return icon Vietnamnet.vn

Vietnamese telecoms giants grappling with chip shortfall

While the shortfall of semiconductor chips is affecting the performance of Vietnamese telecoms giants, higher targets have been set with prospects driven by growing digital transformation demands on a local level.

At present, leaders of Vietnam Posts and Telecommunications Group (VNPT), the top provider of telecommunications services and digital solutions in Vietnam, are attempting to shelter from the storm of semiconductor chip shortfall and the ongoing negative pandemic impacts.

General director Huynh Quang Liem explained that while COVID-19’s direct impact on the group’s performance has not been as serious as in 2021, many of its business activities still face difficulties that will possibly affect the company’s revenue and profit targets for 2022 as a whole.

Together with interruptions in the global supply chains, shortages of semiconductor chips, and a rise in input material prices, service fees have fallen, which are also affecting business results for VNPT.

The group reported that its consolidated profit rose 17 per cent on-year in the first six months of 2022, but consolidated revenues of VND26.8 trillion ($1.17 billion) are down 2 per cent on-year.

VNPT’s core business lines and sectors include fixed and mobile telecommunications, broadband internet access, satellite communication services, and digital services and solutions for governments, businesses, and citizens.

In a similar situation, MobiFone reported an on-year fall of 3 per cent in revenues during the period, while profits increased 13 per cent.

MobiFone leaders admitted that, like similar groups, they face many challenges with revenues and profits from traditional businesses decreasing. Meanwhile, it still lags behind other players in new services and business lines that have the potential to create new financial sources.

MobiFone now focuses on the three core business lines of digital infrastructure, digital solutions/platforms, and digital content services.

Hoang Viet Tien, head of Strategic Advisory at Insider Group - a provider of marketing technology solutions, told VIR, “The Ukraine-Russia conflict has been affecting telecoms firms, especially operators of base transceiver stations (BTS) and developers and providers of sensors for smart cities development.”

Viettel is operating about 1,000 BTS nationwide, while partnering with a number of cities and provinces in the development of smart cities. To date, 41 out of 63 localities have been building their smart city development plans. VNPT is also providing IT solutions for smart city development, and also operates thousands of BTS throughout the country.

Industry insiders said that the conflict in Europe is adding pressure to the global chipset manufacturing industry because the rare gas supply important for manufacturing is being tightened, increasing interruption in the manufacturing of semiconductors which was already seriously affected by pandemic restrictions. Ukraine typically supplies well over half of the world’s neon gas, which is an indispensable by-product for chip production.

Qualcomm, the world’s biggest supplier of smartphone chips, admitted the situation is a struggle. Many other US chip producers, including Intel, said that the situation will continue into 2023. Qualcomm is an important partner of Viettel, VNPT, and other telecom firms in Vietnam. For instance, Qualcomm and Viettel are cooperating to develop 5G infrastructure solutions.

Despite the challenges in the chip supply, Vietnamese tech giants are setting higher business results for 2022. In particular, VNPT aims to fetch a revenue of VND41.45 trillion ($1.8 billion) and a pre-tax profit of VND4.77 trillion ($207.39 million) this year.

Meanwhile, this year is a key one for MobiFone to start its new space service businesses. The parent company targets to make revenues of over VND30 trillion ($1.3 billion), and an on-year rise of 15 per cent in profit.

Viettel has retained the number-one position in the telecoms market with 54 per cent of the share of mobile subscribers, and over 40 per cent of optic internet subscribers.

Source: VIR

MORE NEWS

HCM City to pilot issuance of electronic civil status records

The HCM City Department of Justice has proposed the Ministry of Justice pilot the issuance of electronic civil status records instead of a paper version as part of efforts to enhance satisfaction with civil status registration.

Spiritual sites to visit in spring around Hanoi

Some of our recommendations might be the perfect place for you and your loved ones to spend the spring.

Huong Pagoda crowded on the first day of spring festival 2023

Despite the cold weather, thousands of people flocked to the Huong (Perfume) Pagoda Festival in Huong Son commune, Hanoi’s outlying district of My Duc on the opening day to celebrate the new year.

Data centers: Vietnam's bright spot

Under the impact of Covid-19, many activities have moved to online platforms and amount of data uploaded has been increasing.

More Vietnamese scientists returning to home country

More Vietnamese scientists decided to return to the country with a desire to devote themselves to their homeland’s growth.

Hoang to defend WBA belt in hometown next month

Truong Dinh Hoang announced the bout on his Facebook page on February 26, though the challenger has yet to be named.

Sea tourism and expectations for a 'made in Vietnam' fleet

The number of cruise tourists accounts for only 2-3% of the total number of international visitors to Vietnam.

Hanoi’s tourism sector rakes in over VND1 trillion during Tet holiday

The capital expects to welcome roughly 332,000 visitors, including 32,000 international guests, during the Lunar New Year holiday from January 21 to January 26, with total revenue anticipated to reach more than VND1 trillion.

Stone lion statues - Symbol of stone sculpture art of Ly Dynasty

According to Buddhism, lion is the embodiment of intellectual power, but with stars on the body, the stone lions of the Ba Tam pagoda-temple also have the meaning of carrying the moving sky.

Vietnam's retail market predicted to bustle in 2023

Although 2023 is forecast to see many difficulties, experts expect this is a recovery year of the retail sector after COVID-19 pandemic as there are many signs showing the return of investors and higher demands.

Vietnam's leather and footwear industry targets US$27 billion in 2023 exports

The leather and footwear industry is striving to reach US$27 billion in export turnover in 2023, an increase of about 10% compared to one year earlier amid shrinking major markets and falling demand.

Discovering artisans' skills in Thanh Ha ancient pottery village

If pottery villages now mainly use molds, artisans in the Thanh Ha ancient pottery village in Hoi An city, Quang Nam, have kept their traditional method of making pottery - hand made and wheel thrown.

Destinations across Vietnam report surges in holiday-maker numbers during Tet

Tourist attractions across Vietnam have lured large numbers of holiday-markers during the week-long Lunar New Year (Tet) festival from January 20-26.

EVFTA presents tremendous trade, investment advantages

Commitments outlined in the EVFTA on both trade and investment are expected to contribute to attracting European businesses and investors to expand their activities in Vietnam, further promoting trade and investment cooperation.

10 houses with special architecture in Vietnam

With bold ideas, architects can create houses that are both aesthetic and functional. Here are 10 interesting houses in Vietnam.
back_to_top