Vietnam mobile market - high growth fuelled by privatisation

Vietnam mobile market - high growth fuelled by privatisation

The mobile market in Vietnam has grown exponentially in recent years. Penetration reached 17% in Q3 2006, up from only 4% in 2004, and the market is expected to continue to grow at the same high rate. In addition, up to 50% of each of the top three government-owned operators will float on the stock market and a number of investors are lining up to buy shares. Prices will continue to drop as competition intensifies, making mobile services more accessible and affordable, which will fuel growth.

Table of contents

Ovum view
Key messages

Market overview

Strong connections growth
WTO entry and privatisation
Regulation
3G licences are due to be awarded in 2007
Data services grow but slowly

Competitive landscape

MobiFone, Vinaphone and Viettel lead
Call charges are dropping as competition increases

Operator strategy

Vietnam Post and Telecommunications (VNPT)
S-Fone
Viettel
EVN Telecom
HT Mobile (Hutchison and Hanoi Telecom)

Table of figures

Figure 1 Vietnam: subscribers by operator and penetration
Figure 2 Fixed and mobile connections
Figure 3 Vietnamese national mobile operators
Figure 4 Operator market share