Vietnam’s telecoms sector saw total revenue of an estimated VND340 trillion (US$15.1 billion) in 2015, with total sector profits of VND56 trillion (US$2.5 billion). The sector contributed VND47 trillion (US$2.1 billion) to Vietnam’s state budget. However, overall subscription numbers declined to 122 million, 20 million lower than in 2014.
Viet Nam Posts and Telecommunications Group (VNPT), owner of VinaPhone, saw expected revenue of VND89 trillion (US$4 billion), a 7.5 increase from 2014. Profit of VNPT’s telecoms and IT sectors increased 21.7 percent from 2014 to reach VND3.1 trillion (US$136 million). By the end of the year, the majority of VNPT’s 33.7 million telephone subscribers were the 29.7 million VinaPhone subscribers, up 3.3 million from 2014.
MobiFone Going Alone
Rival MobiFone acquired 15 million new subscribers, a growth of 54 percent from 2014. Despite the large increase in subscriptions, the firm’s profit increased by only 1.1 percent to VND7.4 trillion (US$329 million).
MobiFone became an independent corporation following restructuring of VNPT in 2014-15 under Prime Minister Dung’s Decision 888/QD-TTg. During the process, VNPT also divested from Bao Minh Insurance Corporation, along with a commercial joint stock bank, four funds, four limited liability companies, and 53 joint stock companies. Three new corporations were established under the state-owned VNPT, being VNPT-Media, VNPT-Net, and VNPT-VinaPhone.
Meanwhile, Viettel Group added six million subscribers to its Viettel network, and Hanoi Telecom’s Vietnammobile reached an estimated 11 million subscriptions.
National Telecommunication Development Plan Until 2020
Vietnam is currently pursuing telecoms sector development under a national development plan. The plan targets mobile phone network coverage for 95% of the country’s population by 2020, and aims for 60% of the population to be internet users by that year.
The plan sets out telecommunications sector restructuring through mergers and acquisitions, aiming to form three to four large groups. State-owned enterprises are the key focus due to perceived inefficiencies in use of infrastructure and resources.
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