Vietnam is the next China in terms of emerging hot economies, according to Yankee Group. Currently, Vietnam is fueling Asia-Pacific data connectivity demand, with a CAGR of 39.5 percent between 2007 and 2012. As total corporate data revenue rises in Vietnam, there is tremendous growth potential for the country’s data networking market.

According to the recently published Yankee Group Report, Vietnam’s Telecom Business is on the Fast Track, Vietnam’s data networking market was nascent in 2007 with revenue less than $150 million. Today, there are several development imperatives that are keeping Vietnam’s data networking business thriving.

The five core developmental drivers include:

• Vietnam’s WTO accession is sparking pro-growth measures.
• Bandwidth enhancement is well under way.
• Vietnam is investing in next-generation technology for growth and transformation.
• Vietnam is leveraging the strength of telecom provider ACASIA to define new business goals.
• Foreign operators are taking a stand in Vietnam’s telecommunications industry.

"Vietnam is a newcomer to the global connectivity revolution as communications and services continue to improve," said Agatha Poon, senior analyst, Yankee Group Enterprise Research group. "Vietnam is expected to fare better than other ASEAN countries in data revenue because of the government’s determined commitment to drive innovation and competition in the country."

Vietnam’s telecommunications players must continue to ascertain the government’s involvement specific to the post-WTO accession to stay competitive in the marketplace. Until Vietnam conforms to the WTO mandates, foreign investors must play an active role in working with the regulatory body to define the ownership arrangement.

About this study

The Yankee Group market research report, "Vietnam’s Telecom Business is on the Fast Track," studies the telecommunications growth opportunity in Vietnam, a new emerging market in the global economy. It investigates the foundation of Vietnam’s data connectivity growth and provides recommendations for carriers and enterprises seeking to tap into this new market.

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