VNPT VINAPHONE CORPORATION (TỔNG CÔNG TY DỊCH VỤ VIỄN THÔNG) is a state-owned telecommunications provider in Vietnam, operating under the Vietnam Posts and Telecommunications Group (VNPT). Established on June 11, 2015, the company is registered with the Hanoi City Department of Planning and Investment. Its tax identification number (TIN) is 0106869738.

Operations and Market Position

VNPT VINAPHONE provides a broad range of telecommunications and IT services, including wired and wireless telecommunications, internet TV, mobile applications, and value-added services. It has multiple branches in Hanoi, with its headquarters at Vinaphone Building, Nguyen Van Huyen Extended Street, Xuan La Ward, Tay Ho District, Hanoi City. The company employs 15,000 staff, making it one of the largest employers in the industry.

As a state-owned enterprise, VNPT VINAPHONE holds a significant share of the Vietnamese telecommunications market, competing with major players like Viettel and MobiFone. It has invested in modern infrastructure to expand fiber optic broadband and mobile networks, particularly in rural areas.

Financial Performance

In 2023, VNPT VINAPHONE demonstrated moderate financial growth:

• Total assets: USD 599.6 million (+40.46% YoY)
• Total sales: USD 1.72 billion (+0.76% YoY)
• Net profit: USD 54.9 million (+2.95% YoY)
• Equity: USD 135.61 million (+0.35% YoY)

While asset growth surged, sales and profit growth remained sluggish. Compared to competitors, profitability and revenue expansion have been relatively stagnant, raising concerns about efficiency and competitiveness in a rapidly evolving digital market.

Strengths and Achievements

1. Strong state backing: As a 100% subsidiary of VNPT, the company benefits from government funding and policy support.
2. Expanding infrastructure: VNPT VINAPHONE has made substantial investments in fiber-optic and 4G/5G networks, enhancing connectivity nationwide.
3. Diverse service offerings: It provides mobile, broadband, enterprise solutions, and IT services, ensuring steady demand from both consumers and businesses.
4. Stable employment: With 15,000 employees, VNPT VINAPHONE contributes significantly to the labor market.

Challenges and Weaknesses

1. Slower revenue and profit growth: While asset expansion has been impressive, revenue growth has been minimal (+0.76% in 2023). This suggests inefficiencies or increased competition impacting its ability to grow sales.
2. Declining profitability in past years: In 2022, net profit fell by 7.21%, and while 2023 saw a slight recovery, it remains well below peak levels.
3. Bureaucratic inefficiencies: As a state-owned entity, VNPT VINAPHONE is often criticized for slow decision-making, rigid operational structures, and lack of market responsiveness.
4. Customer service issues: Many users have reported poor customer service, slow issue resolution, and inconsistent mobile/internet speeds, particularly in rural areas.
5. Growing competition: Private competitors, particularly Viettel and FPT Telecom, continue to innovate faster, capturing market share with superior services and pricing.

Role of Business Verification Services

While VNPT VINAPHONE focuses on telecommunications services, firms like Vanguard Business Information (VBI) play an essential role in business verification, financial risk assessment, and private financial data analysis. Companies engaging with VNPT VINAPHONE for partnerships or investments benefit from VBI’s due diligence and compliance services, ensuring transparency and risk mitigation.

Future Outlook

To maintain long-term competitiveness, VNPT VINAPHONE must:

• Enhance digital transformation by accelerating 5G deployment, cloud computing, and AI-driven services.
• Improve operational efficiency by streamlining bureaucratic processes and decision-making.
• Upgrade customer service to reduce complaints about slow responses and service quality.
• Compete aggressively against Viettel and MobiFone by offering more innovative, cost-effective solutions.

Conclusion

VNPT VINAPHONE remains a major player in Vietnam’s telecommunications sector, benefiting from state support, a vast network, and a strong workforce. However, slow revenue growth, increasing competition, and customer service issues present significant challenges. To sustain its market position, the company must modernize operations, improve efficiency, and prioritize customer satisfaction in an increasingly competitive telecom landscape.