Industry Trend Analysis - 4G A Positive But Limited Opportunity For Vietnamobile - MAR 2018

BMI View: Obtaining a 4G licen c e is a positive step for Vietnamobile , but more investment from parent Hutchison is needed in order to compete in a mobile market undergoing liberalisation . As one of the big three players will likely snap up market laggard GMobile, Vietnamobile would be left as the smallest mobile player.

Vietnamobile's 4G licence will help retain and grow its subscriber base, but will add little to a market where 3G is still in its infancy in rural areas and is only beginning to gain traction in urban areas. 2G still dominates the market, leading us to believe that Vietnamobile's late adoption of 4G will not hinder its prospects. Adoption of 3G/4G will continue to be slow, reaching only 50.7% of total mobile phone subscriptions by 2021, up from an estimated 33.5% in 2017.

Slow to the Fore, But Status Quo Will Remain

2G Still King, 3G/4G Adoption Muted
Vietnam Mobile Market Trends
e/f = BMI estimate/forecast. Source: BMI, VNTA

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