The telecommunications industry is a key driver behind Vietnam’s digital transformation. Telecommunications and other sectors in the information and communications technology (ICT) sector generated up to 8.2 percent of Vietnam’s GDP in 2021. As the country moves to implement the fourth industrial revolution, the telecommunications industry will play a vital role in the process.
The Vietnam telecommunication market size was worth US$6.3 billion in value in 2021, with a CAGR forecast of approximately 1 percent for the 2021-2027 period. The industry is set to scale further up as the digital transformation of businesses coupled with the pandemic has boosted soaring demand for internet and telecommunication services.
In 2021, 71 million mobile broadband subscribers and nearly 19 million fixed band subscribers were recorded, up by 4 percent and 14.6 percent respectively year on year. Meanwhile, an increase of 20 percent in the proportion of businesses utilizing the Internet of Things (IoT) was also reported in 2021, reaching 88.67 percent.
The legal framework governing the telecommunications industry has been updated to promote the digital transformation of Vietnam. In January 2022, the Ministry of Information and Communications (MIC) updated Directive No.01/CT-BTTTT on the development strategy of the ICT industry, with specific goals for the telecom sector, for the 2022-2025 period.
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31 August 2022