Viettel
Vietnam's fast growing telecoms business
Viettel Group is one of the world’s fastest-growing telecom operators with over 110 million subscribers and more than 70,000 employees. It has a presence in 13 countries in Asia, America and Africa. Besides telecoms, Viettel is also growing in specialist tech R&D, postal services, construction, retail, and more.
Viettel Group is a Vietnamese multinational telecommunications conglomerate that operates as both a telecommunications service provider and a defense industry enterprise.
It was established in 1989, as the Vietnam Post and Telecommunication Services (VNPT). In 2004, it underwent a transformation and was rebranded as Viettel Group, becoming a military-run enterprise.
Three decades later, Viettel has transformed itself from the leading telecommunications operator in Vietnam to an industrial and technological corporation reaching out to the world, with a promise of being a “caring innovator”.
These are the main business units:
- Telecommunications Services: Viettel is one of the leading telecommunications service providers in Vietnam. It offers a wide range of services, including mobile and fixed-line telephony, broadband internet, digital television, and other data services.
- International Operations: Viettel has expanded its operations internationally and operates in various countries across Asia, Africa, and Latin America. It provides telecommunications services in these regions, contributing to the economic development and connectivity of the countries it operates in.
- Infrastructure Development: Viettel has been involved in the development of telecommunications infrastructure, including the construction of fiber-optic networks, mobile towers, and data centers. This focus on infrastructure development is essential for expanding its service coverage and improving the quality of its offerings.
- Technology Development: As a part of its business strategy, Viettel has invested in technology development, including the deployment of advanced networks like 4G and 5G. This commitment to technological advancement allows the company to stay competitive in the rapidly evolving telecommunications industry.
- Defense Industry: Unique to Viettel is its dual role as a telecommunications company and a defense industry enterprise. It is operated by the Ministry of Defense of Vietnam, and part of its mission is to contribute to the country’s defense capabilities. This integration allows Viettel to leverage synergies between its telecommunications and defense activities.
Viettel’s strategy is built around
- Global Expansion: One of Viettel’s key strategies is global expansion. The company has entered various international markets, especially in developing countries, to provide telecommunications services and contribute to the development of communication infrastructure.
- Competitive Pricing and Value: Viettel often adopts a strategy of offering competitive pricing and value-added services to attract and retain customers. This approach is particularly relevant in markets where price sensitivity is high.
- Technological Innovation: Staying at the forefront of technological innovation is a crucial aspect of Viettel’s strategy. By investing in the latest telecommunications technologies, such as 5G, the company aims to provide cutting-edge services and maintain a competitive edge.
- Social Responsibility: Viettel places an emphasis on social responsibility, contributing to the economic development and connectivity of the regions it serves. This includes providing telecommunications services in remote and underserved areas, supporting education, and participating in community development projects.
- Integration of Defense and Telecommunications: The unique integration of defense and telecommunications allows Viettel to leverage resources and capabilities from both sectors. This integration can contribute to the company’s resilience and its ability to operate in challenging environments.
Latest update
Viettel continues to maintain its position as the largest enterprise in the industry.
In 2023, its telecommunications market share increased by 1.64%, maintaining a sustainable leadership position with 56.5%. The company also maintained its number one position in non-mobile services, including fixed broadband (FTTH) with a 43% market share and multi-platform television with 8.6 million subscribers, accounting for 31.2% of the market.
Viettel remains the network with the best service quality in Vietnam according to Umlaut’s assessment and ranks among the top 40 networks worldwide in terms of service quality. 5G services were successfully deployed with around 500 stations in all 63 provinces and cities, and a dedicated 5G mobile network was implemented in practice.
Viettel successfully transitioned 5.8 million 2G subscribers to 4G, surpassing the target by 109% and increasing the 4G subscriber base to 80%. Additionally, the company implemented AI technology to optimize the efficiency of blocking spam messages and calls.
During the year, Viettel also successfully conducted a pilot program for Mobile Money services with approximately 5 million users, with 73% of these users residing in rural, mountainous, remote, border, island areas, aligning with their intended direction.
Viettel launched several new digital platforms that delivered breakthrough results.
After 2 years since its launch, TV360 achieved 10 million regular users, making it the largest television service provider in Vietnam and expanding to international markets.
The Viettel Money digital financial ecosystem leads the rankings on Google Play and Apple Store in Vietnam with over 24 million users, holding a 32% market share in e-wallets and 60% in mobile money.
Leveraging AI technology, Viettel introduced new products including virtual legal assistants, virtual assistants for civil servants, chip-embedded chip verification services for the Ministry of Public Security, and data analysis platforms across 14 provinces nationwide.
In 2023, Viettel also deployed multiple large data center infrastructures in Hanoi and Ho Chi Minh City, contributing to the development of the largest cloud services ecosystem in the country.
Pioneering in the export of telecom and technology services
Viettel’s overseas revenue grew by 20.5%, maintaining high growth for seven consecutive years, surpassing the industry average worldwide by five times. Natcom excelled in Haiti, securing Viettel’s position as the number one telecom provider in six foreign markets, including Natcom in Haiti, Metfone in Cambodia, Unitel in Laos, Mytel in Myanmar, Telemor in East Timor, and Lumitel in Burundi.
Viettel expanded its information security business to four international markets, including Japan, Myanmar, East Timor, and Hong Kong.
The Viettel Digital Finance platform was exported to seven international markets, with some markets achieving high growth rates, such as Mozambique (450%), Laos (244%), Haiti (232%), East Timor (139%), and Burundi (91%).
The completed 5G Private network has export contracts to India, the most populous and technologically advanced country in the world.
Maintaining the position as the most comprehensive digital service provider
Viettel retains its status as the most comprehensive digital ecosystem provider, encompassing six platform areas: digital infrastructure, digital solutions, digital finance, digital content, cyber security, and high-tech production.
Viettel’s digital solutions and services hold the number one market share in healthcare, education, and provincial governance sectors. The digital healthcare ecosystem connects 30 million health records, the digital education solutions serve 4 million students, and the Intelligent Operations Center (IOC) operates in 35 provinces and municipalities.
Viettel remains the core force for ensuring network security and cyber security with a 58% SOC market share, asserting itself as the number one provider of ATTT services in Vietnam. Notably, Viettel’s team won the championship at the world’s largest cyber attack competition, Pwn2Own Toronto 2023.
Mastering 5G chip research and production
Viettel has successfully conducted research, production, and widespread testing of the 5G product ecosystem, both in hardware and software, placing Vietnam among the top five countries to master 5G technology. Viettel has announced the successful research of the 5G DFE chip, the most complex component of the 5G ecosystem, capable of performing up to 1,000 trillion calculations per second. This marks a breakthrough in Vietnam’s semiconductor industry. Test results have shown that Viettel’s 5G devices meet technical standards equivalent to those of many global providers.
Breakthrough growth in the logistics sector
Viettel Post achieved its highest growth rate in five years, with the core delivery sector growing by 31%, nearly four times the industry average growth. To explore new opportunities, Viettel Post has initiated the construction of a multi-modal transportation link connecting China, Vietnam, and ASEAN. The company also participated in the development of the latest smart border gate project in Vietnam.
Participating in the conference and hearing the report on Viettel’s 2023 results, Nguyen Manh Hung, Member of the Party Central Committee and Minister of Information and Communications, acknowledged that in the context of the industry’s common difficulties, Viettel’s 5.4% growth and 20.5% international telecommunications growth were impressive. Viettel has been highly successful in telecommunications and high-tech industry research and production. The Minister emphasized Viettel’s role: “Viettel must become a global technology conglomerate, actively participating in digital and green transformations. Viettel should create technologies and platforms for others to innovate and create products and services for society.”
Under the leadership of the Ministry of Information and Communications, Lieutenant General Tao Duc Thang, Chairman and CEO of the Group, has issued challenging tasks for each unit within the organization while reaffirming, “What we have achieved together in 2023 has added strength, a great source of motivation for Viettel to reach new heights in 2024.”
In 2024, Viettel aims to achieve a 7.2% increase in total group revenue, further improve foreign investment efficiency with a capital return rate of 84%, ensure 4G coverage equivalent to 2G, transition all 2G subscribers to 4G by September 2024, maintain the number one position in data center and cloud market share, expand the provision of cyber security services internationally, deploy extensive AI solutions, implement Digital Twins solutions for smart city management, officially announce the 5G device ecosystem produced by Viettel, expand the green energy product line, provide end-to-end solutions for cross-border logistics, and establish a cross-border railway transportation route between Vietnam and China.