Vietnam Telecom Infrastructure Market is increased due to investment in digital transformation with CAGR of 4.7% in 2029

The Vietnam Telecom Infrastructure Market is rising due to increased investment in digital transformation and expanding 5G network deployment during the forecast period 2025-2029F

According to TechSci Research report, “Vietnam Telecom Infrastructure Market - By Region, Competition, Forecast and Opportunities, 2019-2029F", Vietnam Telecom Infrastructure Market has valued at USD 1.7 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.7% through 2029F. 

Vietnam's telecom infrastructure market is being driven by rapid digital transformation, fueled by increasing internet penetration and the growing adoption of digital technologies across various sectors. As the Vietnamese economy continues to modernize, businesses are increasingly relying on digital platforms for communication, collaboration, and commerce. This digital shift is particularly evident in sectors such as e-commerce, finance, and entertainment, where online platforms are experiencing exponential growth. The COVID-19 pandemic has accelerated the pace of digital transformation, with remote work, online education, and e-commerce becoming essential components of everyday life. To meet the surging demand for digital services, telecom operators in Vietnam are investing heavily in expanding and upgrading their infrastructure, including fiber-optic networks, data centers, and mobile broadband services. These investments are essential to support the growing volume of data traffic and ensure seamless connectivity for businesses and consumers alike. Furthermore, government initiatives to promote digitalization, such as the National Digital Transformation Program, are providing further impetus to the development of robust and resilient telecom infrastructure in Vietnam.

One of the significant challenges facing Vietnam's telecom infrastructure market is the limited access to high-speed internet in rural and remote areas. While urban centers enjoy relatively robust telecom infrastructure and broadband connectivity, rural communities often lack access to reliable internet services. This digital divide hampers economic development, education, healthcare, and social inclusion in rural areas, exacerbating inequalities between urban and rural populations. The lack of adequate telecom infrastructure in rural areas is primarily due to the high costs and logistical challenges associated with extending networks to remote locations, where population densities are lower and terrain may be challenging. Additionally, limited purchasing power among rural residents may deter telecom operators from investing in infrastructure upgrades in these areas. Addressing this challenge requires concerted efforts from both the public and private sectors to expand broadband coverage in rural regions through targeted investments, innovative technologies, and public-private partnerships. Government-led initiatives, such as the National Broadband Plan, aim to bridge the digital divide by subsidizing infrastructure development and incentivizing private sector participation in underserved areas. Furthermore, deploying alternative connectivity solutions such as satellite internet, wireless broadband, and community networks can help extend high-speed internet access to remote communities, empowering them with the tools and opportunities for socio-economic development.

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Based on Type of Service Insights, The mobile service segment dominated the Vietnam Telecom Infrastructure Market and is expected to maintain its dominance during the forecast period. Mobile service infrastructure comprises networks, towers, antennas, and supporting technologies required to deliver wireless communication services to mobile devices such as smartphones, tablets, and IoT devices. This dominance can be attributed to several factors. Vietnam has experienced rapid mobile adoption and penetration rates, driven by the affordability and accessibility of mobile devices and services. Mobile phones have become ubiquitous tools for communication, internet access, and digital services, particularly in rural and underserved areas where fixed-line infrastructure may be limited. The rollout of advanced mobile technologies such as 4G LTE and the early deployment of 5G networks have further accelerated the growth of mobile services, offering faster data speeds, improved network coverage, and enhanced user experiences. The mobile service segment benefits from the dynamic nature of consumer demand, with users increasingly relying on mobile data for a wide range of activities such as social media, streaming video, mobile banking, and e-commerce. Telecom operators in Vietnam have responded to this trend by investing heavily in expanding and upgrading their mobile networks, deploying additional base stations, and optimizing network capacity to meet the growing demand for mobile data services. As a result, the mobile service segment is expected to maintain its dominance in the Vietnam Telecom Infrastructure Market, driven by ongoing investments in 5G deployment, network densification, and the continued evolution of mobile technologies to support emerging use cases such as IoT, smart cities, and Industry 4.0 applications. Initiatives to improve rural connectivity and bridge the digital divide through mobile broadband expansion will further bolster the dominance of the mobile service segment in the Vietnam Telecom Infrastructure Market during the forecast period.

The Central Vietnam region is emerging as the fastest-growing area in the Vietnam telecom infrastructure market due to a confluence of strategic geographical advantages, economic policies, and targeted developmental initiatives. Central Vietnam's geographical location positions it as a vital link between the northern and southern parts of the country, facilitating the seamless flow of information and communication services. This centrality makes it an attractive region for infrastructure development as it can serve as a pivotal hub for telecom networks, enhancing connectivity across the nation. Cities like Da Nang, Hue, and Quang Ngai are rapidly developing into economic and industrial centers, spurring demand for advanced telecom services to support business operations, urban management, and an increasingly digital lifestyle for residents. A key driver behind the region's rapid growth is the government's focused investment and infrastructure development plans tailored to elevate Central Vietnam’s economic profile. The region has been a beneficiary of significant public and private sector investments aimed at boosting its infrastructure, including the telecom sector. The government's "Master Plan on Development of ICT Infrastructure in Vietnam" explicitly targets underdeveloped regions like Central Vietnam to bridge the digital divide. This plan involves substantial investments in expanding broadband and 5G networks, thereby accelerating the telecom infrastructure development in this region. Special economic zones and technology parks established in Central Vietnam offer incentives and a favorable business environment for telecom companies to set up operations, driving the regional infrastructure growth further.

Central Vietnam has witnessed a substantial influx of foreign direct investment (FDI) which has been instrumental in bolstering telecom infrastructure. International investors are drawn to the region’s potential, seeing opportunities in its growing urbanization and industrialization. These investments are crucial in deploying cutting-edge technologies and upgrading existing telecom infrastructure to meet international standards. Companies from countries with advanced telecom capabilities have partnered with local firms, bringing in expertise, technology, and capital which collectively fuel the rapid development of the telecom sector. The region's focus on smart city initiatives and digital transformation projects also contributes significantly to its telecom infrastructure growth. Cities like Da Nang are pioneering smart city projects that require robust and sophisticated telecom networks to support services such as e-governance, intelligent transportation systems, and IoT-based urban solutions. These projects demand high-speed internet and reliable connectivity, prompting accelerated development and modernization of telecom infrastructure. The educational institutions and technology training centers in Central Vietnam are producing a skilled workforce adept in ICT, which supports the region's telecom industry. This skilled labor pool is essential for the maintenance and expansion of sophisticated telecom networks, ensuring sustainable growth.

Key market players in the Vietnam Telecom Infrastructure market are:-

• Huawei Technologies Co., Ltd.
• Nokia Corporation
• Ericsson AB
• Cisco Systems, Inc.
• ZTE Corporation
• Samsung Electronics Co., Ltd.
• NEC Corporation
• Fujitsu Limited
• Ciena Corporation
• Corning Incorporated

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“One of the prominent market trends in the Vietnam telecom infrastructure sector is the expansion of 5G networks. As a next-generation wireless technology, 5G offers significantly faster speeds, lower latency, and higher capacity compared to previous generations of mobile networks. In Vietnam, telecom operators are actively investing in the deployment of 5G infrastructure to meet the growing demand for high-speed mobile broadband services and support emerging technologies such as Internet of Things (IoT), augmented reality (AR), and virtual reality (VR). The rollout of 5G networks is expected to transform various industries, including manufacturing, healthcare, transportation, and entertainment, by enabling innovative applications and services that require real-time connectivity and massive data processing capabilities. Additionally, the Vietnamese government has expressed strong support for 5G development, with initiatives aimed at facilitating spectrum allocation, promoting infrastructure investment, and fostering collaboration between industry stakeholders. This trend is driven by the recognition of 5G as a key enabler of digital transformation and economic growth, positioning Vietnam as a leading player in the regional 5G landscape”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

“Vietnam Telecom Infrastructure Market By Type of Service (Mobile Service and Fixed-line Service), By Type of Equipment (Networking Equipment, Transmitting Device and End Point Device, By Region, Competition, Forecast and Opportunities, 2019-2029F,” has evaluated the future growth potential of Vietnam Telecom Infrastructure Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Vietnam Telecom Infrastructure Market.

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