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GROUP 3
11223698 - Pham Dieu Linh
11220971 - Lai Linh Chi
11222169 - Tran Doan Nguyen Hanh
11226388 - Le Thu Trang
11227037 - Vo Thi Chieu Xuan
11221466 - Tran Mai Dung CONTENT
The decision whether to internationalize Introduction
Should the company go global or not ?
External & Internal analysis Firm's SWOT Deciding market to enter
The political and economic environment The sociocultural environment
The international market selection process Target market analysis Objectives Market entry stratergies Entry mode decisions Entry mode strategy
Designing global marketing programs Product Price Place Promotion Implemeting plan INTRODUCTION
Established on June 1st, 1989, at present, Viettel Group is the largest
telecommunications, industrial and technology enterprise in Vietnam, one of the About Viettel group
enterprises with revenue, profits, paying taxes and contributing to the State budget.
In the new development phase, Viettel defines its mission as pioneering and leading
the creation of a digital society with the goal of applying the results of digital
transformation to improve people's lives. #1 #1 Most valuable brands Most valuable in Viet Nam telecommunications brands in the Southeast Asia #18 #227 Most valuable Most valuable brands
telecommunications brands in the world in the world
The Group comprises over 20 subsidiaries operating in diverse sectors such as
telecommunications, investment, real estate, international trade, and technical services.
In 2014, Viettel achieved a revenue of 9.8 billion USD and a profit of 2 billion USD,
solidifying its position as one of Vietnam's leading enterprises in terms of revenue.
Viettel’s operations have gone beyond the national territory, becoming one of the
most valuable global brands, with more than 50,000 employees in 11 countries over 3
continents, indirectly creating jobs for tens of thousands of people. INTRODUCTION
ORGANIZATIONAL STRUCTURE About Viettel Global
BOARD OF GENERAL DIRECTOR
In 2006, Viettel embarked on a global expansion journey, venturing into overseas
markets to tap into new growth opportunities. The establishment of Viettel SUPPORTING PRODUCTION DIVISION
International Investment Joint Stock Company in October 2006 (now Viettel Global AND BUSINESS DIVISION
Investment Corporation) marked a significant milestone in Viettel’s ambition to
transform Viettel into a strong international telecommunications group.
After 18 years of development, Viettel Global - Viettel International Investment Joint P R O F E S S I O - TELECOM - HIGH-TECH IT SOLUTIONS LOGISTICS, E-
Stock Company - is one of the largest foreign investors in Vietnam. Viettel Global has COMMERCE
launched nine telecommunications companies across nine countries in Asia, Africa, N A L A N D MUNICATIONS R&D & DIGITAL
and the Americas, serving a combined population of over 220 million people and 65 OPERATIONAL SERVICES & OTHERS
million customers. In 2023, the total revenue reached 32,165 billion VND. BOARDS V i e t t e l Viettel Viettel Viettel Business Viettel Post Join
Viettel Global has demonstrated their capabilities through the success of its T e l e c o m Construction High Technology Solutions Stock
subsidiaries, with most of these companies leading their respective Corporation Joint Stock Industries Corporation Corporation
telecommunications markets in terms of subscriber numbers, revenue, and Corporation Corporation
infrastructure. Examples include Metfone in Cambodia, Telemor in East Timor, and Viettel Network Viettel Digital Viettel Movitel in Mozambique. Corporation Commerce and Viettel Viettel Services Import-Export Consultancy and Manufacturing Corporation Viettel Global Limited Services Joint Corporation Corporation Company Stock Company Viettel Media Company Viettel Viettel Asset Aerospace Viettel Cyber Management Company Security Company Campha Cement Joint Stock Company Viettel Cyberspace Viettel Sport Center Center Viettel Academy Vietnam Digital Transport Join Stock Company Viettel-CHT Limited Company
Countries with Viettel’s network presence INTRODUCTION About Viettel Global Become
Democratizing technology, bringing technology opportunities to everyone, a big-tech
and developing technology consciously to create value and improve the lives
of communities and the world, Viettel is transforming from a
telecommunications service provider to a digital service provider. in emerging markets in emerging markets
Investing in new markets and exploring M&A opportunities with suitable technology Technology
companies to diversify the product and service ecosystem with heart 2007
Viettel Global Investment JSC was established according to the Business Registration
Certificate no. 0102409426 issued on October 24, 2007 by the Department of Planning
and Investment of Hanoi city. The initial share capital was 960 billion VND. Historical 2008 development
1/2008: Viettel Global received the investment project in Cambodia from Viettel Group.
2/2008: Viettel Global concluded a joint venture contract with Lao Asian Telecom (LAT)
to establish Star Telecom Co., Ltd. in which Viettel holds 49% share capital, and officially started investment in Laos. 2009
2/2009: official launch of telecommunications network in Cambodia, started business
operation and services provision in the country.
10/2009: official launch of telecommunications services in Laos. 2010
2/2010: establishment of Viettel Overseas Co., Ltd to implement the investment project
on the expansion of the telecommunications network in Haiti.
11/2010: Viettel Global won the tender of the investment project of a
telecommunications network in Mozambique. 2011
9/2011: official launch and started business operation of telecommunications services in Haiti. 2012
5/2012: Official launch and started telecommunications services provision in Mozambique.
7/2012: Viettel Global won the tender of an investment license in East Timor.
12/2012: Viettel Global won the tender of the 3rd mobile license in Cameroon. 2013
Viettel is a pioneer and effective in investing abroad in high technology in 10 markets
3/2013: Official launch of mobile services in East Timor.
on 3 continents, with a scale of 260 million people. In each country where Viettel
8/2013: Viettel Global’s Extra-Ordinary Shareholders Meeting made decision on 3 major
invests, there will be a mobile network with its own name, logo and brand positioning. issues:
Viettel commits to long-term investment with modern technology, sustainable
- Change the Company’s Vietnamese name from: “Company” to “Corporation”;
infrastructure, transferring and training to local people, building a brand to become
- Increase share capital from VND 6,219,052,000,000 up to VNĐ 12,438,112,000,000; the pride of each country.
- Supplement: "Rent of machines, equipment and other tangible facilities" to the Business
Currently, 5/10 business markets are ranked No. 1; 2 markets are ranked No. 2; The Registration of the Company.
remaining markets are all large telecom enterprises. The annual growth rate of
service revenue at 25% is 3 times higher than the average of the world 2014
2/2014: Receive investment license in Burundi. telecommunications industry.
9/2014: Official launch of mobile services in Cameroon
The achievements of foreign investment not only change Viettel in terms of stature,
10/2014: Official launch of mobile services in Peru
scale, experience, and material potential, but also contribute to strengthening
Vietnam’s image in the international arena. Mobile Product TELECOMMUNICATIONS Broadband Internet eMoney Leased Line portfolio U-Money VIETTEL eSIM Natcash GLOBAL E-Wallet eMola Digital Content Mosan Mozambique (Movitel) Digital solutions
Telecom: Mobile, Broadband Internet, Leased Line services. DIGITAL SOLUTIONS MytelPay for business
Digital Solutions: eMola e-wallet, Digital Content, Digital Solutions for enterprises E-Government solutions Lumicash
(Corporate Hotline, Brand name SMS…). E-commerce system HaloPesa Timor-Leste (Telemor) Online ride-
Telecom: Mobile, Broadband Internet, Leased Line services. hailing system
Digital Solutions: Mosan e-wallet; App for movies, music, television, and services; IT Electronic
solutions for national population census in Timor-Leste; Online Conferences; lottery system
Corporate Hotline, Virtual Switchboard, Brand name SMS… Peru (Bitel)
Telecom: Mobile, Broadband Internet, Leased Line services
A diverse product portfolio is tailored specifically for each country to meet user needs,
Digital Solutions: Digital Content
ensuring customer satisfaction through modern telecommunications and technology
services. In every country where Viettel invests, a mobile network with a unique name, Cameroon (Nexttel)
logo, and brand positioning is created.
Telecom: Mobile, Broadband Internet, Leased Line services Cambodia (Metfone) Burundi (Lumitel)
Telecom: Mobile, Broadband Internet, Leased Line services.
Telecom: Mobile, Broadband Internet, Leased Line services.
Digital Solutions: eMoney e-wallet, eSIM, Digital Content (Mocha Super App), Digital
Digital Solutions: Lumicash e-wallet, Digital Content, Lumimart e-commerce system;
Solutions for enterprises, e-Government solutions.
LumiGo online ride-hailing; LumilLotto e-lottery system; Digital Solutions for Laos (Unitel)
enterprises; e-Government solutions.
Telecom: Mobile, Broadband Internet, Leased Line services.
Digital Solutions: U-Money e-wallet, eSIM, Digital Content (mobile utilities), Digital Tanzania (Halotel)
Solutions for enterprises (Brand name SMS, Corporate Hotline…), e-Government
Telecom: Mobile, Broadband Internet, Leased Line services.
solutions, Digital Solutions for Education, Healthcare, and Public Administration (Civil
Digital Solutions: HaloPesa e-wallet.
Registry Management System, Core Banking, Online Testing, etc.). Haiti (Natcom) Myanmar (Mytel)
Telecom: Mobile, Broadband Internet, Leased Line services.
Telecom: Mobile, Broadband Internet, Leased Line services.
Digital Solutions: Natcash e-wallet, Digital Content, Digital Solutions for enterprises
Digital Solutions: MytelPay e-wallet, Digital Content, Digital Solutions for enterprises
(Data Center, Virtual Servers…), e-Government solutions (Smart Office N-Office,
(Corporate Hotline, Virtual Switchboard, Cloud CRM, Brand name SMS, Online Online Conference…).
Conference…), e-Government solutions (Utility Management solutions).
SHOULD THE COMPANY GO GLOBLAL OR NOT ?
Technology competence/ unique product
Viettel's advanced technological capabilities can be valuable assets in developing and less
Major motives to starting to go global
developed markets. Viettel provides essential telecommunication services, making
significant contributions to the countries. It bridges the digital divide between the rich and PROACTIVE MOTIVES
the poor, brings connectivity to rural areas, and enhances social and economic livelihoods.
For governments, Viettel also provides management tools such as on-demand television Profit and growth goals
and school internet access. The company's experience in building and managing large-
Increasing profits and revenues is obtained by accessing larger international markets. In
scale telecommunications networks can be applied to infrastructure projects in other
2006, Vietnam had fewer than five billion-dollar enterprises and no company ranked among countries.
the top 20 globally. That year, Viettel - a telecommunications company with approximately
7,000 billion VND in revenue and less than 1,500 billion VND in profit, which had just launched
its mobile services in its home country of Vietnam for two years, took its first steps on the REACTIVE MOTIVES
path to “go global”. In 2019, Viettel ranked among the top 15 largest telecommunications
companies globally in terms of subscribers and among the top 40 in terms of revenue.
Saturation of the Domestic Market
The Vietnamese telecom market has reached a point where most potential customers
The achievements of foreign investment not only change Viettel in terms of stature, scale,
have already subscribed to mobile services. This limits the growth potential for domestic
experience, and material potential, but also contribute to strengthening Vietnam’s image in
operations. As per the Vietnam Briefing, 71 million users had mobile broadband
the international arena. Brand Finance valued Viettel's brand at 4.3 billion USD, placing it
subscriptions and almost 19 million users had fixed broadband subscriptions in 2021,
among the top 500 most valuable brands worldwide. Notably, Viettel Global, the Group's
marking a 4% and 14.6% increase year on year (YOY) respectively. The growing popularity
overseas investment arm, currently has a market capitalization of nearly 2.4 billion USD on
of smartphones in the country is driving the telecom market due to their enhanced the Vietnamese stock exchange.
convenience. As the market matures, average revenue per user (ARPU) tends to decline
due to increased competition and price pressures.
Past efforts show that International operations can provide a steady stream of revenue
(2,8B for the first six months of 2024), helping to offset potential fluctuations in the
Intense competition among telecom providers in Vietnam leads to price competition,
domestic market (Regulatory Changes, Competition, Economic Factors,. . ). For the second
reducing profit margins. The Vietnamese telecommunications market is characterized by
consecutive year, cash inflows from Viettel Global's markets have reached approximately
intense competition among its major players: Viettel, MobiFone, and VNPT offering
$400 million, equivalent to 10 trillion VND, raising Viettel's return on investment to 76.5%,
competitive pricing plans to attract and retain customers. Therefore, Global expansion is
closely aligned with the goal of substantially recovering foreign investment by 2025.
considered as a solution to high growth potential that can unlock new revenue streams
Services revenue from overseas telecommunications operations increased by $615 million, and diversify income sources.
the highest ever. The growth rate of service revenue reached 20.6%, five times the global
average. Pre-tax profit from overseas telecommunications operations in 2023 is estimated
Demands from International Customers and Partners
at $220 million, the highest ever.
Viettel’s international expansion has been partly driven by demands from foreign
customers and strategic partners. The company has received invitations to cooperate and Managerial urge
invest from governments and businesses in underdeveloped countries, where they
Viettel's BOD recognized the immense potential of the telecommunications industry. When
recognize the potential for telecom and internet technology development. This is a
Viettel was merely a construction company, it had already dreamed of becoming Vietnam's
significant motivating factor, prompting Viettel to respond and expand its operations
number one telecommunications enterprise. As the company experienced rapid growth in beyond Vietnam.
the domestic mobile market, Viettel's leadership foresaw a potential saturation point.
Therefore, 20 years ago, Viettel's leadership had the foresight to look beyond the domestic
market of 90 million people and expand globally.
Going global, they encountered the most competitive businesses and formidable opponents
in the world. Thanks to these experiences, Viettel has grown stronger, and many lessons
learned from our overseas investments have been successfully applied domestically.
THE DECISION TO GO INTERNALIZE ENVINRONMENT ANALYSIS Internal analysis Industry globalism Local Potentially global Global Chance Firm strategy, 3. Enter new 6. Prepare for 9. Strengthen your Structure and revalry Mature n business globalization global position r tio fo a s 2. Consolidate 5. Consider expansion s liz a 8. Seek global e n n Adolescent your export in international Demand d alliances Factor conditions e tio markets markets conditions a a p rn re P te 1. Stay at 4. Seek in niches 7. Prepare for a in Immature home international markets buyout Related and Governm- supporting ent industries
The nine strategic window
As technology continues to advance at a rapid pace, we can expect more innovative and
Porter’s diamond model
exciting developments in the field of telecommunications. The potential capabilities of 5G
wireless technologies goes along with the rapidly evolving customer needs relating to FACTOR CONDITIONS
Internet of Things (IoT) services and service models. Developed countries will likely lead the Geographic location
way in technological advancements, such as 6G networks, AI-powered telecommunications,
Vietnam’s geographic location allows Viettel to connect with large global markets, especially
and quantum computing. Developing countries are experiencing rapid growth in
the Asia-Pacific market.Vietnam is located in Southeast Asia, one of the most dynamic
telecommunications infrastructure and connectivity. This growth is fueled by increased
economic and commercial regions. Additionally, with a domestic market of nearly 100 million
urbanization, economic development, and government initiatives. Less developed countries
people and direct access to the 600-million-strong ASEAN market, as well as a vast
often have significant connectivity gaps, with many rural areas lacking basic internet access,
international export market due to participation in free trade agreements, Vietnam possesses
posing a great potential to explore the market. Therefore, a greater aptitude for digital
significant economic potential.
services is becoming commonplace among consumers. They crave digital interactions thanks
to the greater convenience they offer. So, the telecommunication market, especially the digital Labor resources
solution market are global industries.
Vietnam boasts a large and adaptable workforce, renowned for their quick learning abilities in
operating, maintaining, and assembling electronic devices, including advanced ones. The
Meanwhile, Viettel Global has reached a position where it operates in the global market, and
relatively low labor costs provide a competitive edge for businesses compared to regional
where it is among market leaders in some key markets, which are in the developing and less competitors.
developed countries. Many of Viettel Global's Asian markets hold the number one market
share position: Metfone maintains the number one position in Cambodia with a 41.9% market Political
share, notably surpassing the next competitor in terms of revenue. Unitel and Telemor still
Vietnam's stable political environment has fostered a secure investment reputation. Recently,
hold the number one position in mobile services in Laos and Timor-Leste. In the African
the Party and State have prioritized economic diplomacy, boosting trade, investment, and
market, Movitel achieved a revenue growth of over 20% for three consecutive years, while
overall economic ties with partners, making the economy a central focus in bilateral and
Halotel and Lumitel grew by more than 26%. In the Americas, Natcom experienced double-
multilateral foreign relations. The country's membership in various international trade
digit growth, marking a continuous growth streak over the past five years. We all can say that
organizations and its extensive network of free trade agreements have created favorable
Viettel has the intermediate ability and skills to carry out strategies in the international conditions for businesses.
marketplace. They have an adolescent degree of preparedness for internationalization.
As a result, Vietnamese telecom companies have seized the opportunity to export their
According to Nine Strategic Windows of Solberg, with the present conditions, Viettel should
products and equipment to numerous countries at reduced tariffs. Viettel, VNPT, and
seek global alliances, which is also suitable with their mission of dreaming of bringing
Mobifone are among the leading Vietnamese telecom corporations that have successfully
Vietnam technologies to other foreign markets.
expanded their global footprint. Financial
Related and supporting industries
The government has assigned Ministries and Sectors to research and develop a
Software and Technology Solutions:
specialized resolution to promote the overseas investment strategy of enterprises, which
The information technology sector provides software solutions, platforms, and applications
clearly outlines mechanisms and policies to address difficulties and challenges such as
for telecommunication services, such as network management systems, customer service,
mergers and acquisitions, divestment abroad, and comprehensive evaluation of
data analytics, and security. Over-the-top (OTT) applications like WhatsApp, Zalo, Facebook investment projects.
Messenger, and many others rely on telecommunications infrastructure to operate. The
development of mobile applications also drives the demand for mobile data and
The Vietnamese government established the Vietnam Public Utility Telecommunication telecommunication services.
Service Fund (VTF) to financially support projects that extend telecommunication services
to underserved areas. This not only helps bridge the digital divide but also empowers
The Hardware Component Manufacturing Industry:
communities with better access to telecommunication services.
Electronics manufacturers such as Huawei, Ericsson, Nokia, Cisco, and others provide
essential networking equipment and infrastructure, including routers, switches, antennas, and base station equipment. DEMAND FACTORS
The internet in Vietnam in 2023 is rapidly developing, with 77 million users, accounting for
Firm strategy, structure and rivalry
79.1% of the population. Social media has also become an important platform, with over 70
million participants, presenting both opportunities and challenges for businesses in a BeeLine S-phone 1%
digitalized environment. At the beginning of 2023, Vietnam had 77.93 million internet users, 8%
making up 79.1% of the total population. Additionally, the number of social media users Vinafone
reached 70 million, equivalent to 71% of the population. The total number of active mobile 8%
connections is 161.6 million, representing 164.0% of the total population. Market share of Viettel 44%
telecommunication business
OVERVIEW OF INTERNET USE in Viet Nam
ESSENTIAL INDICATORS OF INTERNET ADOPTION AND USE TOTAL INTERNET USERS AS YEAR-ON-YEAR CHANGE I N T E R N E U S E R S A PERCENTAGE OF IN THE NUMBER OF TOTAL POPULATION INTERNET USERS Mobifone 35% 77.93 79.1% +7.3%
The Viet Nam telecommunications market is highly competitive and primarily dominated by MILLION YOY: +6.6% (+489 BPS) +5.3 MILLION
the three largest operators: Viettel, Mobifone, and Vinafone (with Vinaphone and Mobifone
under the VNPT Group), which collectively account for over 80% of the market share.
Viettel, with its rapid growth, currently holds the largest market share at 44%, followed by AVERAGE DAILY TIME SPENT PERCENTAGE OF USERS USING THE INTERNET BY ACCESSING THE INTERNET
Mobifone with 35%. This market is characterized by a triopoly, with the three largest EACH INTERNET USER VIA MOBILE PHONES
operators dominating. Smaller operators have been trying to gain market share through
price competition but have been unable to significantly alter the market landscape due to 6H 23M 94.5%
their limited network coverage.
However, Viettel is the only Vietnamese telecommunications enterprise to provide services, -4.0% (-16 MINS) -1.4% (-130 BPS)
cable networks, and invest in telecommunications businesses overseas. As of June 2009,
Viettel had deployed over 1,500 base stations and over 6,000 km of fiber optic cable in
The remarkable growth of the technology and telecommunications sector highlights its
Cambodia, and over 300 BTS stations in Laos. By March 2010, Viettel had installed 2,690 2G
critical role and the ever-increasing demand for its products and services.
BTS stations and 520 3G BTS stations in Cambodia and 1,028 BTS stations in Laos. GOVERNMENT
PORTER FIVE FORCES MODEL
Policies to support exports and foreign direct investment
Bargaining power of supplier
Viettel has benefited from government support through preferential credit and tax policies,
To operate effectively in the telecommunications sector requires substantial investment in
alleviating the financial burden of expanding into new markets. The Vietnamese government
equipment and finding the best, most compatible suppliers for the company’s current
has always prioritized the development of large corporations into multinational companies,
infrastructure. Some notable suppliers providing materials and products to Viettel include
positioning them as bridges between the Vietnamese economy and the global market. The
AT&T (United States), Huawei (China), Ericsson (Sweden), and Nokia Siemens Network
government's granting of investment and operation licenses to Viettel in sensitive markets (Finland).
such as Laos, Cambodia, and Mozambique demonstrates the state's legal and diplomatic
Additionally, Viettel needs reliable financial partners, such as BIDV, MHB, Vinaconex, and EVN.
support for international expansion. This not only provides Viettel with strong legal
As a state-owned enterprise managed by the Ministry of National Defense, Viettel faces
guarantees but also facilitates access to and cooperation with government agencies in those
minimal competitive pressure from suppliers. countries.
Additionally, network providers face high costs in maintaining and upgrading
Policies on technology and telecommunications development
telecommunications infrastructure, including the procurement of equipment and related
It has also played a significant role in enhancing Viettel's competitiveness. The government
technology solutions. Supply chain risks, such as the global chip shortage or changes in
has issued numerous programs to support digital transformation and develop information
international trade policies, can increase pressure on network providers in terms of both cost
technology infrastructure, such as the "National Digital Transformation" project, aiming to
and project deployment timelines.
make Vietnam a developed digital nation by 2030. As a leading telecommunications provider,
Viettel has always been a key partner in implementing these policies. This has not only helped
Rivalry among existing competitors
Viettel improve the quality of its products and services but also provided the company with
The Vietnamese telecommunications market is highly competitive, with the three major
the experience and resources to compete internationally. Additionally, the government's
carriers, Viettel, VNPT (Vinaphone), and MobiFone, vying for market share. Competition is
foreign policy has helped Viettel establish strategic partnerships with foreign partners.
primarily focused on mobile services and data, as the traditional voice market (SMS, calls) has
become saturated. Viettel currently holds over 50% of the market share, leading in CHANCE
infrastructure development and service innovation, particularly in the deployment of 4G and Free Trade Agreements
5G networks. This puts significant pressure on competitors to catch up and retain customers.
In the context of globalization and the robust development of the global telecommunications
Competition is further intensified by aggressive marketing campaigns and attractive service
industry, Viettel Global is poised to seize significant opportunities for international expansion.
packages, especially competitively priced voice and data combos.
One of the greatest opportunities arises from Vietnam's participation in numerous Free Trade
With the growing demand for digital services and digital transformation in the context of a
Agreements (FTAs) and key international organizations such as the WTO, ASEAN, and
developing digital economy, competition among carriers is becoming even fiercer. Carriers
bilateral agreements with countries worldwide. Particularly in developing markets in Africa
face the challenge of continuously investing in new technologies while maintaining
and Southeast Asia, where trade agreements help reduce legal and financial barriers, Viettel
competitive pricing to meet consumer needs.
can rapidly penetrate and capture market share. Buyer power
Additionally, opportunities STEM from the trend of strategic cooperation among global
Viettel is Vietnam's leading telecommunications enterprise. Upon entering the market, Viettel
telecommunications enterprises. Such cooperation not only helps businesses expand their
played a pivotal role in popularizing mobile phones in Vietnam, followed by a broadband
networks but also facilitates the sharing of technology, knowledge, and resources. Viettel can
internet boom thanks to its 4G coverage reaching 97% of the population. As of July 202, Viettel
leverage strategic alliances with international operators to enhance its competitive
has become Vietnam's largest telecommunications network with over 65 million mobile
advantage, reduce investment costs, and rapidly expand its operations.
subscribers, accounting for 46.7% of the market share (including 45 million data subscribers)
Global consumer demand shifts
and 5.8 million fiber optic internet subscribers, representing 41.5% of the market share. Viettel's
The continuous development of telecommunications technology and digital transformation
telecommunications network is a super broadband network with 360,000 km of fiber optic
worldwide has created a favorable business environment for Viettel. With the increasing
cable reaching most districts and communes, 120,000 base stations, and 5 international
demand for high-speed internet, 4G, 5G networks, and value-added telecommunication standard data centers.
services such as mobile payments and digital financial solutions, Viettel can provide
Beyond the domestic market, Viettel Global has directly invested in and managed 9
advanced products and services to meet market needs. Emerging markets with
international markets. Among them, Viettel Global has become the leading market share
underdeveloped telecommunications infrastructure present significant opportunities for
telecommunications provider in 5 countries: Cambodia, Laos, Burundi, East Timor, and
Viettel, where the company can leverage its experience in deploying 4G and 5G networks in
Mozambique. Based on these analyses, it is evident that with the quality of its products, Viettel
Vietnam to expand its services internationally.
has consistently won over customers, reducing buyer pressure on the brand. Threat of substitution External analysis
The threat of substitution for the telecommunications and digital services industry in
Viettel has gone to 3 main regions: Americas (Hati, Peru), Africa (Mozambique, Cameroon,
Vietnam is increasing due to the rapid development of new technologies, especially
Burundi, Tanzania), Asia (Cambodia, Laos)
applications and platforms that replace traditional services.
According to the We Are Social report 2023, Vietnam has over 70 million internet users, Political forces:
accounting for approximately 70% of the population. This figure reflects a significant shift
from traditional telecommunications services to online services. With the rise of over-the-
Africa (Mozambique, Cameroon, Asia (Cambodia, Laos,
top (OTT) communication apps like Zalo, Viber, WhatsApp, and Skype, as well as social media Americas (Hati, Peru) Burundi, Tanzania) Timor Leste)
platforms such as Facebook, Instagram, and TikTok, coupled with the emergence of fiber-
optic internet services and cloud solutions, many businesses and individuals can now make
calls, exchange information, and use storage and data transmission services over the Governments
internet, rather than relying on traditional telecommunications services. maintain significant
This has prompted the telecommunications services industry in Vietnam to develop more Towards the year 2000, most influence over the
high-quality services to meet user needs and ensure continued market growth. Suffering from African countries embraced telecommunication numerous telecommunications policy s sector, though the Threat of new entry consequences of reforms, particularly market degree of control
The threat of new entrants into Vietnam's telecommunications industry is considered political instability liberalization and sector varies.
moderate. The telecommunications industry typically requires significant investments in caused by riots, regulation. The telecom sector protests, and As part of the
infrastructure (base stations, fiber optic cables, etc.), creating a barrier to entry for new is significantly political crises… telecommunications policy
companies. In addition, legal regulations governing frequency licensing and network impacted by This has had a reform that took place, most
security requirements make it more difficult to enter the industry. Furthermore, large countries like severe impact on countries established
telecommunications companies such as Viettel, MobiFone, and VNPT already have large Vietnam and China, Haiti, as terrorist nationaltelecommunication
market shares and infrastructure advantages, making it difficult for new companies to enter as well as gangs have regulatory authorities as core and compete immediately. investments in occupied fuel of the new framework to
Moreover, the telecommunications industry requires continuous operational costs and the infrastructure from sources and liberalize and regulate the
need to maintain high-quality services, which requires new companies to have significant international weakened the industry.
financial resources to sustain operations and expand their networks. New entrants also face organizations and country's Africa lacks domestic capital,
challenges in providing stable services and meeting the high-quality service expectations of foreign telecommunication therefore, the customers. corporations. s infrastructure, telecommunications sector is Still facing making it difficult to mostly invested in by foreign challenges in Threat of maintain essential operations. These operators new expanding telecom services. have been investing in mobile entrants services, In contrast, Peru telecom infrastructure, particularly in rural has experienced a delivering basic as well as areas. more positive advanced telecommunication Bargaining Bargaining Most Asian power of power of development in its services. countries impose buyers suppliers telecommunication Vietnam and Africa signed the strict regulations s system, thanks to African Continental Free on digital a more stable Trade Agreement (ACFTA) in communications political climate and 2021, reducing non-tariff and internet foreign
barriers, liberalizing trade in freedom, using investments.
services, and facilitating trade telecommunication Threats of between the two sides. Competitors substitutes s as a tool for political control. Economic forces: Africa (Mozambique, Asia (Cambodia, Americas (Hati, Peru)
Cameroon, Burundi, Tanzania) Laos, Timor Leste) Socio-cutural forces Both Haiti and Peru face economic Africa has seen explosive problems that impact Africa (Mozambique, growth in mobile phone Asia (Cambodia, Laos, their Americas (Hati, Peru) Cameroon, Burundi, penetration, with many Timor Leste) telecommunications Tanzania) countries experiencing sectors, albeit in mobile subscriptions different ways. - Haiti's exceeding their population severe poverty and Similarity: deep numbers. The market has political instability socioeconomic In many African nations, significant growth hinder market growth inequality. Similarity: the richness and fixed-line services have potential in the and infrastructure Haiti, one of the variety of their cultures and been largely replaced by telecommunicatio development. poorest nations in languages. Similarity: A long-standing mobile services due to the ns industry, In contrast, Peru's the Western Mozambique is home to traditional culture and the high cost and logistical primarily driven by economy is growing, Hemisphere, has a over 20 distinct ethnic values of family and challenges of developing increasing mobile but significant large population groups, each with its community are highly fixed infrastructure. As a penetration rates disparities exist living in poverty own language, while regarded. result, mobile networks and higher between urban and and without access Cameroon utilizes both Buddhism shapes the have become the primary disposable rural to essential English and French cultural landscape of means of communication incomes. connectivity.These services. extensively. Religion is a Cambodia and Laos, Many African countries are countries share a Peru, while more significant factor in the profoundly influencing attracting significant common goal of developed, still social fabric of these how its people interact foreign direct investment attracting foreign grapples with stark nations. This diversity with technology. (FDI) from global telecom investment to enhance disparities between profoundly influences Timor Leste’s spiritual companies, particularly their infrastructure and urban and rural the delivery of fabric is woven with the from Europe and Asia. developmental areas. telecommunications threads of Christianity. services. Viettel's strategic services Viettel's strategy focuses in focus in the Americas: A strong sense of Asia: respect and leverage catering to (1) the community: Community these cultural values. The growing middle class in is an integral part of emphasis should be on the urban Peru, who seek African life. People live ability to connect families sophisticated closely together, and communities through telecommunication supporting one another telecommunications services, (2) in production, daily life, technology, creating a sense underserved low- and social activities of closeness and cultural income populations in Viettel's strategy focuses in relevance. both Haiti and rural Africa: highly flexible in Peru, where localizing its services. infrastructure is limited. SWOT ANALYSIS
DECIDING WHICH MARKET TO ENTER
Ranking world market according to company's vision & mission
Viettel keeps on pursuing its long-term goal of making a positive impact on the poor and S W
underdeveloped countries by delivering superior network services, fostering business
growth, and engaging with local communities. Viettel Global has made a strategic decision to
prioritize long-term growth by investing in trial services, market education, and customer
acquisition, even at the expense of immediate profits. Viettel sees significant growth
Financial capability: Viettel Global has
The availability of technology
opportunities in regions like Africa, South Americas where 4G penetration is still relatively
become a billion-dollar company, a global
personnel in these markets is limited.
low and creates similar telecommunications revolution stories as in Haiti, Burundi, and
enterprise that competes fiercely with
To achieve the status of a digital
Mozambique. Therefore, Viettel Global is capitalizing on the untapped potential of less
the world's leading giants, and is very
technology company, 10-20% of the
developed markets with relatively low Internet development. stable.
workforce should be local tech experts.
To achieve the Viettel's vision, we decide to consider 10 promising countries which are: Togo,
A new generation of leaders and cadres
Mali, Sierra, Leone, Malawi, Benin, Angola, Kiribati, Burkina Faso, Ethiopia, Gambia based on the
who are rapidly developing their skills and
ranking of economic and Internet development. Further details are provided in Appendix 1 abilities. FIRST SCREENING
Preliminary screening based on the macro environment of each country: O T Political % mobile Restrictions in the GNP in GNP per stability phone users import from other total capita (-2.5 => in the
The government encourages, supports, countries
Most of the markets where Viettel 2.5) population
guides enterprises overseas investment, and
invests have a low level of digital
fosters the creation of communities and
maturity, and the overall market's
service ecosystems to compete with global Foreign currency – any
capabilities and competencies are still rivals. Togo 9,32B$ 1,030$ -0.71 > 50% amounts need to be underdeveloped. declared.
In Africa, 4G coverage is only at 20%, and
Global political and economic
Viettel Global still has room for growth in the
instability has hindered the investment Products that deplete next 3-5 years. process. the stratospheric ozone layer
Viettel has been actively invited to invest in
Facing pandemics, natural disasters, Mali 20,03B$ 860$ -2.48 109% (substances containing
countries like Egypt, Nigeria, Nepal,
and political unrest in certain countries. chlorine or bromine,
Bangladesh, Dominica, Jordan, and Guinea CFC and HCFC):
Bissau highlights the importance of fostering
strong relationships with governments,
authorities, and the people to facilitate long-
term operations in these countries. Certain food products, drugs, pharmaceuticals,
In recent times, the Party and the State have Sierra environmentally 4.92B$ 560$ - 0.09 50-60%
placed great emphasis on economic Leone hazardous products,
diplomacy, contributing to the promotion and seeds, weapons,
deepening of economic and trade relations. explosives, and antique Certain food products, drugs, Sierra
pharmaceuticals, environmentally 4.92B$ 560$ - 0.09 50-60% Leone hazardous products, seeds,
weapons, explosives, and antique
General regulations on tariffs and imports for telecommunications
equipment include an 18% import Malawi 13,40B$ 640$ - 0.15 40-45% tax on telecommunications services and other customs processing fees.
Benefit from reduced income tax
obligations and tax exemptions for
Political stability is a crucial factor that imported inputs including raw Bénin 19,7B$ 1,440$ -0,35 50%
significantly influences investment
materials and equipment, exported
decisions and fosters a favorable
products, or imported industrial environment for public-private equipment
partnerships, accelerating infrastructure
development and attracting foreign
Goods requiring import licenses for investment.
specific Ministries include: Radios, Angola 78,32B$ 2,130$ -0.65 78%
transmitters, receivers, and other
To reduce political risks, we knock out devices
04 regions with high potential
Goods the importation of which is
instability, ranging from -2,48 to -0,71
subject to conditions imposed by (latest index measured by Kiribati $0.50B $3.730 1.12
50% - 60% any law of Kiribati.Compliance with
theglobaleconomy.com), which are Mali
any conditions for importation set
(-2,48), Ethiopia (-2,04), Burkina Faso out under that law. (-1,78), Togo (-0,78).
May only be imported if the goods
Kiribati has a relatively stable political originate in, and are imported
system, with regular elections and a Burkina $19.70B $850 -1.78 112%
directly from-(a) Australia; or New
peaceful transfer of power. However, it Faso
Zealand; or Fiji; or the Solomon
has a small population (only 135,161) and Islands; or Hawaii.
GDP in total accounts for $0.50B,
limiting the potential investment for Some devices, such as camera
many products and services. This can
drones, require a permit from the Ethiopia $142.61B $1,130 -2.04 49.1%
constrain the growth of businesses and Ministry of Information and
reduce potential returns on investment. Communications.
Therefore, we decide to knock out Kiribati.
There are no specific restrictions directly related to
telecommunications or information Gambia $2.31B $830 0.05 104.6 % technology equipment. However,
there are regulations concerning the importation of electronic products. SECOND SCREENING Weight x Score
Fine-grained screening 05 other countries based on market attractiveness and competitive
strengths, which are calculated based on the figures in Appendix 2 Sierra Weight Malawi Bénin Angola Gambia Leone Market attractiveness Psychic Weight x Score 0.15 0.3 0.3 0.3 0.3 0.15 distance Sierra Weight Malawi Bénin Angola Gambia Product fits Leone to market 0.2 0.6 0.6 0.6 1.00 1.00 demands Economic position (GDP 0.15 0.15 0.15 0.45 0.75 0.15 Market per capita 0.15 0.15 0.45 0.45 0.75 0.15 knowledge US$) Financial Market focus 0.1 0.1 0.1 0.3 0.5 0.3 0.2 0.6 0.6 0.6 0.6 0.6 resources Market size Local 0.15 0.75 0.15 0.75 0.75 0.15 (USD) technical 0.15 0.15 0.15 0.75 0.75 0.15 support Market 0.15 0.15 0.75 0.15 0.45 0.15 growth Technology 0.15 0.15 0.15 0.45 0.45 0.45 position Telecommuni cation 0.1 0.1 0.3 0.3 0.5 0.3 awareness Total 1.00 1.95 2.25 3.15 3.85 2.5 Competitive 0.15 0.15 0.45 0.15 0.45 0.15 intensity Political risks 0.2 0.6 0.6 0.6 0.6 0.6 Total 1.00 1.60 2.50 2.7 4.00 1.80
The result of IMS process and all the analyze show that the most attractive country
for Viettel Global is Angola
MACRO ENVIRONMENT OF THE HOST COUNTRY: Political
The Angolan government has significantly intervened in the
telecommunications sector through the Ministry of ANGOLA The extent to
Telecommunications and Information Technologies. The government which the
exercises overall management of the telecommunications sector, government
while the Angolan Communications Institute (INACOM) oversees intervenes in
and regulates operations.Angola has signed a $189 million deal with the
Gemcorp to restructure and develop Angola Telecom, a state-owned telecommunica
telecommunications company, helping to expand the network and tions industry
provide higher quality telecommunications services.Additionally, the
government has encouraged foreign investment and increased
competition by granting licenses to new operators such as Africell
The telecommunications sector in Angola is subject to a corporate
income tax (CIT) rate of 25% on profits. However, for
telecommunications operators, this rate can reach up to 35%
depending on specific circumstances. The tax applies to companies
with a turnover exceeding USD 250,000 in two consecutive or non- consecutive years.
Telecommunications companies must comply with the standard VAT
regime, with a VAT rate of 14% on revenue from services provided. Tariff policy
These companies are required to issue invoices and submit monthly
VAT returns to the tax authorities.- Telecommunications operators,
along with banks and insurance companies, must withhold 50% of
the VAT from their suppliers and report it as output VAT in their monthly returns.
Income from the transfer of profits of permanent establishments of
foreign companies in Angola is also subject to a withholding tax at a rate of 10%.
- Date of establishment of diplomatic relations: November 12, 1975.-
Historical relations: The Communist Party of Vietnam and the MPLA
have maintained a fine tradition of solidarity and friendship, formed
before both countries achieved national independence.- Cooperation Political
mechanisms:+ Inter-governmental Commission: The Inter- relations with
governmental Commission between the two countries was Vietnam
established in July 1985 and has held six sessions. The most recent
session took place in Hanoi in October 2013.+ Political consultations:
The Ministries of Foreign Affairs of the two countries held their first
Political Consultations at the Deputy Foreign Minister level in Luanda in June 2011. Socical
The prevalence of informal employment: Approximately 64% of the Social
Angolan workforce is engaged in the informal sector, reflecting unstable organization
incomes and limited spending power among a large segment of the Economic structure
population. This suggests that services with flexible pricing and payment
options are more appealing than long-term contracts. GNP
Angola GNP for 2023 was $78.32B, a 17.71% increase from 2022.
Community Culture: Angola has a strong tradition of valuing family and
The currency experienced a sharp depreciation of about 40% in June Stability of Cultural
community relationships, so products that emphasize connectivity and
2023, reflecting significant volatility influenced by external factors such currency values and
easy access within the household will be favored.- Prevalence of Mobile
as oil market fluctuations and domestic economic challenges. norms
Connectivity: Limitations in fixed infrastructure have led people to rely
Angola has faced high inflation rates, reaching a seven-year high of 31%
heavily on mobile connections to stay connected and access information.
year-on-year in June 2024. This inflation is driven by several factors, Inflation
including cuts to fuel subsidies and the depreciation of the Kwanza,
which increases the cost of imported goods.
Population Growth Rate: Angola's population is growing at a fairly rapid
rate of about 3.09% per year, reaching 37.9 million people as of 2024. This
The Angolan Kwanza has been on a gradual depreciatory trend. It is
indicates a large influx of young people entering the consumer market Exchange
expected to depreciate from a spot rate of approximately AOA Population
each year, increasing the demand for essential products and services, rate
886.8/USD to around AOA 900.0/USD by the end of 2024, with an and growth including telecommunications.
average forecast of AOA 875.0/USD for that year. rate
Young Demographic: The average age of the Angolan population is very
Angola is actively participating in regional economic integration efforts to
young, around 16.5 years old. This is a potential market for mobile and data
foster sustainable development and diversify its economy.
services targeting the youth, who tend to use many digital applications Regional
Joining Regional Organizations such as the Southern African and internet services. economic
Development Community (SADC) and the Economic Community of West integration African States (ECOWAS)
International Investment and Cooperation Programs like the EU
Approximately 68% of Angola's population currently resides in urban
UNCTAD Program, Investment in the Lobito Corridor Urbanization
areas, with major cities such as Luanda accounting for a significant portion rate
of the population. This rate is expected to continue rising, attracting more
According to UNCTAD’s World Investment Report 2023, FDI flows to
people to urban centers in search of better job opportunities and services.
Angola remained negative for the fifth consecutive year in 2022 (-USD 6.1
billion) as companies in the oil sector continued to repay loans. Similarly, FDI policies
the stock of FDI in the country decreased significantly to USD 14.7 billion
Occupational shifts: While agriculture still dominates rural employment,
from USD 20.8 billion in 2021, now representing around 12.1% of its GDP, a
urban populations tend to work in the service and industrial sectors.
share that halved over the last five years. Occupational
Particularly in office-based jobs, which require stable network
Angola recognized Vietnam's full market economy status in April 2008. distribution
connections.High data usage: Service industries demand constant internet
Regarding trade, trade cooperation between the two countries has made
access and communication, increasing mobile data consumption in urban Vietnam-
positive progress but remains modest. In recent years, trade turnover has areas. Angola
only reached about 50 million USD. Vietnam mainly exports rice, textiles, economic,
coffee, confectionery, cereal products, etc., and imports wood, wood trade, and products, liquefied gas, etc. investment
Regarding investment, as of May 2022, Angola has 04 investment partnership
projects in Vietnam with a total registered capital of 118.4 million USD.
Vietnam has 04 investment projects in Angola with a total registered capital of 2.98 million USD.
Angola currently lacks a robust research and development Opportunities:
ecosystem. The majority of technology investments originate from
Government support and incentives: The Angolan government has
foreign entities, particularly from China and Portugal. To foster
implemented policies to foster technological development and foreign
domestic technological growth, the Angolan government launched
investment. The government-established Venture Capital Fund, FACRA, is
the Venture Capital Fund FACRA in 2012, providing funding and R&D investment
a prime example, supporting startups and connecting them with
advisory services to startups. The limited domestic R&D capacity mechanism
international investors. FACRA also acts as a bridge between Angolan
exposes Angola to a reliance on imported technology, hindering the
businesses and foreign investors, improving the investment climate for
ability to localize product and service innovation and increasing costs
new technologies and business development.
due to the need to hire foreign experts. Consequently, companies like
Increasing mobile and internet usage: The high mobile penetration rate
Viettel Global may become overly dependent on imported
creates favorable conditions for Viettel Global to develop digital services
telecommunications equipment, driving up expenses.
such as mobile internet and value-added services. With this growth,
Angola becomes a promising market for the application of modern
The pace of technological advancement in Angola is relatively slow,
telecommunications and digital technologies.
partly due to its reliance on imports and a shortage of skilled labor. Conditions for Challenges:
Local technology businesses face challenges in accessing capital and Technology cycle entering new
Limited technological infrastructure: Although Angola has improved its
scaling up due to the limited financial system. The development and technology
telecommunications system, the network infrastructure remains unstable
transfer of new technologies have not been rapid enough to meet the
and unevenly distributed between urban and rural areas. This can increase
demands of innovation and competitiveness.=
the cost of deploying new technologies, especially in expanding networks to hard-to-reach areas.
Angola’s legal infrastructure for safeguarding copyrights and
Costs and technical barriers for new technologies: Due to the lack of
intellectual property remains under construction, with inadequate
domestic technological development, Angola relies heavily on importing
protections for ownership rights. This has deterred significant
technological equipment, increasing the cost of new technologies. This
investments from major technology corporations, apprehensive about Technology
will impact cost strategies and require Viettel Global to find ways to
potential infringements. The current state of intellectual property copyright policy
optimize costs to remain competitive.
protection is insufficient, exposing international businesses to
Shortage of skilled technical labor: Due to limitations in higher
substantial risks.Weak copyright policies can reduce the
education, Angola lacks skilled technology workers, which can hinder the
attractiveness of investing in new technologies or technological
deployment and maintenance of new technologies. Viettel may need to innovation.
implement training programs or recruit international labor to overcome this shortage. y
Angola's telecommunications infrastructure, while improved, remains g
inconsistent and less advanced compared to developed countries. Rural
areas, in particular, suffer from a lack of basic infrastructure and services.
The challenges of transportation and logistics, combined with the slow lo
deployment of high-tech networks, hinder the sustainable development of
the digital technology sector. Limited bandwidth and high costs of internet o Infrastructure
connectivity significantly undermine the competitiveness of domestic n
telecommunications services. The limited infrastructure drives up the
costs of building and maintaining networks. This, in turn, affects the quality h
of telecommunications services due to insufficient network stability and
coverage, hindering efforts to improve service quality in both urban and c rural areas. e T T TARGET MARKET 1 TARGET MARKET 2 E Age 15-24 years old 25-54 years old K Geographicallo
rural, sub-urban and urban area such as:Luanda, Malanje, Boa Vista,. . R cation A
Low-skilled or semi-skilled labor: Job
Students, college students, young labor
Agriculture, construction, Oil&Gas, Services, Manufacturing,. . M Maritalstatus Single, living with family Single, Married T
Although the rising inflation deeply E
impacts consumer prices (+21% in
2020 - IMF), Angolan consumers are
There is an openness to international G
increasingly searching for quality brands that resonate with the instead of price.
consumers’ aspirations and values. R Psychology
Word-of-mouth and social proof are
Long for a human connection and want A powerful marketing tools more
the same relationship with brands.- trustworthy than company
have a strong sense of community and T advertisements link cultivate family values. link
They are so engaged with short-form video
With load shedding seemingly getting more frequent, the poor internet quality has
disrupted the entertaining experience while the demand for YouTube has Pain point
skyrocketed. Viettel Global can help to fill the gap and reach consumers when they
switch to smaller screens during a power outage. 74,8% of this age group own 77,6% of this age group own smartphones smartphone
Africa’s middle class is growing, and
Most preferable platform: TikTok,
with it, purchasing power is on the Facebook, YouTube rise
Frequency of using Internet: 4 - 5 Behavior
Most preferable platforms: YouTube, hours/day Facebook, TikTok.
Be greatly influenced by keeping up
Frequency of using Internet: 4 - 5 withcurrent dance challenges hours/day trends on social networks
Usually update football events, Quick adaptors
watch daily vlogs, films series,. .