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Vietnam is quickly becoming one of developing Asia’s more dynamic telecommunications markets and the lure of double-digit subscriber and revenue growth has already enticed investors from South Korea and Hong Kong into the nation’s burgeoning wireless market. While gains made in the wireless sector are noteworthy, the country’s Internet sector has also posted impressive gains by growing nearly 260 percent over the past two years. Pyramid Research believes that while significant progress has been made to bring the country online, both efficient regulation and investment in new technologies will be required to bring Vietnam up to par with its neighboring countries.
Vietnam Internet Market Is Poised for Further Growth…
Vietnam’s Internet sector experienced phenomenal growth over the past two years—the total number of accounts has risen from 890,000 at the end of 2003 to nearly three million accounts at the end of 2005. Vietnam’s telecommunications regulator, the Ministry of Posts and Telematics, is optimistic that the sector will continue to grow at 100 percent per year for the next five years. Pyramid Research is also optimistic about the sector’s growth prospects; we believe that total revenues from Internet service totaled US$275m in 2005 and should grow to over US$768m by YE2010.
Uncharacteristic of most emerging markets, Vietnam has a relatively competitive Internet sector. Incumbent VietnamPosts and Telecommunications Corporation (VNPT) held less than 50 percent of the market at the end of 2005, although it enjoys a healthy lead in the ADSL space. ISP FPT is in second place with 26 percent, while military-run Viettel is third in line with 18 percent. As the latter continues to roll out fixed services, Pyramid Research expects Viettel’s share to increase significantly. Recently, the Vietnamese government authorized two cable TV providers, Saigon Tourist Cable Television and Hanoi Cable Television, to offer cable modem service, which will provide a competitive boost to the Internet market.
To read about barriers facing Internet adoption in Vietnam and how new technologies and market-friendly policy will help overcome them, purchase the complete article in our online store.
Related Resources:
Vietnam Fixed Forecast
Vietnam Country Outlook
If you have any questions or would like to learn more about our Vietnam coverage, please email info@pyr.com.
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