The recent buzz surrounding the 2G network shutdown in Vietnam has sparked interest among investors. According to a recent analysis report, Vietcap anticipates an increased demand for enhanced 4G coverage due to the planned shutdown of 2G networks in September 2024 and 3G networks by the end of 2028. Additionally, the successful auctions of three frequency bands in March and July 2024 are expected to lay the foundation for the deployment of 5G in Vietnam, starting in the second half of 2024.
Given that 4G and 5G have lower coverage ranges compared to 2G and 3G, denser telecommunications infrastructure is required to maintain signal coverage. Vietcap predicts that the number of telecommunication stations owned by Viettel Construction (CTR) could triple from its count at the end of 2023, reaching approximately 20,000 by the end of 2026. The expected compound annual growth rate (CAGR) for the period of 2023-31 is an impressive 22%.
Vietcap also foresees that Viettel Construction’s co-location ratio will gradually reach 1.20 by the end of 2031, up from 1.03 at the end of 2023. With the three telecommunication companies set to deploy 5G in the latter half of 2024, co-location of stations will facilitate their 5G implementation. Consequently, Vietcap projects a robust 27% CAGR for EBITDA in the telecommunication station rental segment during 2023-31.
Viettel Construction has been Vietnam’s largest telecommunication infrastructure leasing company (TowerCo) since 2022 and continues to hold this position. As of the end of July, Viettel Construction possessed 8,221 BTS stations, 2.45 million m2 of DAS, 2,716 km of transmission lines, and 16.92 MWp of solar power. A total of 270 BTS stations are leased to more than one telecom operator.
Beyond TowerCo, Viettel Construction’s construction segment is also anticipated to maintain its growth trajectory, driven primarily by the civil construction segment. This is attributed to expectations of a more favorable real estate market from 2024 onwards, increased construction coverage in the B2C segment, and a growing backlog in the B2B segment.
For 2024, Viettel Construction has set ambitious targets, aiming for a total revenue of 11,653 billion VND, an 11% increase compared to the previous year. They project a pre-tax profit of 671.4 billion VND and a post-tax profit of 531.7 billion VND, reflecting a 4% and 3% growth, respectively, over the previous year. If these plans come to fruition, Viettel Construction will break its profit records.
Despite acknowledging the challenges in the market, Viettel Construction remains optimistic about the year ahead. They believe that policies aimed at attracting foreign investment and easing difficulties in the real estate sector, along with the Ministry of Transport’s approval for Viettel to implement underground cable routes along the North-South expressway, will create favorable opportunities for the company to thrive. Additionally, factors such as increased base salary and anticipated improvements in the retail market are expected to contribute to their success.
In the first seven months of the year, Viettel Construction witnessed double-digit growth in revenue across all its major business segments, except for operations and exploitation. The company estimates revenues of over 6,777 billion VND and pre-tax profits of 363.3 billion VND, an 11% and 4% increase, respectively, compared to the same period last year. With these results, Viettel Construction has accomplished 54% of its annual business plan.
This year, Viettel Construction is focused on executing its “Go Global” strategy for the new phase, aiming to sign economic contracts with 1-2 foreign partners. The company is not only targeting markets where Viettel has investments but is also expanding its horizons to larger markets such as Australia, South Korea, and Europe.
The most extensive bribery case ever in Thanh Hoa: Numerous suspects prosecuted for “Giving and Receiving Bribes”
The Provincial Security Investigation Agency (PSIA) of Thanh Hoa province announced on January 31st that it has made the decision to initiate a prosecution against 23 individuals in connection with the offenses of “Accepting bribes” and “Giving bribes” as stipulated in Article 354(3) and Article 364(2) of the Criminal Code.
Accelerating disbursement of the 120 trillion VND credit package for social housing
Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
“Prosecution of government officials, land registration officers, and tax department employees in the largest bribery case ever”
The Thanh Hoa Police Investigative Agency has initiated legal proceedings against 23 individuals involved in the crimes of “Bribery” and “Receiving bribes”. This is the largest bribery case in terms of the number of suspects ever discovered and apprehended by the Thanh Hoa Police.
Mobile World achieves revenue of VND118,000 trillion: TVs, tablets, and phones all decrease by 10% – 50%, while one product grows in both quantity and revenue.
Mobile World Investment Corporation (MWG) has recently announced its 2023 business results. According to the report, the company’s consolidated revenue reached over 118 trillion Vietnamese dong, equivalent to 89% of the revenue in 2022.
Vietnam’s Irresistible ‘Specialty’ That China Desperately Wants to Revive: Highly Popular from the US to Asia, Bringing in Millions of Dollars
Vietnam is one of the largest exporting countries in the world, along with China and the Philippines.
