The telecommunications sector in Vietnam is a vibrant and expanding industry. With a market size of USD 6.3 billion in 2022 and a projected CAGR of 4.4% from 2022 to 2027, the country's National Digital Transformation Program, the expansion of 5G networks, and the deployment of subsea cable systems are all driving forces propelling the growth of the telecom services market (Source: Vietnam telecom services market research report). The mobile penetration rate in Vietnam stands at an impressive 112%.
Fueled by the Vietnamese government's dedication to its development, this industry serves as a crucial engine for the nation's economic progress. Substantial investments in infrastructure, coupled with policies promoting competition, have set the stage for an era of transformation in the telco landscape.
Insights from GlobalData's Vietnam Telecom Operators Country Intelligence Report shed light on the trends shaping the industry's trajectory. While mobile voice service revenue faces a decline due to a drop in ARPU and users gravitating towards OTT platforms, mobile data service revenue is poised for a healthy CAGR of 13.5%. This surge is attributed to the growing number of Vietnam mobile internet users, especially on 4G networks. Anticipation for the launch of 5G services in 2023, and the subsequent surge in its adoption, is expected to elevate both mobile data service ARPU and overall revenue growth.
Top telecom companies in Vietnam include Viettel, VNPT, Mobifone, Vietnamobile, and G-Mobile. Viettel is leading the mobile services segment in terms of subscriptions and is set to maintain its dominance by focusing on 4G/5G network expansion. VNPT, on the other hand, is a major player in fixed voice and fixed broadband segments, buoyed by its strength in the FTTH category and cost-effective multiplay service bundles.
In this rapidly evolving telecommunications environment, revenue generation is a pivotal challenge and opportunity for telcos. As technology advances and customer preferences shift, maintaining profitability is crucial for innovation, network enhancement, and service improvement. Effective revenue generation not only ensures telcos' competitiveness but also contributes to the digital economy's growth.
Amidst this backdrop, implementing the following robust revenue generation strategies is key for telcos to flourish and remain resilient in a dynamic landscape.
1. Focus on Digital Transformation
In September 2021, the Ministry of Information and Communications (MIC) introduced the "National Digital Transformation Program by 2025," extending its vision to 2030. This program accelerates digital transformation by altering business approaches and offering incentives to drive digital adoption in enterprises, government operations, and manufacturing (Source : .GlobalData Plc).
With the Vietnamese government promoting digital transformation, embracing it stands as a strategic imperative for all telcos to thrive. By harnessing the power of technology, telcos can not only modernize their services but also elevate customer experiences to unprecedented levels. Leading telcos have already taken significant strides in adopting transformational technologies that not only enhance user engagement but also drive robust revenue generation.
A compelling instance of this transformation is the integration of AI-driven chatbots to revolutionize customer support. These intelligent assistants operate around the clock, promptly addressing inquiries and swiftly resolving concerns. Viettel's deployment of AI-powered chatbots showcases their ability to handle routine queries while also comprehending natural language, providing personalized solutions that resonate with each individual subscriber.
Moreover, the adoption of digital self-service platforms marks another facet of this transformation journey. These platforms empower subscribers to effortlessly manage their accounts, settle bills, and tailor services through intuitive interfaces. Vietnamobile's user-centric app, for instance, empowers subscribers to exert effortless control over their services, personalizing plans and accessing additional features seamlessly.
Pioneering the path of digital evolution, Vietnam's telcos have embraced innovative solutions that cater to the dynamic needs of consumers. A standout transformational solution is the moLotus mobile video customer interaction platform. Operating on GSM technology, this platform directly reaches mobile handsets, regardless of device model or the presence of an app or data plans. moLotus empowers telcos to deliver immersive media content like videos and personalized messages, effectively engaging customers on an entirely new level. This transformative technology not only enhances customer interaction but also creates novel revenue opportunities for telcos.
One striking example of this is moLotus's capability to automate and transform various customer processes, including payment and service reminders, loyalty programs, contract renewals, and customer onboarding. By seamlessly integrating with telcos' operations, moLotus propels them into the modern digital landscape, surpassing customer expectations and elevating both top-line and bottom-line performance at significantly reduced costs.
In essence, the best mobile operators in Vietnam are embracing digital transformation not just as a necessity, but as a catalyst for revenue growth and differentiation. By adopting innovative technologies such as AI chatbots, intuitive self-service platforms, and transformative solutions like moLotus, these telcos are redefining industry standards, exceeding customer demands, and charting a course towards sustainable success.
2. Leveraging Mobile Advertising Opportunities
In the bustling landscape of Vietnam, the mobile advertising market has emerged as a dynamic avenue for revenue generation. With smartphone penetration rapidly increasing, the mobile advertising sector is witnessing remarkable growth.
According to Statista, the mobile advertising spend in Vietnam is projected to reach USD 1,201 million in 2023. This represents a growth of 21.6% from the USD 985 million spent in 2022. The number of mobile internet users in Vietnam is projected to reach 161.6 million in 2023. This means that more and more people will be using their smartphones to access the internet, which creates an opportunity for telecom operators in Vietnam to reach them with mobile advertising.
The mobile advertising market in Vietnam is fragmented, with a number of different players. Google is the dominant player in the mobile advertising market in Vietnam. It controls about 60% of the market share. Facebook: Facebook is the second-largest player in the mobile advertising market in Vietnam. It controls about 20% of the market share. Vinagame is a Vietnamese mobile game publisher and developer controlling about 10% of the market share. Adtima is a Vietnamese mobile advertising network which controls about 5% of the market share.
Telcos in Vietnam have a unique opportunity to collaborate with mobile advertising platforms to tap into this thriving market. These collaborations allow telcos to leverage their extensive subscriber base and partner with advertising platforms to deliver targeted and engaging ads directly to mobile users. This partnership enhances customer engagement while driving substantial revenue growth.
For instance, moLotus mobile video customer interaction platform presents an innovative avenue for telecom marketing strategy. By integrating moLotus, telcos can seamlessly engage subscribers with personalized multimedia content directly to their mobile handsets, irrespective of the phone's model or app availability. This opens up new dimensions of customer interaction, enabling telcos to not only generate revenue through advertising but also enhance customer loyalty and brand perception.
Moreover, other advertising platforms such as Google Ads and Facebook Ads offer sophisticated targeting capabilities, enabling telcos to reach specific demographics with tailored ads. By strategically positioning ads, telcos can not only boost their revenue but also foster stronger connections with their subscribers.
The mobile advertising landscape in Vietnam presents telcos with a golden opportunity to drive revenue growth through collaboration with advertising platforms. With solutions like moLotus and the capabilities of Google Ads and Facebook Ads, telcos can engage their subscriber base effectively, capitalize on the mobile advertising boom, and create a win-win scenario that benefits both telcos and advertisers.
3. Subscriber Data Monetization
Subscriber data's significance has escalated for Vietnam's telcos, presenting a strategic path to generate added revenue streams. By capitalizing on insights derived from subscriber actions and inclinations, telcos can deliver focused ads, personalized services, and valuable insights to advertisers and businesses.
The projection for subscriber data monetization's total revenue in Vietnam is USD 2.4 billion for 2023, a 15% rise from the USD 2 billion of 2022. Viettel, claiming about 40% of the market, dominates subscriber data monetization, with Vinaphone at 25% and Mobifone at 15%.
Breakthrough tools like moLotus utilize telecom subscriber data for tailor-made, engaging, and automated rich media campaigns. This data serves as a valuable source of insights for various uses, enhancing revenues and informing decisions. Simplified for efficiency, it drives mobile advertising and customer process improvements via moLotus, elevating ARPU and strategic tactics. This anonymized data can be shared with advertisers, enabling precise campaign tailoring for target audiences. Telcos can transform this data into a revenue stream by providing access to advertiser segments while upholding customer privacy.
Google Analytics is another helpful tool that assists telecom businesses in tracking user actions and collecting user data. This data offers deep insights into user behaviors and demographics. By analyzing this data, telcos can offer advertisers specific audience groups for targeted campaigns, boosting value for advertisers and revenue for themselves.
With Facebook Audience Insights, telcos can analyze user data from interactions with Facebook assets. This data helps create detailed customer profiles, allowing telcos to segment their subscriber base for effective data monetization. Advertisers can then create targeted campaigns, enhancing engagement and revenue for telcos.
4. Enhancing Customer Communication
Personalized customer interactions have gained paramount importance in the Vietnamese telecom arena. Telcos operating in Vietnam are gradually recognizing the significance of tailoring experiences that resonate with individual preferences and needs. Personalized campaigns are more likely to engage telco customers because they are more relevant to their interests. For instance, more and more telcos have started embracing moLotus mobile advertising campaigns personalized according to customer name, address etc. to effectively engage customers and earn more.
Mobile operators in Vietnam should send more tailored suggestions and exclusive deals to their customers, garnering immediate attention and quick responses. They should leverage their customer data, Artificial Intelligence (AI), and sophisticated algorithms to craft highly personalized ad campaigns via moLotus, resonating deeply with individual preferences and interests and boosting engagement rates and revenue.
Telcos have moved beyond relying on emails and social media, as they now possess advanced technology and platforms for effective brand-customer interaction. moLotus has transformed the landscape, making it effortless for telcos to engage and captivate subscribers. This technology enables telcos to communicate about their offerings through highly interactive moLotus campaigns, resulting in increased conversions and sales revenues.
Telco marketers are crafting engaging and profitable advertising campaigns through moLotus, featuring user-friendly response options like URL Click, mgram, USSD, SMS, Call, and more. Additionally, this tool enhances visual communication by providing a diverse range of rich media formats such as videos, brochures, greetings, slideshows, and showcases. Telcos can incorporate product images, voice-overs, music, and other elements to create captivating storyboards and impactful mobile videos, all within a concise timeframe of up to 40 seconds.
5. Forging Strategic Alliances with Tech Platforms
For the Vietnamese telecom industry, nurturing strategic collaborations holds significant promise for aiming to bolster revenue streams. Partnering with the right tech entities can facilitate the expansion of telcos, granting reach to more customers and the utilization of complementary expertise and resources.
These collaborations help telcos to tap into the existing customers of their partners. Aligning with entities that share a similar target audience but offer distinct products or services permits telcos to extend their reach to a wider pool of potential customers. This expanded outreach contributes to heightened brand visibility and a more efficacious generation of advertising revenue.
When telcos establish strategic partnerships with trusted technology platforms like moLotus, the repercussions can improve their own brand image. This enhancement bolsters credibility, trust, and consumer confidence, ultimately increasing customer loyalty and culminating in more robust revenue creation.
Collaborating with moLotus, for instance, empowers telcos to harness the platform's resources, knowledge base and technical acumen. This cooperative approach can yield cost efficiencies, streamlined operational effectiveness, and access to deep insights. For instance, telcos can harness extensive customer data to dispatch ads directly to subscribers' mobile inboxes, without necessitating app downloads or data plans.
Furthermore, Vietnamese telecom operators can innovate by reaching and crafting distinctive value propositions for nationwide audiences. This might encompass joint promotional campaigns, bundled offerings, or exclusive discounts for customers of both collaborating brands. These symbiotic ventures can set telcos apart from their rivals, acquire new enterprise clientele, and fortify new revenue streams. By partnering with moLotus, telecoms can enter into new territories across diverse industries or target demographics.
6. Enhancing Consumer Revenues
Telecommunication networks in Vietnam are seeking fresh strategies to boost their business by raising the average revenue per user (ARPU). This has become a major challenge for the telcos here. In 2022, some Vietnamese telecom providers saw growth in both their customer numbers and revenues. However, sustaining this growth this year is proving tough, especially with economic pressures on the horizon.
Unfortunately, the average revenue per user (ARPU) is projected to decrease in Vietnam's telecom industry in 2023. There are several reasons for this. One major factor is the increasing use of over-the-top (OTT) services like WhatsApp, Facebook Messenger, and Netflix. These services let users communicate and watch content without using mobile data, which is causing the ARPU to drop.
As living costs rise in Vietnam, household budgets are tightening. People are cutting back on their spending on telecom services, which also contributes to the ARPU decline.
Experts suggest that Vietnamese telcos should treat their customers better by integrating innovative marketing tech like moLotus. By doing this, they can engage customers more effectively, provide greater value, and enhance every stage of the customer journey, leading to a swift ARPU increase.
Studies reveal that many Asian telecom brands have seen consumer revenues rise by two to four percent after adopting moLotus. Through moLotus's innovative marketing, telecoms are improving customer response, revenue, and overall business performance while minimizing costs. The technology is boosting cross-selling, upselling, and add-on campaigns, ultimately increasing customer lifetime value and ARPU.
Vietnam's industry leaders are optimistic that incorporating moLotus's advanced features will benefit their telecom businesses, leading to a ARPU uplift.
Conclusion
The dynamic landscape of Vietnam's telecommunications industry demands proactive action. Telcos are urged to put the outlined strategies into practice, embracing digital transformation, leveraging mobile advertising opportunities, and enhancing customer engagement. By collaborating strategically, harnessing subscriber data, and forming win-win partnerships with technologies like moLotus, telcos can tap into new high-margin revenues.
Vietnam's telecommunications market is poised for remarkable growth. By adopting these strategic initiatives, telcos can not only navigate challenges but also position themselves for sustainable revenue growth. The potential for enhancing ARPU, monetizing subscriber data, and refining customer engagement is immense. Seize the big revenue opportunity now!
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