SWOT Analysis of Viettel Group

Strengths

● Stable Financial Resources:

Viettel is a state-owned enterprise with 100% government capital and a
charter capital of VND 50 trillion. In 2023, Viettel achieved over USD 7
billion in revenue, marking a 54% growth. The group contributed nearly
VND 3.9 trillion to the state budget and invests approximately VND 4.5
trillion annually in research and development. This affirms its financial
strength and sustainable development capabilities.
● Corporate Culture:
Viettel continually innovates its values, promoting a modern corporate
culture with a youthful and dynamic working environment. Previously,
Viettel’s culture was encapsulated in three values: Caring, Innovative,
and Passionate. These values have now been crystallized into a profound
brand philosophy: Diversity. Viettel's corporate culture is reflected in
eight core values:
○ Practicality as the test of truth
○ Growth through challenges and failures
○ Creativity as vitality
○ Quick adaptability as competitive strength
○ Systematic thinking
○ Combining Eastern and Western cultures
○ Traditions and the ways of soldiers
○ Viettel as a common home
○
● Brand Image:

For the 8th consecutive year, Viettel has maintained its position as the
most valuable brand in Vietnam, accounting for nearly 36% of the total
value in the top 10 most valuable brands in Vietnam. It is also the most
valuable telecommunications brand in Southeast Asia, with a brand
valuation of nearly USD 9 billion in 2023. This strong brand value
reinforces its standing in the telecommunications market.

● Organizational Structure:
As a company under the Ministry of Defense, Viettel is not only tightly
managed but also supported in fulfilling national defense and security
tasks. This creates a stable environment for business operations. Viettel
operates as a conglomerate with a parent company and multiple
subsidiaries, optimizing management processes and collaboration
between units. Each subsidiary is closely linked in carrying out the
common mission of technological advancement, and market expansion.
● Product and Service Quality:

According to a Nielsen IQ survey conducted on September 6, 2021, 85%

of customers were willing to recommend Viettel’s services to family
 members. Nielsen IQ identified service quality and pricing as the two
factors that significantly influence customer satisfaction with Viettel's
offerings. Furthermore, on December 31, 2020, the global telecom testing
company Umlaut officially named Viettel the best mobile network in
Vietnam, scoring 886 out of 1,000 based on comprehensive factors such
as coverage, speed, and latency. To date, Viettel remains the first and
only network in Vietnam to receive the Best in Test certification.

● Young and Dynamic Workforce:

As of 2023, Viettel employs over 50,000 staff across 11 countries.

According to a survey conducted by Anphabe, a professional network,
Viettel is considered "the best workplace in Vietnam." Each year, nearly
1,000 young professionals in high-tech fields choose Viettel as their
workplace. Viettel also recruits talent through initiatives like the Viettel
Digital Talent program, designed to help young talents gain expertise in
technology. By 2025, Viettel aims to become the top destination for high-
quality human resources in Vietnam and among the top 10 in Asia.
● Infrastructure and Technology:
 Viettel owns over 380,000 kilometers of fiber-optic cable and nearly
120,000 BTS stations, with 4G networks covering 97% of the population.
The group has established the largest fiber-optic network in Indochina,
leveraging wavelength division multiplexing technology to meet diverse
user needs. Viettel is also pioneering the deployment of 5G networks in
Vietnam, with successful trials in several regions.
● Corporate Social Responsibility (CSR):

Viettel is committed to reinvesting in society by aligning its business

activities with social initiatives. In 2022, Viettel allocated over VND 380
billion for CSR activities, following the vision of "Innovation for the
People." Programs like Connecting Education Network, which brings the
internet to schools, and Heart for You, have made a significant social
impact.
Weaknesses

● Bureaucratic Management Structure:

As a military-owned enterprise, Viettel's management and operations are
heavily influenced by its association with national defense and security
agencies. This results in administrative processes that can be rigid and
sometimes slow to adapt to the dynamic needs of the market. The
bureaucratic nature of certain procedures may limit the company's
responsiveness to customer demands and market shifts.
● Limited Value-Added Services:
Currently, Viettel primarily offers value-added services alongside basic
call, messaging, and fax services. However, these services remain
simplistic and lack the appeal needed to attract a broader customer base.
Additionally, in fast-growing fields like e-commerce and entertainment
(such as streaming and online gaming), Viettel has not made significant
investments, potentially missing out on lucrative market opportunities.
● Dependency on Domestic Market:
Despite Viettel’s impressive global presence, its revenue largely depends
on the domestic market. Telecom giant Viettel reported revenues of
VND172.5 trillion for 2023. In 2023, foreign telecommunications
investments contributed over USD 3 billion, but the majority of Viettel’s
total revenue still comes from Vietnam. As the domestic market has
limited growth potential, especially in a saturated telecommunications
landscape, this dependence could constrain future growth. Moreover,
reliance on the domestic market may limit the company’s access to
cutting-edge technologies available in international markets.

Opportunities

● Untapped Market Demand:

As living standards rise, the demand for IT and telecommunications
services continues to grow. According to the Ministry of Information and
Communications, 4G coverage in Vietnam has reached 99.8%. By early
2024, there were 78.44 million internet users and 168.5 million mobile
connections active in Vietnam, signaling significant opportunities for
Viettel to enhance its services and expand into unexploited market areas.
● Emerging Technological Trends:
Technological trends like 5G, artificial intelligence (AI), the Internet of
Things (IoT), and mobile money are reshaping the telecommunications
industry, encouraging telecom companies in Vietnam to shift from
traditional services to digital offerings. The Ministry of Information and
Communications has projected that by 2025, five new digital spaces,
including cloud computing, digital platforms, e-commerce, and
 cybersecurity, will match the scale of traditional telecommunications,
providing immense opportunities for growth and diversification.
● Government Policies Supporting Business Development:
Vietnam’s political stability is highly valued, creating a conducive
environment for business development. The Ministry of Information and
Communications has proposed amendments to the Telecommunications
Law and introduced the Digital Technology Industry Law, aiming to
support telecom companies like Viettel. These policies focus on
developing the digital economy, encompassing four key pillars: IT and
communication industries, digitalizing economic sectors, digital
governance, and data economy, driving rapid and sustainable economic
growth.
● Rapid Growth in Information Technology:
While the COVID-19 pandemic negatively impacted many industries, it
accelerated the development of the information technology and
telecommunications sectors. This presents a major opportunity for Viettel
to solidify its position as a leader in the market, leveraging its strong
resources and innovative young workforce to apply advanced
technologies and outpace competitors.

Threats

● Intense Market Competition:

In Vietnam, Viettel faces stiff competition from two major players:
Mobifone and Vinaphone. Both rivals have well-established
infrastructures and large customer bases, often utilizing competitive
strategies like pricing promotions and enhanced customer services to gain
market share. This fierce competition forces Viettel to continuously
innovate and improve its services to retain customers.
● Risks from Industry Decline:
The global mobile telecommunications industry has been in decline for
several years, with revenues from voice and SMS services falling sharply.
In Vietnam, the average revenue per user (ARPU) is among the lowest in
Asia, ranging between VND 59,000 and VND 63,000 per month. As
traditional services decline, telecom companies are being pushed to shift
toward new services like OTT (over-the-top) platforms, and digital
services. The rise of 5G, IoT, and AI technologies presents both
opportunities and challenges, as Viettel must rapidly adapt by developing
a high-quality workforce.