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In the face of evolving market dynamics, Vietnam’s mobile telecommunications sector is undergoing a transformative phase marked by changes in traditional revenue streams and the emergence of over-the-top (OTT) services. Minister of Information and Communications Nguyễn Mạnh Hùng underscored the industry’s low growth rates compared to the country’s GDP, emphasising the need for innovative strategies to propel network operators into a new era of sustainable growth.
Major players in the Vietnamese telecom landscape are strategically positioning themselves to address these challenges and drive digital transformation. Viettel, a military-owned telecommunications group, reported a commendable 5.4% year-on-year increase in consolidated revenue, maintaining a dominant market share of 56.5%. VNPT, on the other hand, demonstrated robust financial performance, achieving a remarkable 102.14% growth in total revenue.
In response to the changing landscape, a significant player in the industry is embarking on a comprehensive plan to upgrade and expand its Big Data systems. The corporation aims to leverage data-driven insights for reporting, processing, and analysis, fostering a more informed approach to business operations.
Additionally, the company is set to integrate artificial intelligence (AI) and generative AI technology into its products, services, and technology systems, showcasing a commitment to cutting-edge innovation.
Its push for digital transformation is not only limited to technology upgrades but extends to the deployment of 5G infrastructure. For instance, the company plans to broadcast at least 1,000 5G stations this year, positioning itself at the forefront of next-generation connectivity.
Minister Hùng highlighted the urgent need for network operators to identify new growth spaces, emphasising the decline of traditional services such as phone calls and SMS messaging.
The industry’s future, he noted, lies in creating innovative digital applications for various sectors – an initiative aligned with the ‘Make-in-Việt Nam’ approach. This approach encourages industry players to consider research and development activities as a means to drive digital innovation.
In the journey towards digitisation and establishing robust Make in Vietnam platforms, overcoming multifaceted hurdles becomes imperative, aligning with the challenges highlighted in the telecom sector’s push for innovation and sustainable growth.
The complexities inherent in the digital transformation landscape, ranging from economic considerations to technological intricacies and regulatory frameworks, demand strategic solutions and concerted efforts from various stakeholders.
The challenges are further accentuated by the dichotomy between foreign platforms and indigenous solutions, a hurdle the Vietnamese telecom industry navigates in its pursuit of sustainable growth. Similarly, enterprises grapple with the choice between globally established platforms, often robust but economically burdensome, and the more cost-effective, tailor-made Vietnam-based platforms.
This echoes the dilemma faced by telecom giants as they balance the adoption of cutting-edge technologies against the need for economic viability.
The quest for low-cost, tailor-made Vietnam-based platforms has gained prominence, mirroring commitment to upgrading big data systems and integrating AI technology. This aligns with the broader narrative of promoting and utilising cost-effective indigenous solutions, offering not only economic alternatives but also actively engaging domestic businesses in Vietnam’s digital transformation journey.
As the telecom sector shapes the future of telecommunications in Vietnam through initiatives like the Bharat 5G Portal, the parallels with the challenges and opportunities in the broader digital transformation landscape reinforce the significance of strategic adaptation, innovation, and collaboration to foster sustainable growth and technological advancement.
As Vietnam’s major telecom enterprises continue to optimise resources, embrace technological advancements, and explore new digital products, they are not only positioning themselves for sustainable growth but also actively contributing to the nation’s broader digital transformation agenda.
The journey toward a digitised future requires continuous adaptation, and these telecom giants are poised to play a pivotal role in shaping Vietnam’s technological landscape.
