FAR EASTERN UNIVERSITY

MAKATI
MASTERS IN BUSINESS
ADMINISTRATION

STRATEGIC AND TACTICAL CHANGES VIETTEL

SHOULD IMPLEMENT IN ORDER TO ACHIEVE TARGET
EXPANSION AND GROWTH

Submitted by:
Hua, Dinh Sao
April , 2015

Contents
I. INTRODUCTION........................................................................................................ 5
Company History........................................................................................................ 5
History........................................................................................................................ 6
Leaders....................................................................................................................... 8
Overseas Branches..................................................................................................... 8
The branch in Vietnam............................................................................................... 8
Reward....................................................................................................................... 8
Business Activities...................................................................................................... 9
Achievements............................................................................................................. 9
Links with Google..................................................................................................... 11
Diagram organizational structure of Viettel..............................................................11
Functions and responsibilities of each department..................................................12
Several departments in corporations.......................................................................15
GOVERNAN POLICY................................................................................................... 17
Organizational structure model inside Viettel...........................................................18
Hardware and software of an organization...............................................................19
Change before being forced to change....................................................................20
IT is the core............................................................................................................. 20
Using culture to fill the hole system.........................................................................20
Difficult to maintain unity......................................................................................... 20
II. INDUSTRY SECTOR ANALYSIS................................................................................ 21
Key Market Developments........................................................................................ 42
III. Industry Trends & Developments.........................................................................42
Mobile....................................................................................................................... 42
3G............................................................................................................................. 45
Mobile Broadband..................................................................................................... 46
WiMAX...................................................................................................................... 46
LTE............................................................................................................................ 47
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IV. COMPETITOR ANALYSIS........................................................................................ 47

Company TOWS analysis:......................................................................................... 47
Vietnam Posts and Telecommunications Group........................................................49
MobiFone.................................................................................................................. 50
VODACOM................................................................................................................. 52
Amrica Mvil........................................................................................................... 55
Why Viettel does investment to Africa and South America.......................................60
Why does Viettel chose Peru ?..................................................................................60
V. Demographic Forecast.......................................................................................... 61
Vietnam Demographic Forecast................................................................................ 61
VI. COMPANY AND COMPETITOR FINANCIAL ANALYSIS.............................................64
Tactical of Viettel...................................................................................................... 66
Action Plan for 2015................................................................................................. 70
VII. PROBLEM STATEMENT........................................................................................ 71
VIII. RECOMMENDATION............................................................................................ 71
A.VISION & MISSION................................................................................................. 71
The strategy pursued and specific measures in the process of implementing the
strategy.................................................................................................................... 74
Execution Framework............................................................................................... 77
Vision & Mission:....................................................................................................... 78
BALANCED SCORECARD........................................................................................... 79
IX. FINANCIAL PROJECTION....................................................................................... 83
X. CONCLUSION........................................................................................................ 87
XI. REFERENCES....................................................................................................... 88

I. INTRODUCTION

Company History
Viettel Mobile (Viettel) is now defense economy 100% stateowned, is responsible for inherited the rights and obligations of
legal and legitimate interests of the corporation Viettel. Viettel
Mobile (Viettel) implemented by the Ministry of Defense and the
rights owner is a business enterprise in the military postal sectors
- telecommunications and information technology. With the slogan
"Let's talk your way", Viettel tries development efforts firmly
during operation.
Viettel Telecom Group and Information Technology in Vietnam,
and was rated as one of the telecom companies can speed
world's fastest growing and one of the Top 15 Telecom companies
worldwide the number of subscribers. Currently, Viettel has
invested in seven countries on three continents Asia, the
Americas, Africa, with a total population of over 190 million. In
2012, Viettel revenues of $ 7 billion to more than 60 million
subscribers worldwide.
Laos - Unitel
Cambodia - Metfone,
Russia - MTS,
Qatar - Qtel ,
Peru Viettel Peru or Bitel,
Mozambique - Movitel,
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Haiti - Natcom

History
June 1, 1989, the Corporation Electronic communication devices
(SIGELCO) was established, the forerunner of Viettel Mobile
(Viettel).
1990 to 1994, Construction microwave teeth Ba Vi - Vinh for the
General Post Office. Construction microwave largest broadband
(140 Mbps), the highest building antenna tower Vietnam at that
time (125).
In 1995, Viettel is the only enterprise licensed full service
business telecommunications services in Vietnam.
1999: Complete fiber backbone 2.000km north - south to
2.5Mbps capacity and high technology in Vietnam with the
successful application of innovative collection - played on an
optical fiber [7]. Establish Center Viettel Post
2000: Official Telecommunications market participants broke the
monopoly of VNPT. First enterprise in Vietnam provide voice
services using IP technology (VoIP) across the country [8].
Successful installation of cell towers Lao National Television 140m.
2001: Providing international VoIP services.
2002: Providing Internet access service.
January 2003, The construction of fiber optic lines North-South
Military 1B.
February 2003, renamed Telecommunications Company under
the Army Corps Information.
March 2003: Provides landline (PSTN) long in Hanoi and Ho Chi
Minh.
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 April 2003, Begin installation of mobile phone networks.

October 15, 2004: Providing mobile services. International fiber
port.
April 2004, the establishment of the Military Telecom Company
under the Ministry of Defense
2005: Provides a virtual private network services.
2006: Investing in Laos and Cambodia.
2007: 3 Convergence of fixed services - Mobile - Internet.
In 2007, founded the company Viettel Technology (now the
Institute of Research and Development Viettel)
2008: Located in the 100 largest telecom brand in the world. No.
1 in the telecommunications infrastructure Cambodia. Viettel top
100 most prestigious brands in the world (Informa Telecoms
Business and intangible 2008).
2009: Viettel become economic groups, with Vietnam's largest
3G network and is the only network in the world when the
opening was covered by 86% of the population. Viettel Award: The
Best Service Provider of the Year (Frost & Sullivan Asia Pacific ICT
Award 2009) .Viettel Award: The best offer in the market is
growing (The World Communications Awards 2009).
2010: Investing in Haiti and Mozambique. Number 1 in
Cambodia on both revenue and subscriber and infrastructure.
Brand Metfone Viettel Cambodia prize: the best service providers
in emerging markets (Frost & Sullivan Asia Pacific ICT Award
2010).
In 2010, converted into Viettel Mobile under the Ministry of
Defense.

 2011: No. 1 in Laos on both revenue and subscriber and

infrastructure. Brand Metfone Viettel Cambodia award: best
suppliers in developing markets (The World Communications
Awards 2011).
In 2011, the official operator Viettel production line
telecommunications equipment most modern Southeast Asia.
2012: Trade hieuUnitel Viettel in Laos awarded the best service
providers in emerging markets (The World Communications
Awards in 2012). Brands of Viettel Movitel in Mozambique Award:
businesses the best solutions to help improve telecommunications
in rural Africa.
2013, foreign investment revenue of $ 1 billion milestone
officers.
Leaders
General Manager: Major General Nguyen Manh Hung, Deputy
Chairman of Military Commercial Joint Stock Bank, Deputy Party
Secretary
Deputy Director: Major General Le Dang Dung, Party Secretary
Deputy Director: Major General Duong Van Tinh
Deputy Director General: Colonel Tong Viet Trung
Deputy Director General: Colonel Hoang Cong Vinh
Deputy Director General: Colonel Hoang Son

Overseas Branches
Branch in South Africa
Office in Republican of Haitti
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 Office of the Republic of Kenya

The branch in Vietnam
Viettel has branches in all 63 provinces in the country.

Reward
Third Independence Medal (2009)
Hero of the People's Armed Forces (2014)
Hero of Labor 1996-2005 period (2007)
Hero of Labor (2011)
Third Class Labor Medal (2008)
Sao Khue Awards (2007)
National Brand (2010)
Business Activities
Provide Telecommunications Services
Transmission
Postal
Distribution terminal
Financial Investment
Communications
Investment in Real Estate
Export
Foreign Investment
9

 Printing

Achievements
In Vietnam
No. 1 mobile service in Vietnam (end of 2009 more than 47.6
million subscribers and more than two-dimensional works of 24.7
million subscribers Registered)
Number 1 on the growth of mobile services in Vietnam (2005,
2006, 2007).
Number 1 in speed fiber optic transmission in Vietnam.
Number 1 on the distribution network in Vietnam.
Number 1 on technical breakthroughs: collection - play on an
optical fiber. VoIP.
Number 3 on the scale of customer care call center in Vietnam.
2013, Honours Business Taxes most closed Vietnam by Vietnam
Report and Taxation awarded
In the S.E.A
As one of Vietnam's telecom business direct investment abroad.
As mobile networks are popular in Cambodia.
On world
Within 100 brands world's largest telecommunications
Reaches the top 20 largest carriers
Service Provider of the Year in emerging markets in systems
Frost & Sullivan Award Asia Pacific ICT Awards 2009

10

Human Resources and Finance

Human Resources
Charter Capital
2000 was 2.3 billion
2010 was 22.000 billion
2013 was 85.000 billion
2014 was 100.000 billion
Revenue and Profit
Revenue
1990: 1.461 billion
1995: 13 billion
1999: 36 billion
2010: 60.000 billion
2012: 140,000 billion
Profit
1990: 125 million
1995: 620 million
1999: 790 million

Links with Google

September 2007, at the annual meeting by the Organization
Network Management Asia Pacific organizations, Viettel has an
agreement with Google to implement a peer connection between
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two providers. Complete connection to December 31, 2007. From

01 May 01 2008, the use of Internet services Viettel will be used
to connect directly to Google without transit through the
intermediary service providers other.
Diagram organizational structure of Viettel

As reported restructuring, Viettel will continue to do business in

multiple industries, for telecommunications and information
technology is a core business, ensuring the proportion of industry
structure and the structure of capital in and out primary business
is not less than 70/30, the direct implementation of the national
defense and security.
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The parent company directly perform business activities, while

implementing guidance, navigation and control closely the
member units through strategic, financial and senior personnel,
investment, shopping ...

Functions and responsibilities of each department

The Board of Directors of the corporation include:
1 General Director ( Mr. Nguyen,Manh Hung)
5 Vice General Directors in charge of the total field:
Technical. (Mr. Nguyen,The Nghia)
Infrastructure development. ( Mr. Cao,Anh Son)
Business. (Mr. Nguyen,Viet Dung)
Sales. ( Mr. Bui,Quang Tuyen)
Financial. (Mr. Pham,Dinh Dang)

General Director

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- Administer use of labor resources to perform the tasks of

production and business and other duties assigned by the
corporation for the corporation.
- Manage the entire business operations of the company,
including the areas of operational management plans,
materials properties, financial management, administration
and management of the marketing plan, sales management
and customer care, technical management.
- Organization and administration: administrative law, the
work of the party, mass political work in the branch, the
company built a strong unit comprehensive routine own
working style regulations, management discipline, complete
all assigned tasks.
- Responsible for general, responsible for the corporation
before the results of operations and business sectors and the
entire management of the branch.
- To direct operating the finance department.

Vice General Directors

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- Each vice president in charge of each area

- Assist the Director of the company organization and
management activities in the field of company
- Responsible for the organization and implementation of
production and business activities in the company
- Direct operating departments under the jurisdiction of such
deputy director of management

Total child companies are divided into 5 groups:

- Agencies of corporations.
- Volume units.
- Dependent accounting units.
- Independent accounting unit.
- Companies has no dominant capital of the corporation.
- Office of the corporation.

Several departments in corporations

Division of labor organizations
- There is tasked to advise the company's leadership in working
to recruit, organize, train personnel.
Set the incentives for officials and employees, the reward
policy ...

15

Training of human resources to ensure the achievement of

company objectives outlined
Political Division
- Responsible for political work, the work of Communist Party
Management, training and retraining of employees in the
company
Administrative Office
- Perform duties of employees, wages and security clerical
work, drive ...
- Coordinate with other departments synthesis of content,
data reporting, preparation of program directors to work,
urging the implementation of the work of organizing
activities, monitoring and management of security and
control investigation supplies, sanitation, management fees
paid regular office, organize logistics.
- Receive and transfer of dispatch documents and seals,
setting records management system in accordance with the
provisions of clerical work security ...
- Manage used motor vehicles, vehicle records management,
vehicle
registration,
check
the
warranty,
vehicle
maintenance as required, the driver serves the Board of
Directors and departments within the company according to
the questionnaire .

Planning Division
- To advise the board of directors of the business strategy and
objectives in the future

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- Responsible for the planning and business strategy for the

company as the business strategy of the stage, plan short
term, medium term and long term for all the activities of the
company
- Testing and evaluation of the implementation plan of the
company.
Financial Division
- Responsible for managing material assets in subsidiaries.
- To monitor the accounting of revenues and expenditures, results
of operations branch.
- Reporting business results, evaluate the effectiveness of
business operations at the end of monthly or quarterly.
Investment Division
- Planning Strategic Planning productive investment business
short term and long term of the company, the directors
decided to advise the director but issues related to
investment
- Planning to invest in the company, the base unit according
to the business plan from time to time, short-term planning,
long-term, facilitate business done most effectively.
- Coordinate with other departments to make good investment
plan, the company's business.
Board of internal control
- Check and supervise all activities of the company
- Provide advice to the board of directors on audit issues and
rationality in the management of the company

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GOVERNAN POLICY
Viettel Corporation is also the first unit operates under the
corporate model under the ministry. Due to the special
mechanism of the military should not have Viettel Corporation
board that Party Group will perform the role and functions like a
board in the current economic groups co.Viettel business in
multiple industries such as telecommunications service providers,
transmission, postage, real estate, telecommunications and ... in
which information technology is a core business. With a team of
over 43 thousand employees and to date, Viettel has been
present in 6 countries (Cambodia, Laos, Haiti, Mozambique, Peru
and East Timor).
To serve the management, production, sales, Viettel has built
organizational structure mixtures, namely model structured and
structured products ly.Voi address each subsidiary is an entity
independent, built on part of the product or geography and
responsible for the results of each business unit. Viettel
headquarters just outside oversight of subordinate units and
support units to advise on financial and legal ...

Organizational structure model inside Viettel

Viettel business activities in many areas, the specialization of
each product and service business is essential, in which the unit
will be completely independent of their products. And just so
focused highest performance.

Viettel Telecom Company

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 Company Viettel Network

Investment Company Real Estate business and Viettel

The company develops new services Viettel

Training Center Viettel Football

Viettel Branch 63 provinces / cities

Company Trade & Export Viettel

Co. 1 Member Information M1

Co. 1 Member Information M3

General Postal Corporation Viettel

Design Consultancy Company Viettel

Investment Corporation International Viettel

Works Corporation Viettel

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 The company Viettel IDC

Research and Development Institute Viettel

Hardware and software of an organization: Hardware

includes
organizational
structure,
systems,
procedures,
regulations, reporting channels, communication channels,
licensing mechanisms, exchange mechanism, incentive plan. The
software includes the values, beliefs, lifestyles, behavior norms,
action guideline, cultural, formal meetings and informal leaders,
these dialogues. The best way to long-term stability is constantly
changing: As businesses grow, will appear ideological
bureaucracy, lack of intimacy between the leaders of the people
at the bottom and will lead to reduction of power the organization.
Viettel soon saw that this should be the choice of Viettel is
constantly changing to organizations accustomed to change. And
each change is one "shake care" to the organization leaner, more
rational, more effective.
Change before being forced to change: In the competitive
environment changes happening every day, every hour. Viettel to
frequent changes to adapt to the environment instead of thinking
doi.Lien continue to adjust the strategy and the organizational
structure accordingly. So mastered the process and keep stable.

IT is the core: No difference means death. In the 2G era,

differences of Viettel is phu.Nhung to the 3G era, the main
difference is that the VAS services - IT products. Coverage may be
learned but VAS or in other words, IT is not learned because it is
intellectual, is the creative class is. The lifeblood of today's
20

telecommunications company (which is based on voice and text

messaging) has started to dry kiet.Viettel created path, but we
also have to create content that runs on the road.
Using culture to fill the hole system: An organization is only
maintain their culture as the problem of its behavior based on
cultural facilities. The culture of an organization can only spread
and meaningful as it often is used to modify the system's
vulnerabilities. Each member of the organization, understand the
true value of culture as cultural institutions that appear frequently
in all areas, all activities of his organization.
Difficult to maintain unity: Difficulties with the new staff
concerns, thoughts. Difficulties requires that we must collectively
and efforts, the shoulder, share and encourage the synergies
nhau.Kho towel, half heart, half position to solve. People just
really sticking together when really difficult. When standing in
front of the difficulty, humans tend to find those comrades
huong.Con when no difficulty, people just tend to find fellow
hobby only.

II. INDUSTRY SECTOR ANALYSIS

A. Overview economy
Economic growth reached its highest level in 11 years from 2003
(2003 rose 8.15%, 5.76% increase in 2004, 2005 increased by
4.77%, 6.79% increase in 2006, rising 6.89% in 2007, 2008 7:08%
increase, rising 2009 7:34 %, 7.79% increase in 2010, 2011
8:43% increase, rising 17.8% in 2012, 2013 8:48% increase). GDP
21

at current prices is estimated at 1.141 trillion per capita reached

13.4 million.
In 2007, the sector of agriculture and forestry - fishery due to
natural disasters, epidemics and low density should increase in
GDP has fallen below 20%. Group industry - building up the
highest proportion of GDP increased and reached 42%. Service
sector was higher than the overall rate, the proportion of GDP
reached 38% and is the 3rd consecutive year increase after 10
years of decline.
This tendency is consistent with the boost phase of
industrialization, modernization and open integration. Foreign
capital investment reached a new record at 3 Sources.direct
investment registered and additional reach 20.3 billion, up 68.8%
from the record achieved in the previous year, capital currently
estimated at 4.6 billion, an increase of 0.6 billion over the
previous year. The capital of official development assistance
commitments and disbursement record (4.4 billion and $ 2
billion), is committed to a new record in 2012 (5.4 billion USD).
Source indirect investment is estimated at $ 5.6 billion, 4.3 times
larger than the previous year.

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B. Since 2008 - Telecommunications market growth

In 2012, the ICT of Viet Nam kept showing a growth with a
number of important achievements. This was regarded as a
highlight of the economy of Viet Nam in the context of the
economic recession.
The telecommunications and Internet infrastructure in Viet Nam
has been continuously invested to catch up with the trend of the
growth of telephone and Internet subscribers. Up to December
31st, 2012, the total number of telephone subscribers in the
country reached more than 141 million, including 9.5 million
fixed-line telephone subscribers and 131.6 million mobile
subscribers. Although the development of the telephone
subscribers demonstrated a level off due to the market
23

saturation, the numbers of mobile and Internet subscribers

continued to rise at a rate of 3.42% and 2.46%, respectively
compared to those in 2011.
Most notably in 2012, the number of the fixed Internet broadband
subscribers increased remarkably by 24.74% with nearly 4.8
million subscribers. Besides, the number of 3G subscribers
declined from 16 million to 15.7 million. This doesnt result from
the decrease of actual number of 3G subscribers but from the
aggressive cut of inactive subscribers from the network. In fact,
the number of 3G subscribers continued to increase due to the
policies of telecommunication service providers, for example: the
reduction of the 3G service cost to make it more competitive than
the ADSL service. Moreover, the downward trend in the prices of
3G terminals and the impact of the convergence of electronics telecommunications - Internet are also contributing to the growth
of 3G subscribers.
In spite of facing difficulties and challenges caused by the
economic crisis, the IT industry kept being a high growth - rate
economic sector. This sector simultaneously has asserted a
diffuse impact on boosting other sectors and fields of the
economy and society and create more jobs and improve abourers
income. The total revenue of IT industry in 2012 reached about
25.5 billion USD, an increase of 86.3% compared to the same
period of 2011. In particular, the hardware - electronics industry
continued to thrive thanks to a considerable growth of export. The
hardware - electronics industry revenue in 2012 represented 23
billion USD (a growth rate of 103.2% compared to last year),
making up 90.4% of total revenue of the IT industry sector, thus
raising the average revenue per employee per year in this sector
up to more than 110 thousand USD over the past 5 years.
This made this group become one of the largest export sectors of
the country. The sector of foreign direct investment contributed
96.5% to the value of the export of computers, electronic devices
24

and components produced in Viet Nam with some typical

enterprises such as Samsung, Intel, Canon, Panasonic, Foxconn,
Nokia, etc. whose main markets include China, Malaysia, Japan
and EU. In 2012, the value of export surplus numbered 3.6 billion
USD (8 times as much as that of 2011). Meanwhile, facing many
difficulties and challenges on account of the downturn of the
economy and domestic market, the software industry didnt
maintain the sharp rise in comparison with the previous years. In
fact, the revenue of the software industry in 2012 amounted to
only over 1.2 billion USD, an increase of 3.1% compared to 2011.
Although, the rate of the whole software industry remained a
slight increase, the significant rise of the revenue of outsourcing
compensated the market decline of the software expenditure in
the domestic market. The revenue of the digital content industry
was also negatively affected by the economic downturn with its
revenue representing 1.24 billion USD, a 6.0% increase compared
to 2011. This revenue was mainly contributed by 03 leading
enterprises like VNG, FPT and VTC.
As for IT application, by the end of 2012, 100% of state agencies
built websites/portals which provided nearly 102 thousand public
services at level 1 and 2 (an increase by roughly 3.4 thousand);
1.7 thousand public services at level 3 (an increase by 802), and 9
public services at level 4. In particular, this is the first year some
units have started to deploy the digital signature application and
focused on a number of specialized databases. Typically, the
ranking of the level of IT application in 2012 showed in the group
of ministries, ministerial-level agencies, the Ministry of
Information and Communications improved its ranking from 7th in
2011 to 01st in 2012, while the State Bank had a leap by 9
positions in the ranking (from 12th position in 2011 to 3rd position
in 2012). At the same time, in the group of provinces, Da Nang
city continued to hold the highest position owing to its

25

determination of investment and concerted solutions on IT

application.
Information security assurance is the most concerned problem to
protect the infrastructure security, ensure the sustainable
development of IT application in particular and the development
of the whole sector in general. The Ministry of Information and
Communications in cooperation with related agencies has actively
been building and completing the Law on Information Security in
order to pave the way for the legal framework of this sector.

26

27

C. EVALUATIONS OF SOME INTERNATIONAL ORGANIZATIONS ON

VIET NAM ICT
Located in Southeast Asia, Viet Nam has always been appreciated
not only for the economy with high growth rates but also for the
development of the ICT sector with impressive ranks on the world
ICT map. Despite experiencing 10 years of development, the ICT
in Viet Nam has obtained a number of achievements which are
recognized by international organizations. The related reports in
2012 or in the recent years has appreciated the accomplishments
of the ICT in Viet Nam.
a. General rankings on ICT a) ICT Development Index (IDI)
According to the ranking of the report on Measuring of Information
Society by the International Telecommunication Union (ITU), the
ICT Development Index of Viet Nam continued to rise 5 places
from 86th to 81st, ranked 4th in the Southeast Asia and ranked
12th among 27 countries in the Asia - Pacific region. In the past
10 years (2002-2012), Viet Nam had a spectacular breakthrough
from position 107 to position 81 with a jump of 26 steps. The IDI
ranking is based on 3 main sub indexes such as ICT assess, ICT
use and ICT skills where Viet Nam was highly rated by ITU in
terms of IT applications with a rank of 76th among 161 countries
worldwide in 2012.
The table below lists the IDI ranks of Viet Nam and the Southeast
Asian countries in the past 10 years.

28

b. Networked Readiness Index (NRI)

According to the ranking released in the Global IT Report by the
World Economic Forum (WEF) annually, the NRI of Viet Nam
represented a dramatic improvement in the period 2001-2011
with a jump of 19 steps from rank 74 to rank 55 worldwide.
However, from 2012, the changes in WEFs methodology in
evaluating have made NRI ranks of Viet Nam and many countries
fall compared to those of the year 2011. On the other hand, Viet
Nam stands in the 5th position in the Southeast Asia. WEF
evaluates the Networked Readiness Index based on 4 sub indexes
such as government readiness, individual readiness, business
readiness, ICT impact (lately added in 2012). In this evaluation,
the readiness sub index of the Viet Nam Government was ranked
highest out of sub indexes forming NRI.
The table below lists the NRI ranks of Viet Nam and the Southeast
Asian countries from 2001 to 2013.

29

c. Rankings on IT industry IT industry

in Viet Nam has been recognized with outstanding achievements.
According to the ranking of A.T. Kearney biannually, in 2005, Viet
Nam was ranked at the average level among the leading
countries in offshore services with the 26th position among 50
countries. However, in 2011, Viet Nam was ranked 8th out of the
top 50 countries in offshore services, an increase by 2 places
compared to the year 2009, by 11 places compared to the year
2007 and by 18 places compared to the year 2005, and Viet Nam
took over Philippines and came close to Thailand. In its ranking,
A.T. Kearney evaluates countries based on 3 sub indexes such as
financial attractiveness, people skills and availability, business
environment. Viet Nam leads in the financial sub-index in this
assessment.
The table below lists the ranks on IT industry of Viet Nam and
some countries worldwide from 2005 to 2011.

30

d. Rankings on E-government development In the EGovernment

Survey biannually released by the United Nations (UN), EGovernment in Viet Nam is evaluated fairly good and has a
remarkable advance in both its index value and rank. Over the 10
years, the ranking of E-government of Viet Nam has increased by
14 positions from ranking 97 in 2003 to 83 out of 150 countries
throughout the world and hold the 4th position in the Southeast
Asia in 2012. UN evaluates this index based on 3 components:
online services, telecommunications infrastructure and human
capital. In this index, Viet Nam is rated prominently in public
online services.
The table below lists the ranks on E-government of Viet Nam and
the Southeast Asian countries from 2003 to 2012.

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e. Rankings on Internet development

Viet Nam has been appreciated as one of the nations which have
the fastest growth rates of the Internet users annually. In the past
5 years, according to the Internet statistics at website
www.internetworldstats.com, Viet Nam always stood within the
top 10 countries in the Asian region and currently ranked 3rd in
the Southeast Asia in terms of the number of Internet users with
31 million people until June 30th, 2012

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f. Market Shares (subscribers) of Telecommunications and

Internet operators in 2012

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Key Market Developments

New subscribers to prepaid mobile services in Vietnam will be
charged a one-off activation fee of VND25,000 (US$1.20) per SIM
card, reports TeleGeography. According to the VietNam News, the
move is aimed at curtailing the temporary use of SIM cards to
take advantage of promotions offered by wireless operators. The
one-time subscription cost for postpaid services will remain at
VND30,000(US $1.44).
Dong Duong Telecom and Vietnam Multimedia Corporation (VTC)
have been asked by the country's communications ministry to
give an explanation regarding the delay in the launch of MVNO
services, according to the head of the ministry's telecoms
department, Pham Hong Hai. Dong Duong Telecom and VTC
secured MVNO licences in August 2009 and in June 2010
respectively. The telecoms department was instructed to recall
the MVNO licences of these firms in 2011. However, the
department did not go ahead with this action seeing as these
firms had given reasonable explanations. Hai said the ministry
would recall the MVNO licences if the firms fail to report any
advancement.
The Vietnamese government will delay the award of LTE 4G
licences until 2015. It concluded that the market is not ready for
the high-speed services. Five mobile operators have been running
LTE trials for over a year, and the fact that the uptake of 3G
services has been slower than expected suggests that the LTE
market would experience a similar growth trajectory.

III. Industry Trends & Developments

Mobile

42

Vietnam's General Statistics Office (GSO) and the Ministry of

Information and Communications (MIC) have provided conflicting
data on the mobile sector. The GSO reported that there were
117.6mn mobile subscribers at the end of December 2011. By
comparison, the MIC said there were 127.3mn subscribers in the
same period. However, this was an improvement from the
previous year when the GSO and the MIC said that there were
153.7mn and 115.6mn mobile subscribers respectively in the
country in 2010. The improvement came after a drastic revision of
data by the GSO in May 2011 where the number of mobile
subscribers declined to 112.3mn from 157.8mn in April 2011. We
believe the GSO figures, which are published on a monthly basis,
could be used as a relatively reliable source for monitoring market
growth.

43

Data from the GSO showed that there were 120.7mn mobile
subscribers in Vietnam at the end of September 2012, unchanged
from June 2012 and up from 115.2mn in September 2011. Strong
competition between operators and aggressively low tariff rates
have pushed the Vietnamese mobile industry towards market
saturation and declining profitability. Further evidence of a growth
slowdown includes operators such as Viettel and the Vietnam
Posts and Telecommunications Group looking at overseas
markets for additional growth opportunities.
We do not expect the Vietnamese mobile market to return to
double-digit growth (at the end of September 2012, the market
expanded by 4.8% y-o-y, down from 7.2% the previous quarter),
given that the country's subscriber growth is rapidly shrinking.
While rural regions possess growth opportunities, the return on
44

investment is comparatively low due to the need for the highest

capital expenditure and lower purchasing power.
In this quarter's update, we have extended our expectations to
2017, and we continue to forecast muted growth in the
Vietnamese mobile sector in light of the high penetration rate. We
expect the market to expand by 4.5% in 2012, down from 5.4% in
2011. We forecast the sector to grow by 3% in 2013 before
increasing by 2% annually from 2014 to 2017. By end-2017, we
predict 137.0mn mobile subscribers in Vietnam, representing
145.6% penetration rate.
According to the MIC, there were 16.0mn 3G subscribers in the
country in May 2012, up from 13.3mn in December 2011. The
growth was attributed to the increasing coverage (91.5% of
Vietnam via 33,700 BTS) as well as discounts by mobile
operators. The MIC and Vietnamese operators do not release 3G
operational data on a regular basis. Consequently, there is a lack
of new data since our previous update. We have retained our
previous forecast of 25.1mn subscribers in the country in end2013 with operators building on the positive consumer response
and continuing their strategy of attracting subscribers. However,
we continue to urge operators to bolster their portfolio of local
content to meet the unique demand of consumers. By end-2017,
we forecast 35.3mn 3G subscribers in the country, representing
37.5% penetration rate.

3G
Following a tender in the early part of the year, it was announced
in June 2009 that four Vietnamese companies had won a total of
three 3G mobile concessions. These concessions were finally
issued to the winning operators in August 2009. The recipients of
Vietnam's first 3G licences are military-owned Viettel, the
Vietnam Posts and Telecommunications Group (VNPT)'s
subsidiaries MobiFone and VinaPhone, and a JV between EVN
Telecom and Hanoi Telecom. According to their licence
45

obligations, over the next three years ended 2012 the operators
will invest a combined VND33trn in their 3G networks, with a total
of 30,000 base transceiver stations. As of June 2010, the
operators had deposited VND8.1trn with the Ministry of
Information and Communications (MIC), accounting for onequarter of the total.
Although applications were received from six operators, a lack of
available spectrum was the deciding factor behind 3G licences
being limited to three. Operating on the 1900-2200MHz band of
frequency, the MIC's Deputy Minister Le Nam Thang said splitting
the available frequency any further would result in 3G
services becoming ineffective and had followed the global norm of
four licences.

Mobile Broadband
Mobile broadband is attractive as Vietnam has a weak and
unreliable fixed-line infrastructure, which makes connecting to the
internet difficult. According to the Vietnam Posts and
Telecommunications (VNPT), MobiFone and VinaPhone had
almost 10mn mobile broadband subscribers in December 2011,
with more than 15,000 3G base stations providing nationwide
coverage. If true, this indicates the popularity of mobile
broadband technology in light of the fact that there is less than
half the number of fixed broadband subscribers.
The relatively low level of fixed network infrastructure in Vietnam
has meant that wireless technologies are developing as an
important platform for delivering fixed broadband services. The
two most important technologies are WiMAX or LTE, both of which
will be used to offer 4G mobile broadband services.

WiMAX

46

The Vietnamese government first gave the go-ahead for the

launch of a pilot WiMAX project in February 2006. The Ministry of
Information and Communications (MIC)'s predecessor, the
Ministry of Posts and Telematics (MPT), granted approval for three
service providers -VNPT, FPT Telecom and Vietnam Television,
Technology, Investment and Development Company (VTC) to launch the pilot project, which it hoped would encourage
development in the country's telecom and internet markets.
In March 2006, the Ministry awarded the country's fourth WiMAX
licence to military-owned operator Viettel. The first WiMAX trials
began in October 2006 with Vietnam Data Communication
(VDC), the wholly owned subsidiary of VNPT, partnering with Intel
to conduct the trial in the mountainous province of Lao Cai. Then
in December 2006, Viettel announced plans to commence a trial
offer of WiMAX mobile broadband service in the city of Hanoi. The
pilot network would consist of 10 base transmitter stations (BTS)
and would have a capacity of around 3,000 subscribers; it would
offer speeds of up to 10Mbps within a 32km range of a BTS.

LTE
Despite the apparent preference for WiMAX in Vietnam, the
government also wanted to pave the way for the deployment of
mobile broadband services based on LTE. In September 2010, the
MIC granted 4G licences to five companies: the VNPT, Viettel, FPT
Telecom, CMC and VTC. According to the terms of the licence
agreements, the companies would be allowed to operate LTE
networks over a trial period of 12 months. The MIC's
Telecommunications Department director said that operators
would be required to participate in an auction in order to be
granted a 4G licence. They would be able to transfer the
frequency bands after receiving the licences. However, only two
operators: VNPT and Viettel have to date launched services, albeit
on a trial basis. According to licence conditions, operators are
required to launch services within a year of acquiring a licence.

47

In late 2012, the MIC reaffirmed its decision to hold back 4G

licence auction, although the timeline hasnbeen shifted to after
2015. Vietnamese operators have resorted to price competition to
attract 3G subscribers and we believe that the industry would go
down the same path if it were to introduce LTE services in the
near future. According to Vietnam's Radio Frequency Department,
Vietnam uses about 20 terabytes (TB) of data a year, which is well
below the global average of 3.8 exabytes (EB, equivalent to
3.8mn terabytes).

IV. COMPETITOR ANALYSIS

Company TOWS analysis:

Strengths
Licence to offer fixed-wireless, mobile and value-added services.
Low tariff structure.
Nationwide coverage.
Mobile market leader.
Weaknesses
Network currently has limited capacity.
Relatively small fixed-line market share.
Behind rivals VinaPhone and MobiFone in terms of 3G subscriber
figures, having commenced services relatively late to the market.
Opportunities
Nationwide coverage should guarantee substantial market share
in the medium term.
48

 Won license to test WiMAX and LTE mobile broadband services.

Given the approval by the Vietnamese government to acquire
EVN Telecom
Threats
Connection difficulties could prompt potential subscribers to opt
for alternative networks.
Influx of new mobile entrants likely to lead to pricing war.
Competition is increasing in the wire line sector.
Mobile market is showing signs of saturation.

Vietnam Posts and Telecommunications Group

49

Vietnam Posts and Telecommunications Group, commonly

abbreviated as VNPT, is a telecommunications company, owned
by the Vietnamese Government, and the national post office of
Vietnam. According to a list of UNDP in 2007, it is the secondlargest company in Vietnam, just after the Vietnam Bank for
Agricultural

and

Rural

Development.

It

owns Vinaphone and MobiFone, two of the three largest mobile

network operators in Vietnam.
The main business activities of VNPT include financial investment
and capital trading in domestic and foreign markets; post,
telecommunications, IT and backbone-based services in domestic
and

foreign

markets,

communications,

and

advertisements;

exploration, consultation, design, installation and maintenance of

telecommunications and IT works; manufacturing, production,
import-export and supply of telecommunications and IT materials,
and equipment; and office and real estates for release.

Vietnam Posts and Telecommunications Group was established

under Decision No. 06/2006 / QD-TTg dated 09/01/2006 of the
Prime Minister of Vietnam on the establishment of the parent
company - Vietnam Posts and Telecommunications Group.

50

Charter Organization and Operation of the Vietnam Posts and

Telecommunications Group is attached to Decision No 265/2006 /
QD-TTg dated 17/11/2006 of the Prime Minister.
From 1998 to 2005, Vietnam's Prime Minister has decided to
approve the implementation of equalization in 42 enterprises and
departments of state enterprises under the Vietnam Posts and
Telecommunications Group.
Company Information Mobile, one now under VNPT, is now being
investors in domestic and international businesses interested if
this is the Prime Minister agreed in principle to allow the
equalization. This will be the mobile communication business was
privatized first in Vietnam.
On 24/6/2010, the parent company - Vietnam Posts and
Telecommunications Group converted into modeling activities
Limited liability company member State owned by Decision No.
955 / QD TTg of the Prime Minister
MobiFone

Mobile Communication Company (Vietnam Mobile Telecom

Services Company - VMS) is an enterprise-class State under
51

Vietnam Posts and Telecommunications Group (VNPT). Founded

on 16 May 04 1993, VMS has become the first business operators
of mobile communication GSM 900/1800 brand MobiFone,
marking the beginning of the mobile communications industry
Vietnam . The main field of activity is organized MobiFone building
design, network development and deployment of new service
providers in the mobile communication technology, advanced
technology and modern business information services di GSM
900/1800 mobile technology across the country.
05 On 19 May 1995, the Company signed a Mobile
Communication Business Cooperation Contract (BCC) is valid for
10 years with the Group Kinnevik / Comvik (Sweden). This is one
of the business cooperation contract is most effective in Vietnam.
Through business cooperation contract BCC, MobiFone has
enlisted significant resources to build and operate the network
and provide mobile communication services first in Vietnam,
namely: capital, technology experience management, business,
human resource training. So far, after 14 years of development
and growth, has become MobiFone mobile network in Vietnam
with over 8.5 million subscribers, more than 2,500 stations and
4,200 stores, 15,000 agents and systems retail outlets
nationwide.
MobiFone currently offers over 40 value-added services and
facilities of all kinds. Mobi-Fone relentless efforts to build
infrastructure and solid strength, ready for integration and
competition in the mobile communications market. 3,000 team
officials and staff are always willing to meet MobiFone fastest and
most effective customer requirements. In 2007, the Mobi-Fone
revenue of 14.000 billion, the largest of companies providing
mobile telecommunications services. To date a total MobiFone
than 7,000 broadcast stations (BTS) with network-wide subscriber
base of over 11 million subscribers.

52

2007 marks the second consecutive year MobiFone awarded

"Mobile networks are the most popular" award in Vietnam Mobile
Awards eChip MOBILE magazine awarded (in 3 times the
resolution was held) through the comment form selected readers
of this journal. Le Ngoc Minh, Director of MobiFone: "In 2007,
MobiFone has developed 6.4 million new subscribers, bringing the
total number of subscribers actually MobiFone up on 11.4 million
active subscribers. 2007 was also the year that churn MobiFone
very low. Thus, the number of subscriber growth in 2007
MobiFone very impressed by the number of subscriber growth
combined 13 years ago. By measuring the number of subscribers
of MobiFone service use within 1 month of MobiFone market share
in 12/2007 reached 41%. Thus, trust is Mobi-Fone mobile network
subscribers largest real activity. In 2007, the year that Mo-biFone
promote image building attached to the network quality of service
and quality customer service. This is also a step in momentum is
critical for two years in 2008 and 2009 to switch to the mobile
network subscriber saturation period.
VODACOM

53

Vodacom

Group

Limited

(Vodacom) is an African mobile

communications company, providing voice, messaging, data and

converged services to over 55 million customers. From its roots in
South Africa, Vodacom has grown its operations to include
networks

in

Tanzania,

the

Democratic

Republic

of

Congo,

Mozambique, and Lesotho and provides business services to

customers in over 40 African countries such as Nigeria, Zambia,
Angola, Kenya, Ghana, Cote dIvoire, and Cameroon. It was owned
on a 50:50 basis by the South African telecommunications
group Telkom and the British mobile phone operator Vodafone. On
6 November 2008 Vodafone announced that it had agreed to
increase its stake to 65%, and Telkom said that it would spin off its
remaining holding by listing it on the Johannesburg Stock
Exchange. On April 1, 2011, Vodacom officially unveiled its new
change in branding from blue to red, using the same style as its
parent company, Vodafone.
Vodacom provides coverage to Mount Kilimanjaro, which used to
make it the highest point in the world to be covered by GSM. It no
longer is, as TeliaSonera now provides coverage at the top
of Mount Everest, the highest point in the world. Vodacom was
aided by its optimistic advertisements at the early stages of the
democratic South Africa, this includes the yebo gogo campaign
which is still in effect today in South Africa. Vodacom is the

54

leading cellular network in South Africa with an estimated market

share of 58% and more than 23 million customers.

Vodacom

is

also

the

number-one

provider

deploying 3G, 4G and UMTS networks in South Africa and is also

offering HSPA+ 21.1 Mbit/s, HSUPA (2100 MHz) and 42 Mbit/s. LTE
should become commercially available by the end of 2012. [6] In
terms of other technology Vodacom has its hand in Wi-Fi,WiMAX
and LTE. Vodacom to date is upgrading the whole South African
system to introduce these new technologies.

In

October

2013,

acquiring Neotel in

Vodacom
potential

announced
$590

it

million

would

be

deal.Regulatory

approval by the Independent Communications Authority of South

Africa was still pending at the end of December 2014,with many
competitors not keen on it going ahead.
As at March 2014, the companies that comprised the Vodacom
Group include, but are not limited, to the following:

Vodacom (Pty) Limited - 93.75% Shareholding - South Africa

Vodacom Tanzania Limited - 65% Shareholding - Tanzania

Vodacom Congo (RDC) s.p.r.l.

- Democratic Republic of Congo

51%

VM, SA - 85% Shareholding - Mozambique

55

Shareholding

Vodacom Lesotho (Pty) Limited - 80% Shareholding - Lesotho

Vodacom Business
Shareholding - Nigeria

Africa

(Nigeria)

Limited

100%

The shares of Vodacom Group are listed and traded on the JSE,
under the symbol: VOD. The shareholding in the group's stock
was as depicted in the table below:
Vodacom Group Stock Ownership
Ran
k

Name of Owner

Percentage
Ownership

Vodafone Investments SA (Pty)

65.00
Limited

South African Government

13.91

Others

21.09
100.00

Total

Amrica Mvil

56

Amrica

Mvil is

a Mexican telecommunication

company

headquartered in Mexico City, Mexico. It is the fourth largest

mobile network operator in terms of equity subscribers and one of
the largest corporations in the world. Amrica Mvil is a Forbes
Global 2000 company. A venture of Carlos Slim, Amrica Mvil
provides services to 289.4 million wireless subscribers, 34.3
million landlines, 22.6 million broadband accesses and 21.5
million PayTV units as of the end of 2014.
The company's world headquarters are located in Mexico City,
Mexico.

Its

Mexican

subsidiary Telcel is

the

largest

mobile

operator in Mexico, commanding a market share in excess of 70

percent. The company operates in many countries in Latin
America and in the Caribbean including: Jamaica, the Dominican
Republic, ElSalvador, Guatemala, Honduras, Nicaragua, Peru, Arge
ntina, Uruguay,Chile, Paraguay, PuertoRico, Colombia and Ecuado
r under Claro subsidiaries. In Brazil it also operates under the
trademark Claroand other subsidiary Embratel. It owns 30% of
KPN Telecom in the Netherlands and has done a bid on 100% of

57

the shares. Since September 2012 it owns 23% of Telekom

Austria.
Amrica

Mvil

acquired

operator Oceanic

Digital,

100

percent

under

the

of

brand

Jamaican

mobile

name MiPhone in

August 2007. On November 15, 2005, the company signed an

international pact with Bridge Alliance to jointly deliver various
international services.
In the United States, it operates through its subsidiary TracFone
Wireless under

the

brands TracFone, NET10

Wireless, Straight

Talk, SIMPLE Mobile and Telcel Amrica. It is one of the leading

national pre-paid wireless service provider in the U.S.
As of December 2010, the company was one of the top four
telecommunications companies in the world and boasted 290,000
kilometres of

fiber

optic cable,

making it the

largest

in

infrastructure.
With annual sales of over $47 billion (As of April 2012), the
company is currently the largest company in Mexico by revenue,
more than the next five largest companies combined.
With annual profits of over $5 billion (As of April 2012), the
company is currently the most profitable company in Mexico,
more than the next three most profitable companies combined.
With assets of over $67 billion (As of April 2012), the company is
currently

the

largest

company
58

in

Mexico

by

assets

with Banorte very closely behind them with assets of over $59
billion (As of April 2012) It is highly likely that the company will
buy a group of companies with at least $29 billion in assets in
2013 in the pension, insurance, payroll, currency exchange and
mutual funds industries to secure their position as the most asset
rich company in Mexico.
With a market value of over $93 billion (As of April 2012), the
company is currently the most valuable company in Mexico, more
than the next three most valuable companies combined.
In September 2013, AT&T announced it would expand into Latin
America through a partnership with America Movil.
Lack of competition in telecommunications in Mexico is estimated
to cost the economy of Mexico $25 billion a year, although this
finding has been disputed by economists and academics such as
Hausman & Ros, where the authors conclude the opposite: there
was in fact a consumer surplus of $4 - $5 billion USD with respect
to comparable countries.
In January 2010, it made an offer to buy Carso Telecom and
Telmex

International

in

order

to

better

compete

against Spain's Telefonica and Malaysia's Telekom Malaysia. The

acquisition was approved by the CFC (Comisin Federal de
Competencia) Antitrust Office in Mexico on February 11, 2010.

59

Amrica Mvil had once been Telmex' mobile division, but since
its spinoff in 2001 it had grown far larger than its former parent.
Amrica Mvil global wireless customers
As of Dec 2014:
North America

United States - TracFone Wireless (TracFone, NET10

Wireless, Straight Talk, SafeLink Wireless, SIMPLE Mobile and
Telcel Amrica) 26.006 million
Mexico - Telcel 71.463 million

Central America and The Caribbean

Costa Rica
Dominican Republic
El Salvador
Guatemala
Honduras
Nicaragua
Panama
Puerto
Rico - Claro 19.065 million

South America

Colombia - Claro 29.776 million

Ecuador - Claro 11.772 million

Brazil - Claro 71.107 million

Chile - Claro 5.754 million

Per - Claro 12.498 million

Argentina

Paraguay

Uruguay - Claro 22.000 million

Global wireless customers 289.449 million

60

Why Viettel does investment to Africa and South America

Investing abroad is a long-term strategy of Viettel.
Viettel This is how to maintain growth and sustainable
development.
The world record for the telecommunications network of Viettel
through international awards is great fun, excitement proud of
leaders and staff of the Group, confirming direction, strategy we
are correct, reinforce our belief in the strategic foreign investors.
Viettel currently serves over 60 million customers in six markets
in three continents. Africa is a strategic market of us.
We also invest in strong fields as telecommunications.
61

However, this is the first step to creating the basis for investment
in other areas such as terminal market, market content services,
cable television ...
In addition, Viettel also provides the basis for the domestic
enterprises can penetrate foreign markets.

Why does Viettel chose Peru ?

Peru is a test to Viettel spill into the European market.

Peru's GDP per capita income higher than 3 times the density of
Vietnam and the use of mobile services already saturated, is
allowed to try to Viettel investment markets such as Europe,
America.
Peru is the first market where investors Viettel economic
conditions develop over Vietnam.
If only development in poor countries in the African region, such
as Haiti, Cameroon, Mozambique, Burundi, Tanzania, the sale will
end. So, to expand into the market with higher levels of
development.

62

V. Demographic Forecast
Vietnam Demographic Forecast
The accompanying charts detail Vietnam's population pyramid for
2011, the change in the structure of the population between 2011
and 2050 and the total population between 1990 and 2050, as
well as life expectancy. The tables show key datapoints from all of
these charts, in addition to important metrics including the
dependency ratio and the urban/rural split.

63

64

VI. COMPANY AND COMPETITOR FINANCIAL

ANALYSIS
Existing competitors in VN

65

Telecommunications market there was strong competition from

companies
such
as
telecommunications
services
MOBIFONE,VINAFONE,SFONE,GMobile
...Even
now
Viettel
dominates the market but many other phone networks are now
approaching levels balance as Mobiphone was 35%.
As the telecommunications market converges to 7 suppliers of
mobile services, but people still see difference in Viettel. They
are:
- Company with the number of mobile subscribers largest
- Company with the widest coverage
- Company with the most competitive rates
- Company with the attractive package

66

- Company with Customer-Care best policy

Business results of Viettel through 3 continents

67

Tactical of Viettel
* Intelligently
The network must be converted quickly towards IP and broadband
capable of providing all services whether it is fixed or mobile,
internet and television.
The network is managed centrally via the Operations Centre and
centralized network management, enhanced tools for design
automation and optimization of the network, now managed by IT
systems, management systems ERP enterprise resource;
The Viettel focus more on the job requires a lot of gray matter,
the job is done simply outsource, to ensure Viettel always have
the highest labor productivity in the industry.
All units have been built for your smart brain to guide and lead.
We can study the structure of human organizations to build their
own.
A smart brain but the body, arms and legs are not healthy, do not
act quickly and accurately, the body, the organization will not be
effective.
Therefore, in parallel with the construction of intelligent brains we
have built an organization of highly disciplined, act fast,
consistent and thorough.

68

* Simplify
to simplify the procedures for service delivery, simplify using
services, simplify the communication messages to
customers.
Simplification of procedures within Viettel. Regularly review
the process to remove the unnecessary,
The simplification does not mean loose management, which
is managed at the class but more closely.
*Optimization
Enhanced analysis and find new solutions to save costs, optimize
the cost of the investment and the cost of mining, in order to
reduce production costs, making telecommunication services to
suit every level income people.
Optimization is an ongoing process, because the continuous
appearance of new technologies, new ways. Optimization is not
just to reduce product costs, but also related to the optimization
to improve product quality.
Optimization also shown in optimizing business processes,
business and production processes. The process is one of the
properties, one of the biggest secrets of a business.
The process works by Viettel , Viettel have created. Optimization
will help us win the competition, because it helps us to get the
best cost, best quality.

*Personalization
Personalization is the core philosophy of Viettel. Each client is a
separate individual, they have specific needs and wants to be
served separately.
69

The new service, as well as the CCU must be tailored to suit the
different market segments.
Each Viettel is also a separate individuals to be leaders listen to
unleash their potential.

*Differentiation
Innovation creates the difference. Innovation is the vitality of
Viettel. The only thing that's infinite creativity of human beings.
Viettel now have another way to another company and will
continue to do other more creative with targeted, more effective.
Competitive strategy is our blue ocean strategy that is creating
products that others do not have, create new markets, rather than
compete with them in the traditional market.
Another approach would be more effective way.

*Diversification
Viettel have to turn the phone into a tool for living, working and
recreation, crept into every corner of human life. For the Group,
implement a strategy to diversify business lines, aimed at those
areas and future opportunities, diversification of cooperation and
ownership.

*Socialize
Viettel network has to complete 100% to the people of Vietnam,
on to the villages and hamlets.
70

The telecommunications services to suit every level of income of

the people of Vietnam.
Socialize sales with the participation of all social classes, in order
to create more jobs for the society.
Socializing the provision of services

*Internationalization
Viettel to always keep up the development of the world in terms
of technology, management, and service, especially the
transformation from infrastructure providers to the content of
information provided.
Internationalization of gray matter that is used abroad through
the sharing of experience with foreign partners, use of foreign
labor, foreign consultants, foreign cooperation.
Internationalization is not just go into Vietnam foreign investment
but also go abroad to invest. Internationalization is use language
and international law in the transaction.
Internationalization
is
become
one
of
the
largest
telecommunications company in the world. The Goal is : Viettel
Telecom became one of the 10 largest telecommunications
company in the world.

Action Plan for 2015

2015 is considered Viettel time turning a new stage of
development, depth, sustainable, more creative after the last new
starting line in 2014 before.

71

The goal is Viettel towards becoming a global corporation, is one

of the 20 largest telecommunications companies in the world in
2020. Profit and labor productivity increased by 15%-20%
compared with 2014.
Talking to reporters Investment, Nguyen Manh Hung, General
Director of Viettel said that in 2015, Viettel continue to promote
and effectively implement the strategy shift. Promote business
services, ultra-wide band, put the application of information
technology into every corner of life, expanding the international
market, increasing investment in depth research, production
equipment and all the people and military.
Just to put effort for key sectors, 2015, Viettel will divest most real
estate companies and companies not belonging to the main field,
while promoting the sale or merger of companies in the sector, in
the field of telecommunications and information technology.
In addition to the major mobile telecommunications, foreign
investment, the broadband services in health, education, social, a
business is being promoted Viettel deployed in 2015 as pay TV .

VII. PROBLEM STATEMENT

After considerable review of the strength, weaknesses,
opportunities and threats and an over-all appreciation of Jollibee
company history, owners, products and competitors we identified
a key problem that we intend to address in this paper.
Our problem: Assess strategic and tactical changes Viettel should
implement to achieve sales growth till 2019.
72

VIII. RECOMMENDATION

A.VISION & MISSION

Vision
Become the No. 1 company in Vietnam about
Telecommunications and Information Technology in 2015
Top 30 largest Telecommunications provider in the world
Top 10 global telecom investment ( 2015: 500 million
people ; 2020: 1 billion people )
Manufacturers of telecommunications equipment in the area
leading ( 5000 staffs , 1 billion USD gross fit )
Exploding in the popular market of goods and services,
putting IT & Telecommunications in all areas of life
Mission
Innovation to serve people Caring Innovator

Business Philosophy
Each customer is a man - a separate individuals, should be
respected, attention and listen, understand and serve
separately.
Continuous
innovation,
with
customers
innovative products and services more perfect.
A firm foundation for the social development. VIETTEL
commitment to reinvest back to society through activities
73

associated production and business activities with social,

humanitarian activities.

The development perspective

Incorporate between Economic and Defense.

Focus investment in Infrastructure.
Customer-oriented business.
Rapid development
sustainable way.

and

continuous

improvement

of

People-core elements.

Core Values
Practice is the standard test of truth:The motto of our actions
"are over the river" and constantly adjusted to fit reality.We
judge people through practice.
Head into the challenges and failures:
We are those who dare to fail.
We encourage those who fail.
We find mistakes in failure of the system to adjust.
We do not allow mistakes to take advantage of others to
overthrow him.
We will not repeat old mistakes.
We outspoken critic and building things since childhood.

74

We really need marketing, demand progress.

Adapt the competitive strength:
Self-awareness to change. Frequent changes to adapt to the
changing environment.
We will make changes become normal as breathing this air.
Constantly thinking to adjust the
organizational structure accordingly.

strategy

and

the

Innovation is life:
We built an environment that encourages creativity to each
daily Viettel can be creative.
We maintain Viettel Day ideas.
Systems thinking
We use five-step process to solve the problem: The problem
-> Find the cause -> Find the solution -> Organize
implementation -> Check and evaluate implementation.

Combining the East West

We combine visual thinking and analytical thinking and
systems.
We combine the stability and reform.
We combine balance and personal motivation.

Viettel is the common house

75

We respect each other as separate individuals, sensitive to the

needs of employees. We take the working group to develop the
individual. The individual units together as parts of a body.
Each of us through the generations will contribute to building
up the staff turnover that house.
We labor to build the country, Viettel development, but we
deserve to enjoy the fruits of that labor. But we always put the
interests of the country's now up on personal interests.

The strategy pursued and specific measures in the process

of implementing the strategy
Market entry strategy
On the basis of analyzing, evaluating business environment,
consider the goals and tasks identified, Viettel has selected
growth strategy by focusing on the development of products and
services which is the strength of corporations such as
international calls, domestic phone, the mobile information
services, internet, postal, financial and human resources. Total
telecommunications company Viettel also implement a growth
strategy by diversifying products and services.

- launch cheap packages, struggling powerful marketing

advertising, effective to increase the market share of the
product.
- increase the number of sales staff and expanding agents in
the provinces and cities nationwide.
- Strengthening the activities advertised
internet, newspapers, banners ...
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on

television,

- Also Viettel is pushing the promotional campaigns as offering

cheap packages. Examples: Father and Son Package, Happy
Zone Package , Tomato package , Sumo Sim Pack , Fixed
Home-phone

- maintain the leading position in the telecommunications & IT

market
- accelerate the application of information technology into
every corner of life, formation of research production,
telecommunications & IT equipments
- create a large enough market is crucial for success, telecom
& IT equipment manufacturers, contributing to universal
telecommunications services.
focused on projects in which Viettel has competitive
advantages and in accordance with the development strategy
of the enterprise: Viettel is the first provider of
telecommunications services so that the strength of the object
Viettel customers, infrastructure has been developed, including
nearly 50 million subscribers, transmission systems, data
centers, the number of connection points, and technical
workforce and business presence throughout the whole country
, system support 24/7 call center,
-

Therefore, Viettel will focus on investment for the project as

follows:
value-added services, equipment manufacturers cheap, IT
projects
have
online
connectivity
and
widespread
deployment

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 Combining IT and telecommunications is the difference of

Viettel, it creates a new creative space with wider scope in
all aspects of life
Create value for customers 1 overall service-oriented
package: for example, the project offers tablet, Viettel write
software for the tablet, making it a valuable tool for
customers
Priority focus on the stages of bringing high value added:
focus primarily on the design, manufacture and
commercialize test products
focusing investment in research and development
approach from simple to complex, from outside to inside, the
product must be complete including the form and quality
hardware products, software, IT services Viettel have been
studied and designed towards individualized, based on the
strength of Vietnameses

take civil projects as the basis for the development of

projects for national defense.
build the overall solution developed high-quality human
resources from recruitment, training, use, organize, evaluate
for wages, remuneration, attract and build a team of experts
good
Used capital : Development Science and Technology Fund of
Viettel (2200 VND billion as of 2012)
Diversification of products to take advantage of strong
capital and manpower availability of your system with a
distribution network throughout the province, and most

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importantly,
evaluation .

consumers

navigation

preferences

and

Viettel is the number of mobile subscribers Largest Number

of Viettel subscribers to over 22 million subscribers,
accounting for over 42% of the mobile market.
To reach more customers, Viettel seek new market segments
such as customers need to hear more (package Tomato),
younger subjects prefer to use value-added services (such as
package Ciao charges). And this network was "arrested" Fast
opportunity to continually offer new services bring great
revenues. Services I-muzik ringtone wait a year and a half
after birth has eight million users. Besides, Viettel also offer
a variety of services, such as I-share - share account, service
and receive email on a mobile phone ...

With these steps, only after more than three years of

operation, Viettel has led the market for mobile
subscribers.

Execution Framework

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Vision & Mission:

Goals & Objectives : Oriented to 2015, Viettel not just want
to confirm the position of the leading national
telecommunications and information technology, but also
the desire to become multinational corporations, in the top
30 vendors telecommunications services the world's largest.
The average growth rate of 15-20% / year. Business strategy
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of the Group in the next 5 years in the field direction is:

Expansion target is set at 60% local expansion and 40%
global expansion. The current revenue split is 30%
international and 70% domestic.

BALANCED SCORECARD

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Using Marketing Mix in Marketing Strategic

Continued using the Marketing Mix Strategy

Continue with products aimed at under-age customers, with
products aimed at income levels of customer
Promotion: Privilege membership card free of cost reduction
when using the value-added services, receiving birthday
presents every year ....
Product: Mobile, Internet, Landline, Homephone,.
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 Price: Price rates provide very attractive, fit each customers

as package Happy Zone, Homephone no subscription fee,
Sumo Sim or father and son ...
Place: Viettel has branches in all 63 provinces in the country.

Viettel's success is due to the right Marketing : Viettel has

reached a record 1 million subscribers. This is a remarkable
achievement for a new mobile network. In the success of
Viettel, many people have said to the dynamic and important
role of marketing with the message Say it your way."

Human Resource:
The Company should continue Identify the type of applicant
for training needs
Choosing subjects for training, choose to send people for
training comes from planning training Viettel Post, the
orientation is focused on high-level, highly specialized
subjects with urgency, encourage formal training focusing,
fostering professional proficiency.
Subjects were sent for training: The staff of Viettel Post.
Implement training: training at the Institute of Posts and
Telecommunications.

Financial:
According to Bloomberg, sales reached 197,000 in 2014
Viettel billion, an increase of over 20%, profit before tax of
42.000 billion, an increase of 15%.

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 Produce more key telecommunications equipment ,

telecommunications software, management software. Put
them all into operation.
Social Response:
- Continue and improve with those CSR activities:
-Enhancing organizational resources activities for the Youth
Union in education, training, and promote the role of youth and
the development of Viettel
- Gratitude workers annually
- Program "Because I studious" of Viettel coordinating with
Radio the Voice of Vietnam
- Vietnam Study Promotion Fund
- Free health care for the poor.....

Proposed Strategies

In order to achieve sales growth by 2020, some key changes

that Viettel should implement are as follows:
Focus on the core competency of the organization : focus on
the productions and distribution of products on both Local
and Global.
Continued expansion in the emerging local and global
market : Expansion target is set at 60% local expansion and
40% global expansion. The current revenue split is 30%
international and 70% domestic.

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IX. FINANCIAL PROJECTION

In order to measure success of the strategy we use financial

projections and measure impact across different financial ratios
and relevant financial indicators. We start of with securing
historical financial information. The graph below shows Viettels
historical financial data from 2012-2014.

Key findings include a steady increase in revenue, cost of sales,

stakeholders equity, incremental increase on net income and
total operating expense, fluctuations in total liabilities.
The historical financial ratio from 2012-2014 is characterized by
incremental movements of the cost to sales ratio, incremental
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increase in gross profit margin, fluctuating net profit margin and

decreasing sales growth (refer to graph below).

The following assumptions are made regarding each of the

strategies:
1. Focus on the core competency of the organization 20%
increase in sales, 15% decrease in operating expense for the
first year and additional 5% year after year (e.g. 15% for
year 1, 20% year 2, 25% year, 3 and so on); 15% decrease in
liabilities from the first year and additional 5% year after
year (e.g. 15% for year 1, 20% year 2 and so on.)
2. Continued expansion in the emerging local and global
market : Expansion target is set at 60% local expansion and
40% global expansion. The current revenue split is 30%
international and 70% domestic.

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Using 2012 financial data, we measure the impact of these

assumptions on relevant financial indicators from 2015-2018.
Table below shows the result.

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88

X.

CONCLUSION

The Telecom & IT services industry is projected to experience

growth in the coming years. Despite current local market
leadership, Viettel is faced with the challenge of maintaining
that leadership locally and expanding into the global market.
In order to achieve this Viettel needs to implement strategic
and tactical changes.
In conclusion to achieve a window increase in sales growth
by 2020, the following strategies should be in place.
Target 60% local expansion and 40% global expansion. Local
expansion should maintain while global expansion should

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focus on countries where Viettel had a degree of success in

penetrating (African).
Viettel should focus on its core competency of producing and
distributing Telecom & IT products. Company owned assets
should be increased to 20% and above each year .
Corporative owned stores (in Global Market) should be
increased to 50%.

XI. REFERENCES
http://www.vietteltelecom.vn/
http://www.viettel.com.vn/
http://dichvudidong.vn/viettel
http://vi.wikipedia.org/wiki/Viettel_(%C4%91%E1%BB%8Bnh_h
%C6%B0%E1%BB%9Bng)
http://dhtn.hatinh.gov.vn/dhtn/static/uploads/attachments/attach
ment_object.file.96f744281932aab6.636869656e206c756f632070
68617420747269656e20637561205669657474656c2e706466.pd
f
http://viettel.com.vn/1-17-1-1370-Binh-phap-Viettel.html
http://baodientu.chinhphu.vn/Thi-truong/Viettel-va-nhung-muctieu-so-1-vao-nam-2015/186443.vgp
http://vtc.vn/nhung-phat-ngon-de-doi-cua-tan-tgdviettel.1.476944.htm
http://www.qdnd.vn/qdndsite/vi-vn/61/43/xung-danh-bo-doi-cuho/tap-doan-vien-thong-quan-doi-day-manh-thi-dua-vi-mot-vietteltoan-cau/342184.html
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http://vneconomy.vn/doanh-nhan/vu-khi-bi-mat-cua-viettel20141016104351271.htm
http://www.nhanhieuviet.gov.vn/viet-trademark-nhan-hieu-vietvietnamese-top-trademarks.gpprint.3791.gpside.1.asmx
http://viettel.com.vn/3-29-1-2190-Nam-2013-Viettel-se-tiep-tucchien-luoc-dua-CNTT-VT-len-loi-vao-moi-ngo-ngach-cua-cuocsong.html

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