Vietnam Millimeter Market Outlook to 2030

Vietnam Millimeter Market Overview

• The Vietnam millimeter market has shown remarkable growth over the years. It is driven by the initial phases of 5G network deployment and increasing demand for high-speed internet services. The market expanded to around USD 29.3 million in 2023, reflecting a CAGR of 20.7% in the past five years.
• The Vietnam millimeter market is highly fragmented, with several key players like NEC Corporation, Ericsson, Huawei Technologies, Samsung Electronics, and Qualcomm. These companies have established a strong presence in the market through extensive R&D capabilities, strategic partnerships, and a comprehensive portfolio.
• A notable development in the market is the collaboration between Samsung Electronics and Viettel, Vietnam's largest telecom operator, announced in 2022. This partnership aims to accelerate the deployment of 5G networks across the country, utilizing Samsung's advanced millimeter wave technology to enhance network capacity and performance.

 Vietnam Millimeter Market Current Analysis

• According to the Ministry of Information and Communications, the Vietnamese government has launched several initiatives to promote digital infrastructure development. These include subsidies and tax incentives for companies investing in 5G technology.
• The integration of millimeter wave technology with artificial intelligence (AI) and the Internet of Things (IoT) is becoming a trend. According to a report by the International Data Corporation (IDC), the number of IoT devices in Vietnam is expected to reach 50 million by 2025.
• Northern Vietnam leads the millimeter wave market, accounting for 40% of the total market share. According to the Ministry of Information and Communications, Hanoi alone has seen a rapid deployment of 5G base stations, driven by both public and private sector initiatives to enhance digital connectivity.

 Vietnam Millimeter Market Segmentation

The Vietnam millimeter market can be segmented into various factors like product, application, and region:

By Product Type: The Vietnam millimeter market is segmented into different products like Antennas, Transceivers, and other components. In 2023, antennas is the dominant segment since it is critical for signal transmission and reception in 5G networks. Their dominance is driven by the need for efficient, high-capacity communication infrastructure.

By Application: The Vietnam millimeter market is segmented into applications like telecommunications, automotive, and healthcare. In 2023, telecommunications dominate due to the extensive rollout of 5G networks, requiring millimeter wave technology for high-speed data transfer. 

By Region: The Vietnam millimeter market Market is segmented into regions which are North, East, West & South. In 2023, northern region dominates due to higher urbanization and greater investments in 5G infrastructure leading to higher adoption of millimeter wave technology.

Vietnam Millimeter Market Competitive Landscape

• NEC Corporation: NEC has been a pioneer in the millimeter wave market, leveraging its strong R&D capabilities to develop cutting-edge solutions. The company's strategic partnerships with telecom operators have significantly boosted market penetration.
• Ericsson: Recognized for its robust portfolio of telecommunications equipment, Ericsson has made significant strides in the millimeter wave market, contributing to the expansion of 5G networks in Vietnam.
• Huawei Technologies: Huawei Technologies is a major player in the Vietnam millimeter wave market, known for its advanced telecommunications solutions. Despite facing geopolitical challenges and restrictions in some markets, Huawei continues to innovate in the field of millimeter wave technology.

Vietnam Millimeter Market Analysis

Vietnam Millimeter Growth Drivers:

• Expansion of 5G Networks: One of the growth driver for the Vietnam millimeter wave market is the deployment of 5G networks. As of 2023, there were approximately 70 million internet users in Vietnam, with a significant portion using mobile devices. The increased adoption of smartphones and mobile internet services necessitates the deployment of high-speed 5G networks
• Increasing Data Traffic: Increasing data traffic is a significant growth driver in Vietnam. With 70 million internet users in 2023 and an internet penetration rate of over 70%, there is a heightened demand for higher bandwidth and faster data transfer rates provided by millimeter wave technology.
• Technological Innovations: Technological advancements in millimeter wave technology are a key growth driver. Innovations such as Qualcomm’s advanced millimeter wave chipsets, which offer improved data transfer speeds and reliability, are making the technology more efficient and cost-effective.

Vietnam Millimeter Market Challenges

• High Deployment Costs: The initial costs associated with deploying millimeter wave infrastructure are substantial, posing a significant challenge for telecom operators and service providers. According to a report by the Ministry of Information and Communications, the cost of setting up a single 5G base station in Vietnam is approximately USD 170,000.
• Regulatory and Spectrum Allocation Issues: Complex regulatory frameworks and spectrum allocation processes can delay the deployment of millimeter wave technology. The World Bank has noted that regulatory delays have impacted the timely rollout of advanced telecommunications infrastructure in Vietnam, creating a bottleneck for market growth.
• Technical Challenges: Millimeter wave technology faces several technical challenges, including signal attenuation and limited range. According to a study by the Institute of Electrical and Electronics Engineers (IEEE), overcoming these technical hurdles is essential for the widespread adoption of millimeter wave technology in urban and rural areas.

Vietnam Millimeter Market Government Initiatives

• Public-Private Partnerships (2022): The government has encouraged public-private partnerships to develop and deploy advanced communication technologies. The collaboration between Viettel and Samsung for 5G deployment is a direct result of such initiatives.
• Digital Transformation Program (2020): Aimed at enhancing digital infrastructure across the country, this program includes significant investments in 5G and millimeter wave technology to support the digital economy. The program has a budget of VND 45 trillion (USD 1.9 billion) and is expected to drive substantial growth in the telecommunications sector.
• National Strategy for Industrial Revolution 4.0 (2020): This strategy focuses on leveraging advanced technologies, including millimeter wave, to drive industrial growth and innovation. The strategy outlines investments in research and development to enhance Vietnam's technological capabilities, supporting the growth of the millimeter wave market.

Vietnam Millimeter Future Market Outlook

The future of the Vietnam millimeter wave market looks promising with increasing demand for high-speed, low-latency internet services, and advancements in millimeter wave technology. The government's supportive policies and investments in digital infrastructure will further fuel this growth, positioning Vietnam as a leading market.

Future Market Trends

• Integration with AI and IoT: The integration of millimeter wave technology with artificial intelligence and the Internet of Things is becoming a trend. This integration facilitates smarter, more efficient networks that can handle large volumes of data and provide enhanced connectivity solutions.
• Healthcare Applications: The use of millimeter wave technology in healthcare, particularly in high-resolution imaging and diagnostics, will see growth, driven by the need for advanced medical solutions. The government is investing in modernizing healthcare infrastructure, which includes the adoption of advanced imaging technologies.