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Facts About Vietnam’s Telecommunications Industry
 
  • One of the fastest growing economies in Southeast Asia – 7% to 8% annual growth
  • Vietnam is leading the ICT boom in the region
  • Vietnam’s ICT sector has been growing between 150% to 200% per annum since 2002 and contributes more than US$2 billion annually to the economy
  • ICT market set to continue to grow over the next 4 years – due mainly to large population base (82 million)
  • A BMI forecast pegs wireless growth to be around 90% in 2006.
  • Growth of 67.4% in mobile subscription in 2004 - 16.54 million telephone lines
  • In early 2005, the mobile market garnered more than 6 million new subscribers
  • Vietnam’s future in mobile services is likely to be in CDMA technology, with three of the major operators licensed to use CDMA.
  • Vietnam is on the lookout for regional collaborations. One success story: S-Fone - a collaboration between a Korean consortium, SLD Telecom, and Vietnam’s Saigon Postel. According the Vietnamese authorities, the new 2005 Enterprise law, which takes effect on July 2006, is one of major reforms taking place in Vietnam's legal system to simplify procedures and cut down expenditures for businesses and is expected to create a level playground for local private businesses, state-owned, and foreign-owned businesses.
  • The introduction of VoIP in 2006 saw a big shift in the market as the VoIP international call services were much cheaper then normal charges.
  • Teledensity Forecasts – 2005, 2010 and 2020
Year
Teledensity
Telephone households
2005
8%
> 30%
2010
12 – 15%
> 50%
2020
20 – 25%
> 75%
(Source: Paul Budde Communication based on industry data)
 
  • With a young and IT-savvy population, Vietnam has seen an 11% average annual growth in Internet usage with more to come
  • With 10.73 million internet users in 2006, online services are rapidly becoming sought after
  • Online gaming has great market potential with the Vietnam Software Association (VINASA) estimating that in 2009/2010, every new online game will result in US$1 million a year in Vietnam.
  • Broadband access and wireless technologies will play a crucial role in ensuring the accessibility of new data services.