According to the Vietnam Telecom Operators Country Intelligence report, total telecom service revenue in Vietnam reached USD 6.4 billion in 2023, with an anticipated market size growth at a CAGR of over 4% from 2023 to 2028 (Source: Mordor Intelligence). 

This growth is driven by increasing demand in mobile data and fixed broadband service segments, alongside initiatives such as the National Digital Transformation Program – 2025, which promotes digital business strategies and provides incentives for enterprises, government administrations, and manufacturing sectors to embrace digital transformation. 

The Vietnamese Telecom Market is moderately fragmented due to ongoing partnerships and recent technological advancements. Key players include Vietnamobile, Viettel, EVNTelecom, AT&T, and MobiFone (Source: Vietnam Briefing).

Insights from GlobalData's report highlight industry trends, such as the decline in mobile voice service revenue due to a drop in ARPU and the rise of OTT platforms. Conversely, mobile data service revenue is projected to grow at a healthy CAGR of 13.5%, fueled by an increasing number of mobile users. The launch of 5G services in 2023 has further elevated mobile data service ARPU and overall revenue growth.

The amended Telecommunications Law, passed in November 2023, aims to improve service quality, protect consumer rights, ensure tighter security, and encourage infrastructure development. In this context of digital transformation, Vietnam’s telecommunications industry faces significant transitions and growing competition.

In this rapidly evolving telecommunications environment, revenue generation remains both a challenge and an opportunity for telcos. As mobile technology advances and customer preferences shift, maintaining profitability is crucial for driving innovation, network enhancement, and service improvement. Effective revenue generation not only ensures telco-competitiveness but also contributes to the digital economy's growth.

Telcos in Vietnam are continuously refining their revenue generation strategies to better reach consumers via mobile advertising. Breakthrough technologies like the moLotus mobile video customer interaction platform play a crucial role in this domain. moLotus stands out in mobile advertising, helping telecom operators boost customer acquisition, reduce churn, and enhance subscriber bases, thereby boosting average revenue per user by 2 to 4 per cent without requiring mobile apps or data plans.

In this dynamic landscape, implementing robust revenue generation strategies is essential for telcos to thrive and remain resilient. Here are five key steps telecom operators can take to boost their revenues in Vietnam.

1. Elevate Customer Experiences Through Digital Transformation

In September 2021, the Ministry of Information and Communications (MIC) introduced the "National Digital Transformation Program by 2025," extending its vision to 2030. This program accelerates digital transformation by altering business approaches and offering incentives to drive digital adoption in enterprises, government operations, and manufacturing (Source: GlobalData Plc).

With the Vietnamese government actively promoting digital transformation, it has become a strategic imperative for all telcos to thrive. By harnessing the power of technology, telcos can modernize their services, elevate customer experiences, driving robust revenue generation.

A compelling instance of this transformation is the integration of AI-driven chatbots to revolutionize telco customer support. These intelligent assistants operate around the clock, promptly addressing inquiries and swiftly resolving concerns. 

moLotus AI-powered brand avatars serve as virtual spokespersons, providing efficient and personalized customer support, resolving customer issues faster and reducing customer churn. Satisfied customers are more likely to stay with the telecom service provider and potentially opt for higher-tier plans or additional services. The brand avatars can boost ARPU by improving customer service, sales, self-service, data insights, and reducing costs.

Viettel's deployment of AI-powered chatbots showcases their ability to handle routine queries while comprehending natural language, providing personalized solutions that resonate with individual subscribers.

Moreover, the adoption of digital self-service platforms marks another facet of this transformation journey. These platforms empower subscribers to effortlessly manage their accounts, settle bills, and tailor services through intuitive interfaces. Vietnamobile's user-centric app, for instance, allows subscribers to exert effortless control over their services, personalizing plans and accessing additional features seamlessly.

Pioneering the path of digital evolution, Vietnam's telcos have embraced innovative solutions that cater to the dynamic needs of consumers. A standout transformational solution is the moLotus. Operating on GSM technology, this platform directly reaches mobile handsets, regardless of the device model or the presence of an app or data plan. moLotus empowers telcos to deliver immersive media content like videos and personalized messages, effectively engaging customers on an entirely new level. This transformative technology not only enhances customer interaction but also creates novel revenue opportunities for telcos.

One striking example is moLotus's capability to automate and transform various customer processes, including payment and service reminders, loyalty programs, contract renewals, and customer onboarding. By seamlessly integrating with telcos' operations, moLotus propels them into the modern digital landscape, surpassing customer expectations and elevating both top-line and bottom-line performance at significantly reduced costs.

In essence, the best mobile operators in Vietnam are embracing digital transformation not just as a necessity but as a catalyst for revenue growth and differentiation.

2. Tapping into Mobile Advertising Potential

The mobile advertising landscape in Vietnam presents telcos with a golden opportunity to drive revenue growth through collaboration with advertising platforms. With smartphone penetration rapidly increasing, the mobile advertising sector is witnessing remarkable growth. According to Statista, mobile advertising spending in Vietnam reached USD 1,201 million in 2023, up 21.6% from USD 985 million in 2022. The number of mobile internet users reached around 161.6 million in 2023, creating an expansive audience for targeted mobile ads.

The market, however, is fragmented, with key players like Google, Facebook, Vinagame, and Adtima dominating various segments. Google holds about 60% of the market share, followed by Facebook at 20%, Vinagame at 10%, and Adtima at 5%. Despite their extensive reach, platforms like Google Ads and Facebook Ads often come with higher costs and challenges related to ad blockers and privacy concerns, which can limit the effectiveness of these platforms for Vietnamese telcos.

moLotus, a breakthrough tech platform, is gradually excelling among other advertising platforms in offering enhanced targeting and personalization capabilities to Vietnamese telcos. moLotus's technology enables telco marketers to reach customers directly through personalized video messages in their mobile inboxes, regardless of phone type or model. These hyper-personalized mobile ads cater to individual preferences and needs. For instance, a telecom brand can send personalized video offers to customers based on their past data usage patterns or plan preferences, leading to higher customer satisfaction and loyalty. 

Vietnamese telecom operators can craft engaging and profitable mobile advertising campaigns through moLotus, utilizing user-friendly response options like URL Click, USSD, SMS, mgram, Call, and more. This innovative tool enhances visual communication by offering a diverse range of rich media formats such as videos, brochures, greetings, slideshows, and showcases. They can incorporate product images, voice-overs, music, and other elements to create captivating storyboards and impactful mobile videos, all within a concise timeframe of up to 40 seconds.

Operators, still relying on traditional advertising channels like social media, email, etc. for running their ad campaigns, can get respite from the burgeoning costs by executing the same campaigns at reduced costs and higher ARPU via moLotus Shadow Marketing.

Experts suggest telcos harness the high-margin revenue potential of mobile advertising platforms like moLotus as early as possible. This collaboration not only enhances customer interaction and engagement but also drives substantial revenue growth in 2024 and beyond.

The mobile advertising boom in Vietnam provides a lucrative opportunity for telcos to partner with platforms such as moLotus, Google Ads, and Facebook Ads. By leveraging these collaborations, telcos can effectively engage their subscriber base, capitalize on the growing mobile advertising market, and create a win-win scenario that benefits both telcos and advertisers.

3. Boosting ARPU with Innovative Strategies

Telecommunication networks in Vietnam are seeking fresh strategies to boost their business by raising the average revenue per user (ARPU). This has become a major challenge for the telcos here. In 2023, some Vietnamese telecom providers saw growth in both their customer numbers and revenues. However, sustaining this growth this year is proving tough, especially with economic pressures on the horizon.

Unfortunately, the average revenue per user (ARPU) is projected to decrease in Vietnam's telecom industry in 2024. There are several reasons for this. One major factor is the increasing use of over-the-top (OTT) services like WhatsApp, Facebook Messenger, and Netflix. These services let users communicate and watch content without using mobile data, which is causing the ARPU to drop.

As living costs rise in Vietnam, household budgets are tightening. People are cutting back on their spending on telecom services, which also contributes to the ARPU decline.

Experts suggest that Vietnamese telcos should treat their customers better by integrating innovative marketing tech like moLotus. By doing this, they can engage customers more effectively, provide greater value, and enhance every stage of the customer journey, leading to a swift ARPU increase.

Studies reveal that many telecom brands in Asia like Indosat Ooredoo Hutchinson, Digi, Maxis, and Airtel have seen consumer revenues soar by two to four per cent after embracing moLotus. Through moLotus's innovative marketing, telecoms are improving customer response, revenue, and overall business performance while minimizing costs. The technology is boosting cross-selling, upselling, and add-on campaigns, ultimately increasing customer lifetime value and ARPU.

In 2024, Vietnam's telecom industry leaders seem optimistic that incorporating moLotus's advanced features will benefit their telecom businesses, leading to a significant ARPU uplift.

4. Subscriber Data Monetization

Subscriber data has become increasingly valuable for Vietnam's telcos, offering a strategic pathway to generate additional revenue streams. By leveraging insights derived from subscriber actions and preferences, telcos can deliver targeted ads, personalized services, and valuable insights to advertisers and businesses.

In 2023, the total revenue from subscriber data monetization in Vietnam reached USD 2.4 billion, marking a 15% increase from USD 2 billion in 2022. Viettel leads the market with approximately 40% share, followed by Vinaphone at 25% and Mobifone at 15%.

Vietnamese telcos now have access to Innovative tools like moLotus that can harness telecom subscriber data to create customized, engaging, and automated rich media campaigns. This data provides valuable insights for various applications, enhancing revenues and informing strategic decisions.

By simplifying processes, moLotus drives mobile advertising and improves customer processes, thereby boosting ARPU and strategic effectiveness. Anonymized subscriber data can be shared with advertisers, allowing them to tailor campaigns precisely for their target audiences. Telcos can transform this data into a revenue stream by offering segmented data access to advertisers while maintaining customer privacy.

Additionally, platforms like Google Analytics help telecom players in tracking customer actions and collecting data, offering insights into their behavior and demographics. Analyzing this data enables telcos to offer advertisers specific audience segments for targeted campaigns, thereby increasing value for advertisers and generating revenue for themselves.

Facebook Audience Insights also allows telcos to analyze user data from interactions with Facebook assets, helping to create detailed customer profiles. This segmentation enables effective data monetization by allowing advertisers to design targeted campaigns, enhancing engagement and revenue for telcos.

5. Creating Synergistic Alliances with Technology Platforms

For the Vietnamese telecom industry, nurturing strategic alliances with technology platforms offers a promising path to enhance revenue streams. Partnering with the right tech entities can facilitate telco expansion, granting access to more customers and leveraging complementary expertise and resources.

These collaborations allow telcos to tap into the existing customer bases of their partners. Aligning with entities that share a similar target audience but offer distinct products or services enables telcos to extend their reach to a wider pool of potential customers. This expanded outreach leads to increased brand visibility and a more effective generation of advertising revenue.

Strategic partnerships with trusted technology platforms like moLotus can significantly enhance the telco brand image. Such collaborations boost credibility, trust, and consumer confidence, ultimately increasing customer loyalty and driving stronger revenue growth.

Collaborating with moLotus, for example, allows telcos to leverage the platform's resources, knowledge base, and technical expertise. This cooperative approach can result in cost efficiencies, streamlined operational effectiveness, and access to valuable insights. Telcos can utilize extensive customer data to send targeted ads directly to subscribers' mobile inboxes, without requiring app downloads or data plans.

Additionally, Vietnamese telecom operators can innovate by creating unique value propositions for nationwide audiences. This could include joint promotional campaigns, bundled offerings, or exclusive discounts for customers of both collaborating brands. These symbiotic ventures can differentiate telcos from their competitors, attract new enterprise clients, and establish new revenue streams. By partnering with moLotus, telecoms can explore new markets across various industries or target specific demographics.

Conclusion

Vietnamese telecom operators must adopt innovative strategies to boost revenues. Embracing digital transformation, leveraging mobile advertising, enhancing customer experiences, monetizing subscriber data, and forging strategic tech alliances are key steps. 

Now is the time for Vietnamese telcos to seize these opportunities, adapt to change, and propel their business towards greater profitability. Embrace cutting-edge solutions like moLotus to unlock new revenue streams and redefine success. The future of telecom revenue growth is here—are you ready to leap?