Vietnamese military-run telecom operator Viettel reports impressive uptake figures since launching its 5G mobile network in mid-October 2024. Within two weeks, the firm attracted 3 million 5G users, reaching 4 million in late December.
While 5G has been available in many Asian markets for some time, users in Vietnam were forced to wait for their first taste of the new technology.
The country’s three largest mobile network operators (MNOs) were awarded 5G-suitable spectrum in the first half of last year. Since 2020, each has conducted wide-ranging commercial tests of the next-generation technology.
In March 2024, Viettel was the first to be awarded a 2500MHz-2600MHz spectrum license, with plans to deploy the technology “as soon as possible.” Later that month, VNPT-VinaPhone won a license for 3700MHz-3800MHz spectrum. MobiFone followed with a 3800MHz-3900MHz license in July.
In September, Nokia of Finland announced a “major” agreement with Viettel to roll out 5G equipment and modernize 4G infrastructure.
The project covers 22 provinces across the country. It uses Nokia’s 5G AirScale portfolio of solutions, which includes Nokia’s next-generation AirScale baseband solutions, Massive MIMO radios, and Remote Radio Head products. According to Nokia, the equipment was manufactured locally.
By the network launch on October 15, Viettel claimed to have installed more than 6,500 5G base transceiver stations, covering all 63 provincial capitals, industrial zones, tourist sites, ports, airports, hospitals, and universities.
Viettel’s 5G network boasts download rates between 700 Mbps and 1 Gbps, about ten times faster than 4G, with near-zero latency.
The firm’s 5G network boasts download rates between 700 Mbps and 1 Gbps, about ten times faster than 4G, with near-zero latency. It offers both non-standalone and standalone 5G architectures.
Viettel went on to launch 5G Open RAN infrastructure in November, with more than 300 sites scheduled for deployment by the end of Q1 2025.
On December 20, 2024, Viettel was joined in the 5G market by rival operator VNPT-VinaPhone, which is using its 3.7GHz-3.8GHz spectrum to offer download rates of up to 1.5 Gbps.
Like Viettel, VNPT VinaPhone is working with Nokia on its 5G rollout under a contract inked in October.
VNPT-VinaPhone is a wholly owned subsidiary of Vietnam Posts and Telecommunications Group (VNPT), itself owned by the Vietnamese government.
Alongside its two main competitors, the third 5G licensee, MobiFone, is also a state-owned enterprise. It is expected to launch 5G services in the first half of 2025.
In October 2024, MobiFone signed an MoU with Swedish vendor Ericsson to collaborate on establishing a 5G Innovation Hub at MobiFone’s premises in Vietnam. The Innovation Hub will be utilized to develop new 5G use cases in collaboration with partners in Vietnam and other parts of the globe.
In 2010, Vietnam's total number of mobile subscriptions exceeded 100 million, a milestone reached by just eight other countries worldwide at that time.
According to the Vietnam Telecommunications Authority, the number of subscriptions has fluctuated in recent years, following attempts by the authorities to crack down on SIM ownership to ensure all users are correctly registered.
Changing Fortunes
Vietnam’s Mobile Market
This led to a 10.8% contraction of the market in 2017. The subscription total rebounded by 13.4% the following year before dropping by an average of 2.0% in 2019-2021 as the global COVID-19 pandemic led to full lockdowns, which hindered mobile operators’ offline sales and marketing activities.
As COVID-19 restrictions eased, growth returned in 2022 before a renewed attempt to crack down on SIM ownership led to a 2.5% decline in subscriptions in 2023.
As of June 30, 2024, the market total stood at 124.64 million subscriptions. Population penetration remains high, skyrocketing from only 23% at the end of 2006 to over 100% just three years later. By mid-2024, it reached approximately 125%, although this is more or less in line with the regional average.
According to TeleGeography’s GlobalComms Database, Viettel, VNPT-VinaPhone, and MobiFone controlled 95.8% of the market in mid-2024. At this time, Viettel alone held well over half of total mobile subscriptions.
Viettel is a unit of Military Industry and Telecommunications Group, itself wholly owned by the Vietnamese government via the Ministry of Defense.