Vietnam 5G Infrastructure Market Outlook to 2030

Vietnam 5G Infrastructure Market Overview

• The Vietnam 5G infrastructure market is valued at USD 822 million, based on a five-year historical analysis. This market has seen substantial growth due to the government's ambitious initiatives for digital transformation, investments in advanced technologies, and the rising demand for high-speed, reliable internet connectivity.
• The most dominant cities in the market are Ho Chi Minh City and Hanoi. These cities lead the market due to their dense urban populations, high concentration of industries, and status as economic hubs. These metropolitan areas are also the primary targets for initial 5G rollouts, as they have significant demand for advanced connectivity, making them key contributors to the market's early adoption.
• Vietnam's National Digital Transformation Programme aims to elevate its digital economy to$52 billionby2025, growing at29%annually. The government plans to achieve99%5G coverage by2030and enhance digital services across sectors, targeting60%of businesses in industrial zones to adopt digital platforms by this year.

Vietnam 5G Infrastructure Market Segmentation

By Network Type: The market is segmented by network type into Standalone (SA) Networks and Non-Standalone (NSA) Networks. Standalone networks hold the dominant market share in this segmentation due to their ability to offer a fully independent 5G infrastructure, which enables higher speeds and lower latency.

By Component: The market is further segmented by component into Core Network Infrastructure, Radio Access Network (RAN), Small Cell Deployment, and Edge Computing Infrastructure. Radio Access Network (RAN) holds a dominant share in this segment, largely due to its critical role in expanding coverage and enabling faster data transmission.

Vietnam 5G Infrastructure Market Competitive Landscape

The market is dominated by a mix of local and international players, each contributing to the growth and expansion of 5G technology. These companies are heavily involved in network deployment, research, and development of 5G solutions, as well as partnerships with local government bodies and industries to drive adoption.

Vietnam 5G Infrastructure Market Analysis

Market Growth Drivers

• Government Investment in Telecom Infrastructure: The Vietnamese government has committed resources towards the development of 5G infrastructure as part of its national digital transformation strategy. In 2024, the government allocated approximately $500 million to upgrade telecommunications networks, focusing on 5G deployment in key urban centers and industrial zones. These investments are expected to accelerate the rollout of 5G services, making Vietnam one of the regional leaders in advanced telecommunications.
• Rapid Manufacturing Growth: Vietnam's manufacturing sector is a key growth driver, contributing over20%to the GDP. In 2023, it attracted$23.5 billionin foreign direct investment, accounting for64.2%of total FDI. This sectors growth is driving the need for advanced connectivity solutions like 5G to enhance automation, supply chain management, and real-time data analysis. Industries such as automotive, electronics, and textiles rely heavily on smart manufacturing systems that require low-latency, high-speed networks, making 5G critical for operational efficiency.
• Increasing Demand for Data-Intensive Applications: The growing adoption of data-intensive applications such as augmented reality (AR), virtual reality (VR), and online gaming is driving the demand for faster and more reliable internet. By 2023, Vietnam had over 68 million internet users, many of whom are transitioning to 5G to support bandwidth-heavy applications. These applications require high-speed, low-latency networks, which 5G provides, enabling real-time interactions and improved user experiences.

Market Challenges

• Limited Spectrum Availability: Vietnam faces challenges with limited spectrum allocation, which is crucial for the deployment of 5G networks. As of 2023, the country had not yet fully allocated its 5G spectrum bands, delaying the process of network expansion. Spectrum auctions are expected to take place in 2024, but the delay has slowed down progress, limiting telecom operators' ability to provide consistent and widespread 5G services.
• High Deployment Costs: Deploying 5G infrastructure in Vietnam comes with substantial financial hurdles. The cost of installing 5G base stations across the country is estimated at $2 billion, which poses a challenge, particularly for smaller telecom operators. The high cost of network equipment, along with the need for a large number of base stations to ensure reliable coverage, is creating barriers to nationwide deployment.

Vietnam 5G Infrastructure Market Future Outlook

Over the next five years, the Vietnam 5G infrastructure industry is expected to demonstrate growth, driven by government support, technological advancements, and increasing demand for high-speed, low-latency communication. The country's focus on becoming a digital economy, combined with strategic investments in industries such as IoT, smart cities, and manufacturing, will fuel the rapid expansion of 5G networks across the region.

Future Market Opportunities

• Expansion into Rural Areas: Over the next five years, Vietnams 5G infrastructure is expected to expand into rural areas. The governments Rural Connectivity Initiative will drive this growth, with plans to cover over 80% of rural households by 2029. This expansion will be supported by additional investment in base stations and fiber optic cables, providing high-speed internet access to underserved regions.
• Integration with Smart City Projects: Vietnams ongoing smart city initiatives, including those in Hanoi and Ho Chi Minh City, will heavily rely on 5G infrastructure over the next five years. By 2029, more than 25 cities in Vietnam are expected to implement smart traffic management, environmental monitoring, and public safety systems, all powered by 5G technology. These projects will be crucial in managing urbanization and improving the quality of life for residents, positioning Vietnam as a leader in smart city development within Southeast Asia.