Vietnam’s telecom service revenue to climb at 2.6% CAGR by 2029

This is due to growth in the mobile data and fixed broadband segments.

Vietnam’s total telecom services revenue is expected to rise at a compound annual growth rate (CAGR) of 2.6% from 2024 to 2029, according to GlobalData’s report.

This is led by growth in the mobile data and fixed broadband segments.

Mobile voice service revenue will decline during the forecast period due to the free bundling of voice minutes by MNOs into their mobile plans, rising user preference for OTT/internet communication services, and the subsequent decline in mobile voice ARPU levels.

Meanwhile, mobile data service revenue will continue to increase at a 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 5G services.

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.

5G subscriptions will increase at a faster pace over the forecast period, driven by growing demand for high-speed connectivity services in the country and improving availability of 5G services.

Fixed voice service revenue will increase marginally at a CAGR of 0.7%, mainly supported by the growth in VoIP subscriptions.

Fixed broadband service revenue will grow at a CAGR of 1.8% over the 2024 to 2029 period, driven by growth in the adoption of relatively higher ARPU-FTTH services.

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

Vietnam plans to expand fibre internet infrastructure to 80% of households and 100% of communities by the end of 2025.

“Viettel led the mobile services segment in terms of subscriptions in 2024 and will continue to hold the top position throughout the forecast period, as the operator has been at the forefront of 5G deployment and even launched the world’s first open RAN (ORAN) 5G network in November 2024,” said Srikanth Vaidya, telecom analyst at GlobalData.

“In the fixed broadband segment, VNPT will maintain its leadership through 2029, driven by its strong presence in the FTTH sector and multi-play bundling comprising fixed broadband, mobile, and TV services,” Vaidya added.