Viettel goes fully global

It is reportedly set to materialise 15-20 per cent growth targets this year, with revenue surpassing VND160 trillion ($7.6 billion) and profits of VND34.6 trillion ($1.6 billion). Of this, over $1.1 billion will come from outbound investments with three key markets Cambodia, Laos and Mozambique.

Last year, the military-run telco group reaped $734 million in revenue from telecom services in outbound markets, a 41 per cent jump on year and transferred $77 million profits to Vietnam, a four-fold increase over 2011, according to Viettel’s deputy general director Nguyen Manh Hung.

A Viettel executive said the group planned to make forays into 10-15 foreign markets during 2013-2015 and contribute more than VND40 trillion ($1.9 billion) to the group’s overall revenue.
As planned, the telco will acquire licences to tap several new outbound markets right in 2013.

To date, Viettel was and is doing business in seven outbound markets, including Cambodia, Laos, Haiti, Mozambique, Peru, Cameroon and East Timor. Most recently in 2012, Viettel acquired licences to set footholds in Cameroon and East Timor and is reportedly serving over 60 million foreign subscribers with diverse trademarks – Metfone in Cambodia, Unitel in Laos (Asia), Natcom in Haiti and Movitel in Mozambique (Africa).

It is striving to have around 400-500 million subscribers in foreign markets by 2015 which will be bigger than its domestic customers, according to a Viettel development plan which was made public.

Viettel’s deputy general director Le Dang Dung said Africa remained the group’s strategic market for outbound investments.  Thereby, in parallel to Mozambique, Viettel is developing telecom network in Tanzania after spending over $18 million to acquire 65 per cent stake in Epocha & Golden Ocean Tanzania Limited (Egotel) from BITMAP Pte Ltd. which has placed its headquarters in Singapore.

The group also showcases interests in handset markets in diverse countries like Myanmar, Bangladesh, North Korea, Cuba, Paraguay and Venezuela and is striving to make inroads in Mali.

In respect to why Viettel’s target markets are mostly developing nations a Viettel representative explained despite facing big challenges the group had certain advantages when tapping developing markets.

“Difficulties bring opportunities as not many people dare to take on challenges. We have posted successes in poor markets through optimising investment costs, diligent and creative labour,” said a Viettel executive.

Outbound market revenue constitutes an increasing portion in Viettel’s revenue structure, from 7.1 per cent in 2010 to 9 per cent in 2011 and 11 per cent in 2012. This year, outbound market revenue is expected to account for 15 per cent of the group’s total revenue.

“Tapping foreign markets is Viettel’s long-term strategy and a way to sustain growth striving for sustainable development. Besides, it lays the premise for investment in other areas like terminal equipment market, content services and cable television,” said Viettel’s deputy general director Duong Van Tinh.