VietNamNet Bridge - Vietnam’s mobile industries have outstripped growth forecasts by regional experts despite a year of economic turmoil. Roger Barlow, chairman and CEO of RJB Consultants Limited, said some analysts predicted that growth would slow after 2007.

Vietnam’s mobile sector will continue to offer rich pickings

The cellular market has posted skyrocketing growth over the last four years, going from four million users by the end of 2004, to 37 million by the end of 2007. Vietnam remains one of the fastest growing markets in Asia. Demographic trends suggest that the boom will continue for at least the next five years, and probably longer.

“By 2012, we forecast the total 89 million mobile market is achievable in Vietnam. Mobile penetration of about 99 per cent is possible in that timeframe,” said Barlow. The drivers of the growth include lower priced handsets and service plans, increased competition among five GSM networks, network expansion into rural areas, convergence between mobile and fixed networks, broadcast capabilities and data usage through 3G deployments.

The two biggest mobile operators are cashing in on new mobile subscribers every day. Viettel reported 60,000 new mobile subscribers per day and MobiFone around 40,000 users. Viettel holds a 40 per cent market share, MobiFone (28 per cent) and Vinaphone (25 per cent) in the first half of this year. “Viettel has become a powerful player in a short space of time,” said Barlow.

(Source: VIR)