During the period of 1996-2004, Vietnam Posts and Telecommunications Group (VNPT) operated

as a monopoly in the telecommunications industry in Vietnam. As a monopolistic entity, VNPT

enjoyed exclusive control over the provision of telecommunication services, enabling it to
generate substantial profits. One of the primary drivers of profit for VNPT during this period was
the high demand for telecommunications services in Vietnam. As the sole provider, VNPT held a
captive customer base and was able to set prices at levels that maximized its revenue. Vietnam
was one of 30 nations with more than 2 million telephone subscribers in 1999, with 2.5 million
users of VNPT. Additionally, VNPT has 3,000 post offices across the country this year; it has
organized 7 remote newspaper printing transmission stations; and party publications have arrived
during the day in 60 out of 61 provinces and cities. With 17 divisions, including 8 joint venture
units, the postal sector has manufactured a wide range of equipment to support networks both
domestically and internationally. Moreover, the limited competition allowed VNPT to achieve
economies of scale and benefit from cost advantages, contributing to enhanced profitability. The
monopoly position of VNPT also provided stability and reduced uncertainties associated with
market competition. With limited entry barriers, VNPT was able to operate without significant
threats from new market entrants or disruptive technologies, which further enabled the company
to focus on maximizing profit. Additionally, the absence of competition allowed VNPT to invest in
infrastructure and expand its service offerings at its own pace. VNPT officially launched the new
generation telecommunications network (NGN) for the first time in Vietnam using packet
switching technology, allowing support for all methods of transmitting and delivering information
(audio, data, image) and Service guarantee (telephone, data transmission, internet, radio,
television, online entertainment.... However, it is important to note that the profit generated by
VNPT during this period was also subject to government regulations and control. As a state-
owned enterprise, VNPT's profitability was influenced by government policies that aimed to
balance the needs of the general public with the interests of the company. The monopoly position
provided stability and reduced uncertainties, further contributing to VNPT's profitability during
this period.

https://congdoan.vnpt.vn/tin-tuc/Tap-doan-bcvtvn/570526/nhung-moc-phat-trien-quan-trong-
cua-vnpt
https://nhandan.vn/buoc-chuyen-moi-cua-thi-truong-vien-thong-post600636.html