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BMI View: The Vietnamese mobile market has experienced strong growth in the past and the uptake of 3G
and fibre broadband has been robust in 2015, demonstrating the rising inclination towards both mobile and
fixed data usage. We continue to retain a positive view on the adoption of premium services and advanced
networks, although we believe that the governmental restrictions on 4G rollouts could restrict telecom
operators' abilities to satisfy growing data consumption needs, in the short term, at least. MobiFone is once
again in the spotlights with the government looking to sell 49% of the company. We believe that a good
foreign investor could inject a strong and positive impetus for renewed competition in the marketplace and
drive forward the uptake of 4G services in the coming years.
Latest Updates & Industry Developments
? We are forecasting 134.1mn mobile subscribers by end-2020, for a 136.6% penetration rate. Out of
this number, 55.9mn will be 3G/4G connections. However, we highlight the figure is distorted by
inactive prepaid subscriptions and multiple SIM ownership.
MobiFone's partial privatisation is once again dominating the Vietnamese telecommunications agenda
with Australia's Telstra and Norway's Telenor both interested in the operator. We hold a favourable
view of the foreign entrants looking to compete in Vietnam as it could provide new competition and drive
forward the uptake of advanced services and new technologies, especially with the country not yet having
officially rolled-out 4G services.
Viettel has installed approximately 200 LTE-enabled base transmission stations in the residential area of
Vung Tau City, Ba Ria City and Long Dien District after being granted permission by the government to
conduct 4G trials. Rising data consumption could increase subscribers' appetite for faster data
transmission speeds through 4G, and Viettel is keen to be the first operator to move into the area.