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Vietnam's 5G network reaches 3 million users in rapid urban expansion
Vietnam's 5G network has gained three million users in two weeks, driven by Viettel's automatic upgrade strategy that enables users with compatible devices to transition from 4G in urban areas.
As of Thursday, military-run Viettel Telecom reported three million 5G users, with the largest concentrations in Hanoi, Ho Chi Minh City, Binh Duong, Dong Nai, and Hai Phong, accounting for nearly 50% of total 5G subscriptions.
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A person tests the 5G internet speed on their mobile phone using the Speedtest app in Hanoi, Oct. 15, 2024. |
VinaPhone and MobiFone are also offering 5G trials, though they have not disclosed subscriber numbers.
Viettel noted that 5G subscriber growth is "twice as fast" as its 4G rollout seven years ago. In 2017, Viettel's 4G network reached three million users in a month with 36,000 stations—a count 5.5 times higher than the current number of 5G stations.
Viettel commercialized 5G on Oct. 15, with initial users recorded in late September and early October. According to the carrier, subscriber numbers surged following the official launch date.
The automatic upgrade, or "do nothing" approach, has fueled rapid growth, enabling users to access 5G without changing their SIM or signing up for a new plan. The only requirements are a compatible device and access to a coverage area.
An expert in Vietnam's telecom industry, who requested anonymity, said this method helped boost active 5G users quickly, though it may not fully reflect actual demand. "Some users counted as 5G subscribers may not actually need it but are included as they're within the coverage area," he said.
He added that genuine interest could be better measured by the number of users subscribing specifically to 5G plans.
Although Viettel has not disclosed detailed numbers, it reported "hundreds of thousands" of registrations within two weeks, with most opting for packages priced between VND135,000 and VND300,000 (US$5.34-11.86) per month.
Some 4G phone users have also opted for 5G due to lower data rates, a trend observed in many global markets, according to a Viettel representative.
However, with the automatic upgrade strategy, growth rates may slow as most eligible users have transitioned.
According to Ookla analyst Affandy Johan, Vietnam’s 5G development will rely on factors such as coverage expansion, availability of 5G-compatible devices, and service fees.
Viettel acknowledged that device compatibility is a challenge for 5G expansion, with only about 15% of devices on the network currently 5G-capable, mostly concentrated in urban areas. Although 5G service is available across all 63 provinces, coverage remains focused on major cities and provincial capitals.
Two weeks post-launch, Vietnam's 5G network is recognized for its fast download speeds and low latency, improving experiences that 4G cannot fully support, such as 8K video streaming and virtual reality content. Data rates are also lower than for 4G. However, users have reported limited coverage, fluctuating speeds, and concerns over heat and battery drain.
A Viettel representative explained that 5G operates on higher frequency bands with shorter coverage range, and the current number of stations is lower than for 4G. The company assured that as infrastructure expands and optimization continues, 5G performance will stabilize.
Prime Minister Pham Minh Chinh on October 12 stressed the need to promote three strategic breakthroughs of digital institutions, digital infrastructure, and digital human resources to enable Vietnam to catch up with other nations, advance, and thrive in the new era.
This year’s National Digital Transformation Day theme is “Popularising digital infrastructure and creating digital applications for digital economic development – New driver for economic and productivity growth”.
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Prime Minister Pham Minh Chinh, who is also Chairman of the National Committee for Digital Transformation, has called for robust digital transformation based on two key pillars of internal administrative procedures and public services for citizens and businesses.
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