre internet infrastructure accessibility to 80% of households and 100% of communities by the end of 2025.
The report also showed that local service provider Viettel led the mobile services segment in terms of subscriptions in 2023 and will continue to hold the top position throughout the forecast period due to its strong focus on LTE/4G/5G network expansions.
In the fixed broadband segment, telco firm VNPT will maintain its leadership through 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.
