Vietnam 5G Core Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Vietnam 5G Core Market Overview

• The Vietnam 5G Core Market is valued at approximately USD 822 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-speed internet, the proliferation of IoT devices, and the government's push for digital transformation across various sectors. The expansion of 5G infrastructure is also supported by investments from both domestic and foreign entities, enhancing connectivity and enabling new applications. Major telecommunications operators are rapidly advancing large-scale 5G infrastructure deployment, with Viettel targeting 20,000 new base stations in 2025 alone, while VNPT and MobiFone expand coverage to commune-level access points.
• Key players in this market include major telecommunications companies such as Viettel, VNPT, and MobiFone, which dominate due to their extensive network coverage, technological advancements, and strong customer bases. These companies are strategically positioned in urban areas like Ho Chi Minh City and Hanoi, where the demand for high-speed connectivity is the highest, thus driving market growth. Viettel has pioneered the nation's first commercial 5G rollout, achieving broad coverage across all provinces and major cities, with particular emphasis on key economic and social hubs such as industrial parks, airports, seaports, hospitals, and educational institutions.
• The Vietnamese government has established a comprehensive regulatory framework to promote the development of 5G technology, which includes a roadmap for spectrum allocation and guidelines for infrastructure deployment. Prime Minister Pham Minh Chinh's Directive 05/CT-TTg (March 2025) emphasized 5G commercialization and broadband expansion as key drivers of economic growth. In March 2024, Vietnam commenced its highly anticipated 5G spectrum auction, open to all telecom operators, featuring the B1 2500-2600 MHz band and additional auctions for other bands including 2.6 GHz, 3.5 GHz, and 700 MHz. This initiative aims to facilitate the rollout of 5G services nationwide, ensuring that the technology is accessible to both urban and rural populations, thereby fostering economic growth and innovation.

Vietnam 5G Core Market Segmentation

By Core Network Technology:The core network technology segment includes various technologies that enable the functioning of 5G networks. The subsegments are Software-Defined Networking (SDN), Network Function Virtualization (NFV), Mobile Edge Computing (MEC), and User Plane Function (UPF). Mobile Edge Computing (MEC) has emerged as the dominant core network technology segment, driven by the demand for low-latency, high-bandwidth applications. MEC enables innovative use cases and services in various industries, including smart cities, autonomous vehicles, healthcare, and industrial automation. Each of these technologies plays a crucial role in enhancing network efficiency, flexibility, and scalability, which are essential for supporting the growing demand for 5G services.

By End-User:The end-user segment encompasses various industries that utilize 5G technology, including Telecommunications Operators, Healthcare, Manufacturing, Automotive, and Energy & Utilities. Each sector leverages 5G capabilities to enhance operational efficiency, improve service delivery, and enable innovative applications that were previously not feasible with older network technologies. Telecommunications firms like MobiFone are expanding 5G-AI integrated B2B portfolios with over 100 digital solutions spanning industrial automation, healthcare, energy, education, and smart city applications.

Vietnam 5G Core Market Competitive Landscape

The Vietnam 5G Core Market is characterized by a dynamic mix of regional and international players. Leading participants such as Viettel Group, VNPT (Vietnam Posts and Telecommunications Group), MobiFone, FPT Telecom, CMC Telecom, Saigon Cable Television (SCTV), Viettel Network, Vietnam Multimedia Corporation (VTC), NetNam, Bkav Corporation, HPT Vietnam, FPT Software, CMC Corporation, VNG Corporation, and Mobifone Technology Solutions contribute to innovation, geographic expansion, and service delivery in this space. Vietnam has emerged as a regional leader in Open RAN implementation, with Viettel High Technology commercially launching the world's first Open RAN-based 5G network using Qualcomm platforms, with over 300 live sites deployed and plans to scale the rollout to thousands of sites across Vietnam and international markets.

Vietnam 5G Core Market Industry Analysis

Growth Drivers

• Increasing Demand for High-Speed Internet:The demand for high-speed internet in Vietnam is surging, with the number of broadband subscriptions reaching approximately 17 million in future. This figure is projected to grow as urbanization increases, with the urban population expected to rise to 48% in future. The World Bank reports that internet penetration in Vietnam is around 75%, indicating a significant market potential for 5G services to meet the growing consumer expectations for faster connectivity.
• Government Initiatives for Digital Transformation:The Vietnamese government has committed to investing $1.8 billion in digital infrastructure in future, aiming to enhance the country's digital economy. This initiative aligns with the national strategy to increase the contribution of the digital economy to GDP from 8% in future to 22% in future. Such government support is crucial for the development and deployment of 5G technology, facilitating a robust digital ecosystem.
• Expansion of IoT Applications:The Internet of Things (IoT) market in Vietnam is expected to reach $3 billion in future, driven by the increasing adoption of smart devices across various sectors. With over 35 million connected devices reported in future, the demand for 5G technology to support these applications is critical. Enhanced connectivity will enable real-time data processing and analytics, fostering innovation in sectors such as agriculture, healthcare, and smart cities.

Market Challenges

• High Infrastructure Costs:The deployment of 5G infrastructure in Vietnam is hindered by high costs, estimated at around $3.5 billion for comprehensive network rollout. This includes expenses related to upgrading existing towers and building new ones. With the average revenue per user (ARPU) in the telecom sector at approximately $6.00, operators face challenges in justifying these investments without substantial increases in user adoption and revenue.
• Regulatory Hurdles:Regulatory challenges pose significant barriers to the 5G rollout in Vietnam. The licensing process for telecom operators can take up to 10 months, delaying network deployment. Additionally, spectrum allocation policies are still evolving, with only 120 MHz of spectrum allocated for 5G as of future. This limited availability can restrict operators' ability to provide comprehensive 5G services, impacting overall market growth.

Vietnam 5G Core Market Future Outlook

The future of the Vietnam 5G core market appears promising, driven by increasing investments in telecom infrastructure and the government's commitment to digital transformation. As urbanization accelerates and consumer demand for high-speed internet rises, the adoption of 5G technology is expected to expand significantly. Furthermore, the integration of advanced technologies such as edge computing and network slicing will enhance service delivery, positioning Vietnam as a competitive player in the regional digital economy landscape.

Market Opportunities

• Development of Smart Cities:The Vietnamese government plans to invest $1.2 billion in smart city projects in future, creating opportunities for 5G technology to support urban infrastructure. Enhanced connectivity will facilitate efficient public services, traffic management, and energy consumption, driving demand for 5G solutions in urban areas.
• Partnerships with Tech Companies:Collaborations between telecom operators and technology firms can accelerate 5G deployment. With over 250 tech startups in Vietnam, partnerships can leverage innovative solutions to enhance service offerings. Such collaborations are expected to drive the development of new applications, particularly in sectors like healthcare and education, fostering market growth.