Vietnam's telecommunications industry is set to receive a significant boost with the implementation of special government policies aimed at accelerating 5G deployment.

The government has introduced financial incentives for telecom providers that rapidly expand their 5G infrastructure.

Companies that establish at least 20,000 operational 5G base stations by the end of 2025 will be eligible for subsidies covering 15% of equipment costs.

On February 19, the National Assembly passed a resolution approving several special policies and mechanisms to advance technological innovation, digital transformation, and scientific development. A key component of this resolution focuses on fast-tracking the nationwide 5G rollout.

Under the newly approved policy, the total financial support for telecom providers will not exceed the revenue generated from the auctioning of radio frequency usage rights in 2024.

The government aims to provide financial relief and encouragement to firms willing to make significant investments in Vietnam’s 5G infrastructure.

The resolution also includes incentives for the development of undersea communication cables connecting Vietnam to international networks.

Vietnamese telecom providers participating as investors or stakeholders in these projects will benefit from streamlined approval processes.

Such investments will follow standard domestic project regulations and must comply with national security requirements.

To ensure rapid implementation, the government has approved the use of direct contracting for critical infrastructure projects related to international undersea cables.

If direct contracting is not applied, bidding processes will follow international investment norms, with agreements made between Vietnamese telecom providers and foreign investors.

Speaking at a conference attended by technology associations and industry leaders, Minister of Information and Communications (now Minister of Science - Technology) Nguyen Manh Hung emphasized the urgent need for widespread 5G coverage.

He highlighted that telecom companies have been expanding cautiously, deploying approximately 5,000 new stations each year. However, to meet the goal of full nationwide coverage, at least 20,000 5G stations need to be deployed in 2025.

The government’s commitment to subsidizing 15% of total 5G investment costs for eligible companies represents an unprecedented level of support for telecom firms.

The minister also addressed Vietnam’s need to expand its undersea cable network, which currently faces reliability risks.

Encouraging domestic companies to invest in new routes and infrastructure will enhance Vietnam’s network security and connectivity.

According to Rita Mokbel, Chairwoman of Ericsson Vietnam, 5G technology will play a crucial role in Vietnam’s digital transformation. She noted that 5G has the potential to revolutionize multiple industries, including manufacturing, logistics, and smart city development.

Additionally, private 5G networks will allow businesses to innovate while reducing operational costs, providing telecom companies with new revenue opportunities.

"5G will be a key tool for Vietnam to achieve its digital economy goals, which are expected to contribute 20% of the country’s GDP by 2025," Mokbel said.

Vietnam’s major telecom providers have already made significant progress in 5G deployment. Viettel, the country's largest telecom company, has installed over 6,500 5G base stations, providing coverage across all 63 provinces and key locations such as industrial zones, ports, airports, hospitals, and universities.

Viettel’s 5G service delivers speeds of 700 Mbps to 1 Gbps - ten times faster than 4G - with near-zero latency, enabling applications such as autonomous vehicles, remote surgery, and smart manufacturing.

As of January 2025, Viettel reported 5.5 million 5G subscribers, bringing it closer to its goal of 10 million users by the end of the year. This rapid adoption underscores the growing demand for 5G services in Vietnam.

VNPT, another major telecom operator, has also made strides in expanding 5G coverage. The company has announced that its network now covers the central areas of all 63 provinces, 705 district-level administrative units, and key industrial and commercial zones. VNPT currently serves approximately 3 million 5G subscribers.

Meanwhile, MobiFone, despite not yet officially launching its 5G services, has begun offering 5G connectivity to customers. The company is expanding its telecom infrastructure and increasing its 5G spectrum capacity, with a long-term goal of providing coverage to all communes across Vietnam.

With substantial government support and aggressive expansion strategies from telecom providers, Vietnam’s 5G landscape is poised for rapid transformation, positioning the country at the forefront of Southeast Asia’s digital revolution.

Thai Khang