General overview of Viettel
With 76 million users, the military telecommunications firm Viettel is presently the biggest telecommunications business in Vietnam The Group is made up of more than
20 businesses that operate in a variety of industries such as telecommunications, investment, real estate, international commerce, and technical services.
Viettel generate 11.8 billion USD in sales and 1.7 billion USD in profit in 2021,making it one of the most profitable firms in Vietnam.
Business activities
Main lines of business: providing telecommunications, mobile, Internet-TV services, digital applications, information technology, postal, communication, and delivery
The company operates in various related business sectors, including material trade, distribution, retail, equipment, information goods, information technology, and communication, alongside finance, banking, and real estate Additionally, it focuses on training and supplying human resources to bolster the Group's manufacturing and commercial activities both locally and internationally.
Goals and Missions
Goals
The essence of our mission lies in progress, fueled by reform and anchored in humanity, peace, and unity Among these interconnected elements, unity stands out as paramount At Viettel, solidarity means that every individual and division aligns their thoughts and actions with a shared consensus, prioritizing the collective interests and future of the organization above all else.
Missions
Viettel embraces the philosophy of "Creation for People," emphasizing the importance of valuing each consumer as a unique individual deserving of appreciation, care, and understanding The foundation of Viettel's success lies in its commitment to social responsibility, as the company actively reinvests in society through initiatives that enhance healthcare, education, and poverty alleviation, seamlessly blending its manufacturing and economic efforts with meaningful social contributions.
Viettel is committed to serving its customers, partners, investors, and society, which is evident in every aspect of the company's operations This commitment forms the core of Viettel's mission to foster innovation and create a company that benefits people.
Milestones of Viettel Global
Viettel Global Investment JSC, founded on October 24, 2007, operates under Business Registration Certificate no 0102409426 issued by the Hanoi Department of Planning and Investment, with an initial share capital of 960 billion VND.
1/2008: Viettel Global received the investment project in Cambodia from Viettel
2/2008: Viettel Global concluded a joint venture contract with Lao Asian Telecom
(LAT) to establish Star Telecom Co., Ltd in which Viettel holds 49% share capital, officially started investment in Laos.
2/2009: official launch of telecommunications network in Cambodia, started business operation and services provision in the country.
10/2009: official launch of telecommunications services in Laos.
2/2010: establishment of Viettel Overseas Co., Ltd to implement the investment project on the expansion of the telecommunications network in Haiti.
11/2010: Viettel Global won the tender of the investment project of a telecommunications network in Mozambique.
9/2011: official launch and started business operation of telecommunications services in Haiti.
5/2012: Official launch and started telecommunications services provision in the
7/2012: Viettel Global won the tender of an investment license in East Timor. 12/2012: Viettel Global won the tender of the 3rd mobile license in Cameroon.
3/2013: Official launch of mobile services in East Timor.
8/2013: Viettel Global’s Extra-Ordinary Shareholders Meeting made decision on 3 major issues:
- Change the Company’s Vietnamese name from: “Company” to “Corporation”
- Increase share capital from VND 6,219,052,000,000 up to VNĐ 12,438,112,000,000
- Supplement: "Rent of machines, equipment and other tangible facilities" to the Business Registration of the Company.
2/2014: Receive investment license in Burundi.
9/2014: Official launch of mobile services in Cameroon
10/2014: Official launch of mobile services in Peru
ANALYSIS OF VIETTEL'S BUSINESS ENVIRONMENT IN LAOS
Macro-environmental analysis – Pestel Model
The Lao People's Democratic Republic is a politically institutional state that leads and implements a centralized form of democracy The only legitimate political party is the Las People's Revolutionary Party.
The Lao People's Army, despite its small size and limited budget, plays a crucial role in maintaining border and domestic security, primarily targeting Hmong rebel groups and opposition forces As a key component of the Lao People's Revolutionary Party and the government, it serves to prevent political and civil unrest With no external threats facing Laos, the army also fosters strong relations with Vietnam, reinforcing its strategic position within the state apparatus.
Laos has maintained a stable political environment and social order for many years, which is reflected in the key policies of the Party and State This stability presents a favorable opportunity for investment and business activities, particularly attracting interest from Vietnam However, like other socialist nations, Laos's commitment to socialism has influenced the perceptions and psychology of investors from similar countries.
Investing in Laos presents significant challenges for enterprises, primarily due to the ongoing revisions and updates to the legal system governing investments This evolving landscape often results in inconsistencies, a lack of transparency, and difficulties in accessing crucial information, which collectively hinder the smooth execution of projects in the country.
The Lao government has established a comprehensive legal framework encompassing enterprise law, tax law, customs law, foreign investment law, and telecommunication law, among others, to foster a secure environment for economic activities in the Lao market Despite these advancements, the current legal and policy system exhibits several inadequacies and lacks synchronization and unity, which can hinder the effective provision of telecommunication services and other economic operations.
In Laos, state agencies such as the National Agency for Post and Telecommunications (NAPT), the National Agency for Science and Technology (NAST), the Ministry of Culture and Information (MIC), and the Ministry of Communications, Postal, Transport and Construction (MCTPC) are responsible for formulating telecommunications and information technology policies The Department of Post and Telecommunications, a key unit within MCTPC, oversees the management and implementation of long-term development strategies, as well as the issuance of licenses and regulations in the telecommunications sector.
The National Authority for Post and Telecommunications (NAPT), established by Decree 375/PM on January 22, 2007, is tasked with formulating policies for telecommunications, postal regulation, and information technology, as well as planning the long-term development of the telecommunications sector Meanwhile, the National Authority for Science and Technology (NAST) focuses on information technology policies and oversees Internet service providers, Internet cafes, and information centers in Laos Additionally, the Ministry of Culture and Information (MIC) is responsible for developing policies and regulations concerning culture, media, and Internet services However, the management responsibilities among NAPT, NAST, and MIC are not clearly defined, leading to overlaps in their authority regarding the licensing of Internet service providers.
Customs procedures in Laos lack clarity, and tax collection frequently deviates from established rates The development of trade law and the commercial court system is progressing slowly and lacks transparency Foreign investors often face unfavorable outcomes in trade disputes, and investment procedures are cumbersome, with approval timelines not aligning with legal standards Lao Holdings N.V and its subsidiary, Sanum Investment, are notably impacted by these challenges.
Limited has filed an application with the International Center for the Settlement of Investment Disputes, a branch of the World Bank, to address legal disputes concerning Sanum Investment's direct investments in Laos, which exceed $85 million Sanum claims that the Lao government's policies have negatively impacted their investments, posing a risk of losing assets valued at up to $400 million, including significant operating licenses and franchises Consequently, Lao Holdings N.V has incurred losses of $1.8 million each month.
In February 2018, the Lao Government implemented Order No 2 to enhance business coordination regulations, aiming to boost Laos' ranking in the World Bank's Ease of Doing Business index This initiative has significantly expedited the business establishment process, reducing the time required for license applications and company seal registrations from 174 days to under 40 days Despite these improvements, tax administration remains a major obstacle for small and medium-sized enterprises in Laos, as highlighted in various surveys As of 2019, the World Bank ranked Laos 154th out of 190 economies for ease of doing business.
The Lao government is addressing challenges by implementing revised laws that foster a more favorable investment climate These reforms include land incentives and reductions in corporate income tax, all designed to build investor trust and ensure a level playing field for businesses.
Vietnam and Laos share a deep-rooted friendship, strengthened by their commitment to mutual support throughout history, particularly during struggles against imperial aggression and in national defense Both nations prioritize their special relationship, collaborating in various sectors to navigate challenges together and advancing towards socialist development and renovation.
Vietnam and Laos have signed trade agreements aimed at enhancing mutually beneficial economic relations, with a goal to increase bilateral trade by 10 to 15 percent in 2021, potentially reaching $1 billion Vietnam is Laos' third largest trading partner and a key investor, with 413 projects and a total registered capital of $4.22 billion, reflecting a 35% increase since 2010 The two countries continue to expand preferential import and export tax mechanisms, resulting in a significant boost in investment projects, which saw a 130% rise in capital in 2020 compared to 2019 These projects not only promote economic efficiency and profitability but also contribute to job creation and social welfare in both nations, supporting Laos in its poverty eradication efforts Despite facing capital challenges, Vietnam has provided substantial development aid to Laos, totaling VND 3,250 billion from 2016 to 2021, prioritizing human resource development.
Laos has emerged as one of the fastest-growing economies in ASEAN, achieving an impressive growth rate of approximately 7% annually from 2009 to 2017 With a low inflation rate ranging from 1.3% to 2% per year, the country has created a favorable investment climate through simple mechanisms, expanded bank credit for agriculture and small businesses, and the development of special economic zones These factors have successfully attracted foreign investors and bolstered economic development According to a World Bank report, Laos' total GDP reached $18.17 billion, with a growth rate of 4.7% in 2019.
The Lao economy faces significant challenges, including underdeveloped infrastructure and low labor productivity and quality Its economic growth heavily relies on sectors such as mining, electricity, foreign direct investment (FDI), and foreign aid While the road system is basic but improving, telecommunications still face restrictions Currently, 83% of the population has access to electricity However, the country is grappling with ongoing current account deficits, declining foreign currency reserves, and increasing public debt.
International companies are establishing special economic zones in Vientiane, Savannakhet, Champassak, and other provinces in Laos These zones provide various incentives and tax exemptions tailored to different industries, while the Lao Government is committed to enhancing the business environment The country's appeal to international investors is bolstered by its affordable electricity, low labor costs, strategic location within the growing Mekong Subregion, and ongoing improvements in transportation infrastructure.
Micro-environment analysis – Porter’s 5 Forces Model
2.2.1 Overview of the telecommunications industry in Laos
2.2.1.1 Laos' telecommunications network and infrastructure
Over the past 25 years, Laos has significantly improved its road traffic infrastructure, with a domestic road system spanning approximately 31.2 km, facilitating access for both locals and international visitors to key destinations within the country and neighboring regions This development has been supported by ODA aid and loans from foreign nations and international financial institutions The road network connects the north-south routes to southern China and Myanmar, as well as Cambodia, while east-west routes link Vietnam and Thailand The integration of Laos into the Greater Mekong Subregion (GMS) through its road system has played a crucial role in enhancing the nation’s socio-economic development and international presence.
Despite significant advancements over the years, the transportation, electricity, and water infrastructure in many regions of Laos, particularly in rural and mountainous areas, remains inadequate and fails to satisfy the essential living and production needs of the population.
The Lao government, with support from the World Bank and other nations, is developing modern telecommunications infrastructure under the 1999 Flagship Plan, aided by the International Telecommunications Organization (ITU) Following the installation of Fujitsu FETEX 150 switches in 1994, Laos achieved a 55% digital national switching system Additionally, equipment from Shanghai Bell has been deployed in various provincial centers, further enhancing the country's telecommunications capabilities.
1994, 1995, the transmission axis was built between Vientiane and LuangPrabang in the north, Paksane and Thakhek in the central and Savanakhet and Pakse in the south.
In 2008, Plessey Asia Pacific Pty Ltd was contracted to expand the micro- transmission network, phase 1 was completed between 20 09, phase 2 was completed in year 2010.
Thailand's Shin Satellite has established a Thaicom satellite-powered backbone system for Lao Telecom, linking Vientiane to five key provinces: Luang Prabang, Savanakhet, Bokeo, Xiengkhuang, and Champasack Despite this development, the service has yet to be officially launched.
In November2008, Thailand's TTI company was contracted to upgrade the micro- triple axis from Vientiane to the southern regions of the country under a $5 million project.
Launched in 1994, the German-funded rural telecommunications project concluded its third phase in late 2010, with an investment of approximately 2.7 million USD This initiative successfully delivered services across 30 districts, reflecting the German government's commitment to enhancing rural connectivity.
$4.9 million cost for phase 4 and phase 4 that has begun to be underway Phase 4 is the final part of a $17 million project from German aid to Laos' telecommunications industry.
In 2011, StarTelecom partnered with Viettel Vietnam and Viettel Cambodia to establish the Vietnam-Laos-Cambodia axis network This network, utilizing Dense Wavelength Division Multiplexing (DWDM) technology, boasts a total capacity of 400Gb/s and connects multiple border crossings The initiative aims to enhance economic development and improve connectivity for the local communities in Laos and the surrounding regions.
In 1987, the international switchboard was established in Vientiane with Australian assistance, facilitating micro-triple connections to Thailand and relying on satellite channels for all traffic to and from Laos Initially, much of this communication was routed through Australia's Telstra network, but after 1996, various providers began to handle the traffic A significant development in the international market was the rise of VoIP services, leading Lao Telecom and ETL to introduce prepaid VoIP cards in 2002, despite the fact that most VoIP traffic remained illegal at that time.
Laos, with support from Germany, is part of the China-Singapore Cable (CSC) project, which features a fiber optic cable stretching from Shanghai to Singapore through Vietnam, Laos, Thailand, and Malaysia The project is represented by ETL and boasts a design capacity of 2.5 Gb/s, utilizing Synchronous Digital Hierarchy (SDH) technology This cable facilitates traffic transfer among East and Southeast Asian nations, adhering to the Droit de Passage principle (DDP) and connecting to other major cable systems.
Laos has made significant improvements to its network and telecommunications infrastructure, yet it remains underdeveloped and lacks the necessary balance to support a modern and dynamic telecommunications market.
2.2.1.2 The demand of the Lao telecommunications market
Laos, with a population exceeding 7 million, presents a significant demand for instant food, cereals, plastics, sanitary porcelain, and particularly telecommunications services However, the telecommunications sector in Laos is still in its infancy compared to other ASEAN countries, with low consumption primarily concentrated in major cities This limited growth can be attributed to several factors, including the relatively low educational levels, limited population size, and the low purchasing power of the Lao people Additionally, the country faces a shortage of experts in the field, and the few educational institutions offering specialized courses in information and communication technology often do not meet international standards.
Since 2008, the entry of foreign joint venture providers has significantly boosted access to telecommunication services, including the Internet and telephone, in Laos As the economy grows rapidly, the demand for these services continues to rise, prompting suppliers to adopt new technologies to meet the evolving needs of the population.
Laos entered the telecommunications market relatively late, with competition beginning in 2002 and experiencing rapid growth thereafter By 2003, foreign investment spurred significant development, leading to a sevenfold increase in subscribers within two years As of June 2012, Laos had established 51,000 kilometers of fiber optic cables and 6,780 mobile phone base stations, providing coverage to 138 districts across 17 provinces, including 3G access to 2,000 villages According to a 2020 report by We Are Social and Hootsuite, 79% of the Lao population uses mobile phones, with internet access at 43%, and Facebook usage at 43% among internet users The country's internet speed has averaged 25.54 Mbps, with a yearly increase of 68% in broadband connection speed Between 2019 and 2020, mobile device users grew by 1.3%, internet users by 6.5%, and social media engagement by 12%, reflecting a thriving telecommunications landscape amid a 1.5% population growth rate.
Supplier Delivery time Service provided
Lao Telecom Co Ltd (LTC) 1994 Mobile, Internet
Enterprise of Telecom Lao (ETL) 2002 Mobile, Internet
Star Telecom Co Ltd (Unitel) (51% thị phần) 2009 Mobile, Internet
Milicom Lao Co Ltd (Tango, Tigo, Beeline) 2003 Mobile, Internet
Sky Tel & Net Co Ltd 2006 Internet (Wimax)
Planet Co Ltd 2000 Internet (Wimax)
Lanexang Internet Co Ltd 2001 Internet (Wimax)
2.2.3 Barriers to entry into the industry
In February 2018, the Lao Government issued Order No 2 aimed at enhancing business coordination regulations to improve Laos' ranking in the World Bank's Ease of Doing Business index This initiative significantly expedited the business establishment process, reducing the time required for license applications and company seal registrations from 174 days to under 40 days Despite these improvements, tax administration remains a major barrier for small and medium-sized enterprises in Laos, contributing to the country's low ranking of 154th out of 190 economies in 2019.
The Lao government has simplified its tariff structure and is gradually revising earliest countries to ratify the WTO's Trade Facilitation Agreement.
Laos' import tax system is designed to encourage the import of essential materials for investment and production, while simultaneously safeguarding domestic industries and restricting luxury imports Foreign investments benefit from exemptions on import duties for machinery and equipment essential for production Additionally, in specific economic zones, inputs are tariff-free if the final products are exported from Laos Special provisions may also apply to raw materials and intermediate goods used in alternative industries.
Lao PDR's tariffs are aligned with the ASEAN Harmonized Tariff List (AHTN 2012) and adhere to standard ASEAN import tariff rates, which range from 0% to 40% These rates apply specifically to imports from non-ASEAN countries and are regulated by the Customs Department.
SWOT analysis
The SWOT model, which stands for strengths, weaknesses, opportunities, and threats, serves as a valuable tool for analyzing business strategy and evaluating the risks and direction of a company or project.
We use the SWOT model to help UNITEL with business planning, strategy development, competitor evaluation:
+ Long term development and well reputation.
+ Limitations in human resources management, especially in foreign
+ Operating in over 13 countries around the world, provides services to 72 million customers.
+ High corporate social responsibility. countries.
+ Owned-state company with military manner and inflexible working environment.
+ Lao's government promotes telecommunication services in this market.
+ Relationship between Vietnam and Laos
+ Limited telecommunication services in this country.
VIETTEL'S INTERNATIONAL BUSINESS STRATEGY AND
Viettel's global standardization strategy
In 2006, Viettel Group expanded its operations internationally by establishing Viettel Global, aiming to tap into new potential markets This strategic move was driven by the vision of positioning Viettel as a formidable telecommunications leader on the global stage.
After 9 years of development, Viettel Global is one of the biggest Vietnamese overseas investors It is now operating 9 telecommunications companies in 9 countries across Asia, Africa, and Asia with total population of over 175 million and 13 million customers Its total revenue for 2014 was US$1.2 billion.
Viettel adopts a sustainable investment strategy that prioritizes the needs of corporations, governments, communities, and customers alike Our commitment to developing robust network infrastructure ensures that our services reach every village, making them accessible to all individuals, regardless of their location or income level Leveraging our extensive experience in the telecom sector and the strong financial backing of Viettel Group, we are able to implement cutting-edge technology and offer a diverse range of services.
Viettel Global demonstrates its capabilities through the remarkable achievements of its subsidiaries, which hold leading positions in their respective national telecom markets in terms of subscribers, revenue, and infrastructure Notable examples include Metfone in Cambodia, Telemor in Timor-Leste, and Movitel in Mozambique.
By the end of 2017, Viettel served nearly 40 million international customers through its mobile services, broadband Internet, landlines, and wireless phones As of June 2018, the company reported profits in eight markets, with Laos, Cambodia, and Timor-Leste successfully returning initial capital investments Currently, Viettel Global's profits in these three countries are four to five times higher than the original investments Notably, Viettel holds the largest market share in five countries: Cambodia, Laos, Timor-Leste, Mozambique, and Burundi.
Viettel Global has experienced significant and consistent growth in its telecommunications services revenue from international markets, with an impressive annual growth rate of 21.5% in 2016—more than double the rate of 2015 This upward trend continued into 2017, where the growth rate increased to 24%.
In 2017, foreign market customers represented 13% for Viettel, significantly exceeding the global average of approximately 3% Notable growth was observed in African markets, with Viettel Tanzania experiencing a remarkable 1,343% increase, followed by 43% in both Viettel Cameroon and Viettel Burundi Additionally, in Myanmar, Mytel achieved over 2 million subscribers within just over a month of its launch on June 9, 2018, surpassing Viettel Global's ambitious target of 2 to 3 million subscribers for the entire year.
2018), contributing to Viettel’s business achievements on foreign markets.
3.1.1 Selecting target markets and target groups of customers
Before entering the international market, Viettel Global conducted thorough research on the telecommunications landscape worldwide In 2015, data revealed over 7 billion mobile cellular subscriptions globally, a significant increase from less than one billion in 2000, reflecting an annual growth rate exceeding 14% (ITU, 2015) At that time, the global average of mobile subscriptions per 100 inhabitants was 46.1, compared to 81.3 in developed countries, while the Asia-Pacific region and Africa had lower figures of 42.3 and 17.4, respectively (ITU, 2015).
Between 2015 and 2019, the global mobile subscriptions are projected to rise by 1.3 billion, increasing from 7.2 billion to 8.5 billion, which represents an annual growth rate of 4.2% The fastest-growing markets during this period are expected to be in emerging regions of Africa and Central and South Asia, with Africa leading the way at an impressive annual growth rate of 7.4%, highlighting its potential as a significant market.
Forecasted annual growth rates of mobile subscriptions in the world and by region, (2015-2019)
The World West Europe East of Europe North America Latin America&Caribbean
Middle East Middle&South Asia
When Viettel Global selects a target country, the primary consideration is the potential of the telecommunications service business, alongside the political, cultural, and social environment, as these factors significantly influence the development of the telecommunications market.
The analysis considered the competitive landscape, evaluating potential rivals, threats from substitute products, and pressures from customers and suppliers Additionally, the impact of environmental factors on inputs, outputs, and the speed of implementation was also assessed.
South Asia, along with Laos, Cambodia, Timor-Leste, and Myanmar, presents significant market potential with minimal entry barriers These countries benefit from shared cultural, social, and natural environments, and their mobile cellular subscription density remains lower than the regional average and that of the Philippines.
Vietnam More importantly, the annual growth rates of subscriptions in these countries were very high.
Table 2 Mobile cellular subscriptions per 100 inhabitants
Average annual growth rate (%) ASEAN
3.1.2 Market penetration and investment strategies
In early 2018, Viettel Global expanded its international presence by establishing 10 subsidiaries and joint ventures across various foreign markets Among these, 4 subsidiaries and branches received direct investment from Viettel Global, while the remaining ventures were formed in collaboration with significant local enterprises, in which Viettel Global holds over 40% of the charter capital.
Table 3 Viettel Global’s subsidiaries, their brands, and methods of investment in 10 countries
Country Enterprise Brand Method of investment
Cambodia Viettel (Cambodia) Pte., Ltd Metfon e
Laos Star Telecom Co., Ltd Unitel Joint venture
Timor-Leste Viettel Timor Leste
Direct investment into Viettel branch
Cameroon Viettel Cameroun Nexttel Joint venture
Burundi Viettel Burundi S.A Lumitel Direct investment
Tanzania Viettel Tanzania Ltd Halotel Halotel Joint venture
Movitel, SA Movitel Joint venture
Peru Viettel Peru SAC Bitel Direct investment
Haiti Natcom SA Natcom Joint venture
Viettel's entry into the Laos telecom industry
Viettel Global has formed a joint venture with Laos Asia Telecom Company, resulting in the establishment of Star Telecom, which operates under the Unitel telecommunications brand Viettel Global holds a 49 percent stake in this venture, contributing capital through the provision of equipment.
+ Company name: Star Telecom Co, Ltd.
+ Address: Nongbone road, Phonxay village, Saysettha district, Vientiane Capital, Lao P.D.R.
+ Website: www.unitel.com.la
"Uni," derived from "United," signifies solidarity, a core value cherished by the Laotian people Unitel was established as a telecom network to enhance connectivity among Laotians and improve their quality of life.
+ Services providing: Mobile, Internet, fixed broadband
Unitel is the leading mobile operator in Laos accounting for 47% market share with 1.8 million customers, owning the biggest telecom network in terms of:
Network infrastructure with more than 21,000 km fiber optical cable and 3,100 base stations (2G and 3G).
Distribution channels with 143 shops, 174 agents and sales points, 400 salespeople.
Customer care system with 200 agents/shift at the same time.
International Awards achieved: Best Operator in Emerging Market by World Communications Awards (2012).
Star Telecom created 3,500 km of fiber-optic transmission network for 17 cities throughout the nation in less than a year, which is joined by Viettel Vietnam and Viettel
Cambodia is set to establish a Vietnam-Laos-Cambodia Central transmission line, enhancing regional connectivity In July 2012, Star Telecom completed an extensive fiber-optic network spanning 17,000 km with 2,500 transmitters, effectively serving 95 percent of Laos' population This initiative mirrors Cambodia's commitment to investing in high-quality, systematic technology infrastructure, aimed at improving communication services and accessibility for its citizens.
3.2.2 Viettel Global selected a joint venture to enter the Lao telecoms market
Entry modes are crucial for organizations aiming to engage in international trade, as they significantly influence profitability and success These modes establish the objectives, goals, resources, and policies that guide international business operations Ultimately, they are designed to help organizations achieve sustainable growth in global markets.
The main three entry modes to international markets will include:
When considering entry into a foreign market, organizations must carefully evaluate the factors that influence their chosen entry modes These key issues play a crucial role in determining the most effective strategy for market entry.
Viettel's decision to enter the Laotian market is influenced by several key factors, with a joint venture being the most suitable market entry strategy This approach is primarily supported by the potential for government assistance, which can facilitate smoother operations and enhance collaboration in the new market.
Viettel Global holds a competitive advantage in the Lao market due to strong government support and economic cooperation between Vietnam and Laos As a state-owned enterprise, Viettel benefits from this backing, particularly in the telecommunications sector, facilitating its entry into the new market.
Opening a joint venture with the Lao government's telecom business might be a huge chance for Viettel to compete with other current market competitors. b Lower the expenses
Viettel can enhance the quality of telecom services in suburban areas by leveraging its existing infrastructure, which allows for modifications with minimal expenditure This approach not only reduces the costs associated with upgrades and innovations but also aligns with the cultural needs of the market.
Viettel has effectively adopted a global joint venture model in five countries, emphasizing the importance of localizing its brand to align with regional languages and cultures This strategic approach to market entry not only fosters strong partnerships but also enhances the potential for mutual success among stakeholders with shared objectives.
Internationalization is a key business strategy for companies seeking to expand their operations globally, offering significant benefits such as increased market share, sales, and profits However, this strategy also presents challenges that require companies to develop strategic plans to navigate effectively Viettel Telecom Corporation exemplifies successful internationalization, having expanded its market presence in over 13 countries across Asia, Africa, and America, and establishing itself as one of the largest telecommunications providers in Southeast Asia In each market, Viettel introduces a unique brand name through joint ventures, delivering high-quality telecom services to local communities.
In the context of global economic expansion, Viettel should consider entering the Laos market, identified as a prime opportunity through comprehensive market analysis using frameworks like PESTLE, SWOT, and Five Forces Models Key factors supporting this choice include favorable government support, the current socio-economic landscape, strong Vietnam-Laos relations, and the underdeveloped telecommunications sector in Laos Following market selection, Viettel should adopt a joint venture as its entry strategy, a proven business model that has successfully been implemented in five other countries This ownership model offers significant advantages, making it an ideal approach for Viettel's entry into the Laotian market.