Viettel Eyes Entry Into Digital Services Market

HCM City – The country’s leading telecom company, Viettel, is set to become a digital service provider this year, having lined up a number of products and services from the digital eco-system.

“To create a digital society, Viettel must do two things: manufacture products and services of industry 4.0 standard and promote digitisation of the government,” Gen Lê Đăng Dũng, chairman of Viettel Group, told Việt Nam News.

The military-owned company is upgrading its 4G network to create infrastructure for the internet of things (IoT).

Viettel plans to offer 5G services in the first quarter of this year once the Government approves testing of 5G technical systems, and pilot business models that use 5G technology.

By next year its 5G broadband network would expand to meet the needs of businesses and socio-economic development.

Viettel has virtualised all core network equipment and information technology infrastructure; transferred all IT applications to cloud and is ready with mobile edge computing.

The company has set up five data centres with international-standard Tier 3, soon to become Tier 4, which enables millions of clients to use IoT at the same time.

It has researched, developed and applied key industry 4.0 technologies such as big data, artificial intelligence (AI) and virtual reality (VR) into its IT systems to better serve customers.

It has set up a cybersecurity company to ensure information security and safety.

It has focused on researching and manufacturing equipment used in digital networks like virtual core networks, 5G base transceiver stations, sensors, and AI products.

Last year the contribution of digital services, including content, media, IoT, and fintech, to the company’s turnover was 7.1 per cent.

“Viettel will continue to develop the traditional telecom business and accelerate digital services,” Dũng added.

Last year Viettel achieved a turnover of VNĐ234 trillion (US$10.2 billion), or 60 per cent of that of the entire telecom industry, and a profit of VNĐ37.6 trillion ($1.64 billion).

While 2018 was a challenging year, with the Vietnamese telecom market saturating Viettel managed to achieve 8 per cent growth and its international investment increased by 20 per cent.

Viettel was the top brand in Việt Nam last year and among the top 50 in the global telecom industry with a value of nearly $3.2 billion, 23.7 per cent higher than in 2017.

This year it targets growth of 7.3 per cent in turnover (VNĐ251 trillion) and 4.6 per cent in profit (VNĐ39 trillion). – VNS