The ICT industry grew strongly 2016 but challenges await in 2017.

FPT and Viettel, two large telecom and IT corporations, which have reaped initial successes from making outward investments, say they will join forces with other Vietnamese businesses to exploit foreign markets.

VietNamNet Bridge - Following Viettel, VNPT and MobiFone are considering waiving roaming fees in Laos, Cambodia and Vietnam. The policy has never been applied in any other region in the world.

The Ministry of Information and Communication (MIC) has told mobile network operators to stop sales promotion campaigns until the end of 2016, in an attempt to stop price wars.

VietNamNet Bridge - Investments in research & development (R&D) in Vietnam have been increasing rapidly with the presence of many multinational investors.

There are signs of a ‘price war’ among the three biggest mobile network operators – Viettel, MobiFone and VinaPhone – as all of them are putting high hopes on 4G deployment plans.

VietNamNet Bridge - Developing data products is the only choice for small networks amid pressure from the giant telecoms VinaPhone, MobiFone and Viettel.

VietNamNet Bridge - The 4G market has been activated with licenses having been granted to Viettel and VNPT, with more newcomers on the way. 

Among 8 million fixed internet broadband subscribers, there are 5.5 million FTTH (fiber to the home) subscribers. The modest number of FTTH subscribers means there are still opportunities for new service providers.

 Minister of Information and Communications Truong Minh Tuan on October 14 signed licences granted to the military-run Viettel Group and VNPT to set up public telecommunication networks and provide 4G services. 

FPT is preparing for 4G trial, while Vietnamobile has announced it wants to join the 4G playing field. However, the telcos will have to wait until 2017 to attend the auction for the 4G 2.6GHz frequency band.

VietNamNet Bridge - After a trial run, Vietnamese network operators are ready for 4G, a necessary step for Vietnam to advance toward 5G and prepare for the Internet of Things (IoT).

VietNamNet Bridge - The OTT (over the top) market in which apps for messaging free of charge on the internet has cooled down after a hot period.

VietNamNet Bridge - Vietnam is witnessing a fiber-to-home (FTTH) subscription boom with the number of FTTH subscribers 1.6 times higher than those who buy ADSL services.

VietNamNet Bridge - Contrary to mobile network operators’ commitments, the speed of 4G services provided on a trial basis has been slow, while service fees are high, disappointing the first 4G simcard owners in Hanoi.

VietNamNet Bridge - Many subscribers have left VNPT (the Vietnam Post & Telecommunication Group) recently, helping VNPT’s rivals such as Viettel and FPT Telecom obtain larger market share.

The MobiFone Telecommunications Corporation (MobiFone), the second-largest mobile operator in terms of subscribers, has started piloting its 4G and MobiTV services July 1.

The three biggest mobile networks – Viettel, VinaPhone and MobiFone – now hold 95 percent of the Vietnamese mobile telecom market. However, small network operators believe there are still opportunities.

VietNamNet Bridge - A saturated market and stiff competition have forced certificate authorities (CAs) to slash service fees and offer a sky-high discount rate of 75-80 percent.

VietNamNet Bridge - Some mobile network operators have proposed to take back 2G network frequency to pave the way for the development of 4G network. However, some analyst say it is still too early.