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Vietnam’s Communication Service Market Generated US$ 5.8 Billion in 2022

The Ministry of Information and Communications (MIC) has announced that the communication service market generated around VN 138,000 billion (US$ 5.8 billion) in 2022, an increase of 1.6% compared to 2021. Data showed that in 2022, the telecommunications industry paid roughly VN 48,000 billion (US$ 2 billion) to the state budget, and the industry saw an increase in state budget payment of 9.8% against 2021.

Profit after tax of the telecommunications industry is estimated at VN 44,500 billion (US$ 1.8 billion), up 3.8% compared to 2021. As of December 2022, the rate of mobile phone subscribers and smartphone users in Vietnam reached 75.8%. Moreover, Vietnam currently has 72.1 million internet users, of which the percentage of households using fibre optic cable is estimated at 74.5%, up 11% over the same period.

The number of fixed broadband subscribers as of December 2022 was estimated at 21.5 subscribers over 100 people, up 9.7% over the same period, nearly reaching the 2022 plan target of 22 subscribers per 100 people. Vietnam is currently ranked 10th in the world in terms of the percentage of applications deploying the new generation of Internet addresses Internet Protocol version 6 (IPv6), with the IPv6 usage rate on Vietnam’s Internet at 53%, exceeding 1% compared to its 2022 target. Furthermore, 52 out of 85 electronic portals and public services of ministries, sectors, and localities have converted IPv4 to IPv6, 2.5 times higher than in 2021.

Furthermore, in 2022, Vietnam’s e-commerce revenue grew by 15% compared to the year before, as OpenGov Asia reported. In 2021, revenue saw year-on-year growth of 16%, reaching US$ 13.7 billion. Experts had predicted Vietnam’s e-commerce market would see a rapid and stable growth rate at double digits during the 2016-25 period.

Although Vietnam’s economy was heavily impacted by the COVID-19 pandemic in 2020, its e-commerce revenue still grew by about 15% to US$ 13.2 billion, compared to 2019. The Vietnam E-commerce White Paper said that in 2021, Vietnam’s economic growth was only 2.58%, the lowest in the past 30 years. In that context, the country’s e-commerce revenue still maintained a growth rate of 6%.

Experts predict that Vietnam’s e-commerce value will reach US$ 39 billion by 2025. The total revenue of Vietnam’s Internet economy is forecast to reach US$ 57 billion by 2025. Vietnam has the second highest percentage of consumers shopping online in the region, after Singapore. The country’s B2C retail e-commerce revenue this year is estimated at US $16.4 billion.

With the sudden and significant change in online shopping habits in Vietnam, its e-commerce activities as well as trade promotion activities in the online environment continue to maintain rapid and sustainable development. Vietnam now has 70,000 digital technology firms, three years ahead of the target set for 2025. The number of digital enterprises in Vietnam increased from 45,600 in 2019 to 68,800 in September 2022.

MIC has developed a strategy for digital technology industry development to 2025 with a vision for 2030. In March 2022, the Ministry announced that 35 national digital platforms were serving digital transformation and the development of digital government, economy and society, including 21 developed by domestic digital technology enterprises. These have contributed to facilitating state management and public services. The industry has focused on upgrading digital infrastructure, smartphones, broadband Internet, and cloud computing.

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