FINAL PROJECT VIETTELS INTERNATIONAL BUSINESS STRATEGY IN LAOS MARKET

THE UNIVERSITY OF DANANG VIETNAM – KOREA UNIVERSITY OF INFORMATION AND COMMUNICATION TECHNOLOGY Faculty of Digital Economy and E – Commerce FINAL PROJECT VIETTEL'S INTERNATIONAL BUSINESS STRATEGY IN LAOS MARKET Course: International Business Student : Le Thi Thuy An 20BA253 Nguyen Dac Nam 20BA024 Pham Thi Suong Mai 20BA021 Vo Thi Thu Thao 20BA044 Le Phuoc Thinh 20BA046 Le Van Thong 20BA048 Class : 20GBA Instructor : Vo Thi Thanh Thao, Ph D Danang, May 2022 THE UNIVERSITY OF DANANG VIETNAM – KOREA UNIVERSITY OF INFORMATION AND COMMUNICATION TECHNOLOGY Faculty of Digital Economy and E – Commerce FINAL PROJECT VIETTEL’S INTERNATIONAL BUSINESS STRATEGY IN LAOS MARKET Danang, May 2022 ACKNOWLEDGEMENT In fact, there is no success that is not tied to the support and help, whether more or less, directly or indirectly from others During the period from the beginning of the study, the "International Business" course, our group received a lot of attention and help from Vo Thi Thanh Thao, Ph.D With the deepest gratitude, our team would like to send to Dr Vo Thi Thanh Thao, at the Faculty of Digital Economy and E-Commerce, Vietnam-Korea University of Information and Communication Technology, for her knowledge and their enthusiasm to impart valuable knowledge to us from the beginning to the end of the course, dedicatedly guiding us through each class session as well as the talks and discuss international business strategy Without her guidance and teachings, this exercise of ours would be very difficult to complete Once again, we thank you! The topic was carried out in a short time, with little exposure to the outside environment, no practical experience, and limited knowledge, so it is inevitable that errors in the research process can be avoided We would like to receive your valuable comments for further improvement of our research TABLE OF CONTENTS CHAPTER 1: OVERVIEW OF THE VIETTEL MILITARY TELECOMMUNICATION GROUP 1.1 General overview of Viettel 1.2 Business activities 1.3 Goals and Missions 1.3.1 Goals 1.3.2 Missions 1.4 Milestones of Viettel Global CHAPTER 2: ANALYSIS OF VIETTEL'S BUSINESS ENVIRONMENT IN LAOS 2.1 Macro-environmental analysis – Pestel Model 2.1.1 Political and legal environment 2.1.2 Economic environment 2.1.3 Socio-cultural environment 13 2.1.4 Technology environment .14 2.2 Micro-environment analysis – Porter’s Forces Model 15 2.2.1 Overview of the telecommunications industry in Laos 15 2.2.2 Competitors 18 2.2.3 Barriers to entry into the industry 19 2.2.4 Consumer bargaining power 20 2.2.5 The bargaining power of the supplier 20 2.2.6 Threat of substitute products 21 2.3 SWOT analysis 21 CHAPTER 3: VIETTEL'S INTERNATIONAL BUSINESS STRATEGY AND ENTRY INTO THE LAOS MARKET .22 3.1 Viettel's global standardization strategy 22 3.1.1 Selecting target markets and target groups of customers .24 3.1.2 Market penetration and investment strategies 26 3.2 Viettel's entry into the Laos telecom industry 27 3.2.1 Company Information 27 3.2.2 Viettel Global selected a joint venture to enter the Lao telecoms market .28 CONCLUSION 31 REFERENCE .32 CHAPTER 1: OVERVIEW OF THE VIETTEL MILITARY TELECOMMUNICATION GROUP 1.1 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 1.2 Business activities  Main lines of business: providing telecommunications, mobile, Internet-TV services, digital applications, information technology, postal, communication, and delivery  Related business lines: material trade, distribution, retail, equipment, information goods, information technology, communication Finance, banking, and real estate Training and supplying human resources to support the Group's local and international manufacturing and commercial operations 1.3 Goals and Missions 1.3.1 Goals The goal is progress, the driving force is reform, and the foundation is humanity, peace, and unity These are three interconnected factors But the most important aspect remains unity Solidarity at Viettel must be defined as every Viettel individual, every division in Viettel thinking and acting in the highest consensus, putting the interests and future of the whole business first 1.3.2 Missions With the objective of “Creation for People”, Viettel treats each consumer as an individual who must be appreciated, cared for, listened to, understood, and treated independently The cornerstone of a successful company is social Viettel is also devoted to reinvesting in society by integrating manufacturing and economic operations with social activities, including initiatives for health care, education, and poverty assistance Viettel's dedication to customers, partners, investors, society, and ourselves is reflected in all of the company's actions These ideals serve as the foundation for Viettel's efforts to create an innovative company for people 1.4 Milestones of Viettel Global 2007 Viettel Global Investment JSC was established according to the Business Registration Certificate no 0102409426 issued on October 24, 2007 by the Department of Planning and Investment of Hanoi city The initial share capital was 960 billion VND 2008 1/2008: Viettel Global received the investment project in Cambodia from Viettel Group 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 2009 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 2010 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 2011 9/2011: official launch and started business operation of telecommunications services in Haiti 2012 5/2012: Official launch and started telecommunications services provision in the Mozambique 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 2013 3/2013: Official launch of mobile services in East Timor 8/2013: Viettel Global’s Extra-Ordinary Shareholders Meeting made decision on 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 2014 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 CHAPTER 2: ANALYSIS OF VIETTEL'S BUSINESS ENVIRONMENT IN LAOS 2.1 Macro-environmental analysis – Pestel Model 2.1.1 Political and legal environment 2.1.1.1 Political institutions 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 is small, has little budget and insufficient resources; Their mission focused on border and domestic security, mainly against Hmong rebel groups and other opposition Together with the Lao People's Revolutionary Party and the government, the Lao People's Army is the third pillar of the state apparatus and is expected to prevent political and civil unrest or similar emergencies There is no external threat to Laos, and the Lao People's Army maintains strong ties with Vietnam The political environment and social order and safety throughout Laos have been considered stable for many years This is evident in the view of the most important policy of the Party and the State of Laos This political stability has always been considered as the most favorable and attractive opportunity for investment and production and business activities for Vietnam But Laos as well as other socialist states, Laos also followed the path to socialism, which from this point has greatly affected the psychology of investors from the socialist countries 2.1.1.2 Legal system Enterprises investing in Laos are currently difficult to anticipate the difficulties and risks especially when the legal system related to investment in Laos is in the process of being revised and completed, so there are many changes, inconsistencies, lack of transparency and difficulty to access, leading to regrettable obstacles in the process of implementing projects in Laos Currently, the Lao state has developed and promulgated the legal system with enterprise law, tax law, customs law, foreign investment law, telecommunication law, documents under the law of the government, ministry of commerce, other competent state agencies The above legal system has created a safe environment and legal corridor for economic activities taking place in the Lao market, including the provision of telecommunication services However, the legal and policy system of Laos currently has many inadequacies and is not synchronized and unified In the field of telecommunications, state agencies in Laos are responsible for promulgating policies and regulations related to the field of telecommunications and information technology, including National Agency for Post and Telecommunications (NAPT), National Agency for Science and Technology (NAST) and Ministry of Culture and Information (MIC), Ministry of Communications, Postal, Transport and Construction (MCTPC) The Department of Post and Telecommunications is a functional unit in MCTPC that has the task of managing and operating long-term development policies and strategies; issuance of licenses and regulations related to post and telecommunications NAPT was established by Decree 375/PM of January 22, 2007 NAPT is responsible for policymaking in the field of telecommunications, postal regulation, telecommunications and information technology and developing strategies for the planning of the long-term development of the telecommunications industry NAST establishes policies on information technology and manages Internet service providers, Internet cafes and information centers in Laos The Ministry of Culture and Information (MIC) is responsible for promulgating policies and regulations related to culture, media, information, and issues related to Internet services The division of management responsibilities of the above agencies is not uniform and transparent so there is still a overlap of responsibilities between NAPT, NAST and MIC in issuing licenses to Internet service providers Customs procedures are unclear, and the collection of taxes is often not in line with the set tax rates Trade law and the commercial court system in Laos are growing slowly and not transparently Trade disputes are rarely adjudicated in favor of foreign investors Cumbersome investment procedures and approval periods are not in accordance with the law Lao Holdings N.V and its subsidiary Sanum Investment telephone increased significantly Along with the rapid growth of the economy, Laos' demand for telecommunications services tends to increase rapidly, requiring suppliers to adopt new technologies to satisfy the needs of the people 2.2.2 Competitors Among Indochinese countries, Laos entered the telecommunications market relatively late, the competition has only begun since2002 with a limited number of operators However, the growth rate in the Lao telecommunications market is very rapid From the beginning of 2003, due to the participation and investment capital of foreign operators, the Lao telecommunications market began to develop, the number of subscribers increased times in just two years by the end of June 2012, the total length of fiber optic telecommunications cables in Laos had reached 51 thousand kilometers There are 6780 mobile phone base stations, covering 138 districts in 17 provinces and cities throughout Laos, of which 3G networks have covered2,000 villages In 2020, according to a global digital overview report released by We Are Social and Hootsuite,79% of the Lao population now uses mobile phones and internet access rates reach 43% Facebook, in particular, accounts for 43%, which means that everyone who accesses the internet in the country uses social networks In addition, with the development of telecommunications infrastructure, Laos' internet speed reached an average of 25.54 Mbps and recorded a 68% increase in broadband internet connection speed per year In the context of an average population growth rate of 1.5%, the number of mobile device users in the country also recorded an increase of 1.3% in the period 2019-2020 and the number of internet users increased by 6.5%, the number of people active on social networks increased by 12% in the same period Table Unitel's competitors 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 (Wimax 18 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 on improving business coordination regulations and mechanisms in the Lao PDR, with the expectation of improving Laos' position in the World Bank's Business Ease ranking As a result, the process of establishing a business is faster due to the simplification of the procedures for applying for licenses and registering company seals from 174 days to less than 40 days Tax administration has always been considered one of the biggest barriers to trade in Laos in surveys for small and medium-sized enterprises The World Bank ranked Laos 154th out of 190 economies in 2019 in terms of ease The Lao government has simplified its tariff structure and is gradually revising non-tariff barriers Laos, which placed a top priority on trade facilitation, was one of the earliest countries to ratify the WTO's Trade Facilitation Agreement Laos' import tax system aims to promote the import of input materials for investment and production, while protecting domestic production and limiting luxury imports A foreign investment item does not have to pay import duty on the import of machinery and equipment for production Moreover, in some special economic zone’s inputs not require tariffs as long as the final product is exported from Laos Raw materials and imported intermediate goods for imported alternative industries may be treated specially as prescribed Lao PDR's tariffs are based on the ASEAN Harmonized Tariff List (AHTN 2012), subject to standard ASEAN import tariff rates ranging from to 40%, excluding nonASEAN countries These taxes are regulated by the Customs Department The excise tax rate ranges from 5-90% for many items The Lao government has phased out sales tax over the past few years and replaced it with a Value-Added Tax (VAT) regime, although VAT is still applied inconsistently Additional information about 19 taxes can be referenced at the Tax Department, Ministry of Finance 2.2.4 Consumer bargaining power Laos, with a population of about million people, is a market with high demand for quick meals, cereals, plastic items, sanitary wares, and, in particular, telecommunications-related services However, in comparison to other ASEAN nations, Laos' telecommunications industry is still in its early stages, with usage being low and concentrated mostly in major cities Because of the low level of education and the small population, the Lao people's buying power and income are low Furthermore, Laos lacks expertise in this subject; there are relatively few colleges in Laos that provide specialized degrees in information and communication technology, and the majority of schools not satisfy international standards With the introduction of joint venture providers with other nations beginning in 2008, the proportion of individuals with access to telecommunications services such as the Internet and telephone expanded considerably Along with the fast expansion of the economy, Laos' demand for telecommunications services tends to rise quickly, necessitating the use of new technology by providers to meet the people's requirements 2.2.5 The bargaining power of the supplier In addition to traditional multinational telecommunication equipment suppliers, more and more manufacturers, providing of new telecommunication equipment to offer equipment sales with many policies such as incentives, discounts, late payments So, currently the bargaining capacity of suppliers is weak if companies also benefit in negotiating and selecting their suppliers Alternative products and services are products and services that can satisfy the same needs as domestic products and services The telecommunications industry is open so in the near future there will be alternative products that will help customers increasingly satisfy their needs: Communication "encroaches" on telecommunications plans to access the Internet via cable television network (with the advantage of broadband) With the development of technology, telecommunications-information and communication technology enterprises began to become direct competitors of each other Internet access via tv cable network 20 can reach download speed of 54Mbps and upload to 10Mbps At the same time, through this transmission system, in addition to television and the Internet, customers can also access many other entertainment services such as online gaming, watching tv on a computer, tv on demand 2.2.6 Threat of substitute products Telecommunication services is distinctive Therefore, there are no substitute products 2.3 SWOT analysis The SWOT model is derived from the four letters strengths, weaknesses, opportunities, and threats, and it provides a tool to help analyze strategy and review and assess the risks and orientation of a company or a business project We use the SWOT model to help UNITEL with business planning, strategy development, competitor evaluation: STRENGTH (S) + Long term development WEAKNESS (W) and well + reputation Limitations management, in human especially in resources foreign + High quality services countries + Stable development + Owned-state company with military + Operating in over 13 countries around the manner and inflexible working world, provides services to 72 million environment customers + High corporate social responsibility OPPORTUNITY (O) + Lao's government THREAT (T) promotes + Unstable economy telecommunication services in this market + Relationship between Vietnam and Laos + Limited telecommunication services in this country 21 CHAPTER 3: VIETTEL'S INTERNATIONAL BUSINESS STRATEGY AND ENTRY INTO THE LAOS MARKET 3.1 Viettel's global standardization strategy In 2006, Viettel Group decided to extend its business to overseas looking for more potential markets Viettel Global was established October 2006 with a vision and responsibility of turning Viettel into a strong telecommunications group on international stage After years of development, Viettel Global is one of the biggest Vietnamese overseas investors It is now operating telecommunications companies in 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 embrace a sustainable investment strategy that balances the benefits of corporate, governments, the people, and customers We invest in strong network infrastructure covering nationwide and widespread supplying chain to every village so that our services are accessible to all people in those countries regardless of their locations and income conditions Besides, thanks to the long-term experience from operating telecom business in Vietnam and firm financial foundation of Viettel Group, we can master and apply the latest technology and diversify our services Viettel Global is proving its competences through the success of its subsidiaries when most of them taking the leading positions in their national telecom markets in term of subscribers/ revenue/ infrastructure, for instance, Metfone in Cambodia, Telemor in Timor-Leste or Movitel in Mozambique 22 By the end of 2017, nearly 40 million customers from international markets used Viettel’s mobile services, broadband Internet, landlines, and wireless phones As mentioned earlier, as of June 2018, Viettel attained profit in markets, of which markets including Laos, Cambodia and Timor-Leste has returned the initial Capital investments To date, Viettel Global is generating profits of four-to-five times higher than the initial investments in these three markets (Thanh Thu, 2018) Encouragingly, Viettel was the top telecommunications provider in terms of market share in five countries, including Cambodia, Laos, Timor-Leste, Mozambique, and Burundi (Viettel Global, 2017) Viettel Global’s revenue from telecommunication services on foreign markets has grown rapidly and continuously The annual growth rate was 21.5% in 2016, which was more than double that of 2015, and increased by 2.5% at 24% in 2017 (Viettel Global, 2017) The number of customers in foreign markets was 13% in 2017, which was four times higher than that of the global average (about 3%) New African markets continue to see strong growth rates at 1,343% for Viettel Tanzania, 43% for Viettel Cameroon 43% and 42% for Viettel Burundi (Minh Anh, 2018) In Myanmar - the newly penetrated market, Mytel (also known as Telecom International Myanmar Co) had more than million subscribers just in over a month after the official launch on June 9, 2018, surpassing Viettel Global’s target of to million subscribers in the whole 2018 (Tu An, 2018), contributing to Viettel’s business achievements on foreign markets 23 3.1.1 Selecting target markets and target groups of customers Prior to the decision to invest in and penetrate into the international market, Viettel Global had conducted intensive research on the potential and development of telecommunication market in different regions o f the world The data compiled in 2015 on mobile-broadband telecom services, one of Viettel Global’s strengths, showed that there were over billion mobile cellular subscriptions worldwide, up from less than one billion in 2000 (ITU, 2015) Correspondingly, the annual growth rate was over 14% Also as of 2015, the number of mobile cellular subscriptions per 100 inhabitants worldwide was 46.1 while that of developed countries was 81.3 Whereas, these figures for the AsiaPacific region and Africa were only 42.3 and 17.4, respectively (ITU, 2015) According to Viettel Global (2015), the number of mobile subscriptions in the world between 2015 and 2019 is forecasted to increase by 1.3 billion (from 7.2 billion by the end of 2015 to 8.5 billion by the end of 2019), equivalent to an annual growth rate of 4.2% In this period, the 20 fastest-growing markets are predicted to be emerging markets in Africa and the Central and South Asia With the highest growth rate of 7.4% annually, Africa is considered a high potential market Forecasted annual growth rates of mobile subscriptions in the world and by region, (2015-2019) Africa 7.40% Middle&South Asia 5.10% Middle East 4.30% Southeast Asia&Oceania 3.90% Latin America&Caribbean 3.10% North America 3.00% East of Europe West Europe The World 1.90% 0.90% 4.20% Source: Viettel Global (2015) The first factor that Viettel Global considered when selecting a target country was the potential of telecommunication Service business and its political, cultural and social 24 environment They can have different impacts on the telecommunication market development Subsequently, the competitive environment, potential competitors, threats from substitute Products or pressures from customers and suppliers and so on were weighed up In addition, the natural environment factor that has an impact on input, output and the speed of implementation was also taken into account In South Asia, Laos, Cambodia, Timor-Leste, and Myanmar are the markets with high potential and low barrier to entry In addition to the advantage of similarities in the cultural, social, and natural environment, the density of mobile cellular subscriptions of these countries is low compared to the regional average and those of the Philippines and Vietnam More importantly, the annual growth rates of subscriptions in these countries were very high Table Mobile cellular subscriptions per 100 inhabitants Country 2005 2010 2015 Average annual growth rate (%) ASEAN Cambodia 8.0 57.0 134.4 32.6 Laos 11.4 64.1 55.9 17.2 Timor Leste 3.2 42.6 110.9 42.6 Myanmar 0.3 1.2 78.2 74.4 Vietnam 11.4 126.1 128.6 27.4 Philippines 40.3 88.7 115.8 11.1 AFRICA Cameroon 12.9 43.2 79.5 19.9 Burundi 2.1 19.1 49 37.0 Mozambique 7.2 29.9 71.9 25.9 25 Tanzania 7.5 45.5 73.6 25.7 3.1.2 Market penetration and investment strategies In early 2018, Viettel Global established 10 subsidiaries and joint ventures in 10 foreign markets, of which subsidiaries and branches were directly invested by Viettel Global The others were joint ventures between Viettel Global (holding more than 40% of charter Capital) and major local enterprises Table Viettel Global’s subsidiaries, their brands, and methods of investment in 10 countries Country Enterprise Brand Method of investment Cambodia Viettel (Cambodia) Pte., Ltd Metfone Direct investment Laos Star Telecom Co., Ltd Unitel Timor-Leste Viettel Timor Leste Telemor Direct investment into Viettel Unipessoal Lda Myanmar Telecom International Joint venture branch Mytel Joint venture (49%) Myanmar Co Cameroon Viettel Cameroun Nexttel Joint venture Burundi Viettel Burundi S.A Lumitel Direct investment Tanzania Viettel Tanzania Ltd Halotel Halotel Joint venture Mozambique Movitel, SA Movitel Joint venture Peru Viettel Peru SAC Bitel Direct investment Haiti Natcom SA Natcom Joint venture 26 3.2 Viettel's entry into the Laos telecom industry Viettel Global selects a joint venture in Laos It established a joint venture with Laos Asia Telecom Company, namely, Star Telecom, to create the Unitel telecommunications brand, with Viettel Global contributing 49 percent of the capital investment in the form of equipment 3.2.1 Company Information + Company name: Star Telecom Co, Ltd + Address: Nongbone road, Phonxay village, Saysettha district, Vientiane Capital, Lao P.D.R + Website: www.unitel.com.la + Brand name: Unitel “Uni” is extracted from the word “United” – which has similar meaning to solidarity This is a social value highly respected by Laotian people Unitel is created as a telecom network to connect the Laotian and bring them a better life + Established: 2007 + Service launching: November 2009 + Employees: 1.540 staffs + Services providing: Mobile, Internet, fixed broadband 27 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 to establish a Vietnam-Laos-Cambodia Central transmission line Star Telecom completed the greatest fiber-optic transmission network of 17,000 km and 2,500 transmitters in July 2012, covering all districts and being utilized by 95 percent of Laos' population It was a similar approach to Cambodia's of investing in high-quality, systemized technology infrastructure to deliver the greatest services for local citizens by making communications services more accessible 3.2.2 Viettel Global selected a joint venture to enter the Lao telecoms market The entry modes always play an important role for any organization that wants to enter international trade and workplace They are very important in determining the profitability and success of an organization or a business entity It sets the objectives, goals, resources, and policies that always guides the operations international business It aims at ensuring that an organization attains sustainable growth in the global markets 28 The main three entry modes to international markets will include: The factors that influence the entry modes are the key issues that an organization has to check before it involves itself in selecting the way its going to enter the foreign market Based on the models, certain factors are suggested for Viettel's choice to choose a market entrance option in Laos The most appropriate market entrance strategy for Viettel should be joint venture for various reasons: a Government assistance Viettel Global has a significant edge in the Lao market because to governmental backing and economic collaboration between Vietnam and Laos Viettel is a state-owned enterprise With government backing, notably in the telecommunications sector, Viettel may find it simpler to penetrate 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 29 Because of the party's existing infrastructure, Viettel just has to engage in further modifications to deliver better quality telecom services generally to suburb regions, requiring less expenditure As a consequence, the costs of modifications and innovations may be reduced c Suit the market's culture Viettel has successfully implemented the worldwide business model of joint venture in countries across the globe With the strategy of transforming the brand name into the local language and culture, the joint venture market entrance method may be the best option, as it has a high potential of agreement from the parties that share the same goals and achieve the same success 30 CONCLUSION In conclusion, internationalization currently is a business strategy that a lot of companies around the world chooses to expand their operations Without a doubt, this strategy could bring a huge of benefits to the enterprises, extent the market share and increase sales and profit However, it also brings challenges and obstacles, required the companies to have strategic plans to overcome Viettel Telecom Corporation has also gained a lot of success in internationalization The company expands its market share in over 13 countries in Asia, Africa and America areas, becomes one of the largest telecommunication providers in Southeast Asian area In each country, Viettel provides a new brand name of joint venture, provides high quality telecom services to local citizens In the potential context of global economy, Viettel can consider opening a new market into global The most suitable selected market is Laos Based on analysis of market analysis (both macro-environment and micro-environment) using theoretical frameworks such as PESTLE analysis, SWOT and Five Forces Models, a lot of reasonable characteristics that makes the company to choose Laos, for example, the supports from host country's government, the current situation of society and economy of the host country, the convenience in relationship between Vietnam and Laos, the current poor quality of telecommunication industry in the host country market, etc After choices of market selection, the company should focus on choosing market entry mode for the most suitable internationalization strategy The chosen market entry mode is joint venture which is a successful business model that Viettel has been operating in countries around the world With the huge advantages from joint venture ownership model, it could be the most suitable one for Viettel to enter Laos market 31 REFERENCE [1] Lê Như Quỳnh (2013), “Thị trường viễn thông Lào: Cơ hội thách thức cho doanh nghiệp Việt Nam”, Luận văn Thạc sĩ Kinh tế đối ngoại, Trường Đại học Kinh tế, Đại học Quốc gia Hà Nội [2] Nguyễn Văn Du, Nguyễn Thị Thúy (2022), “Nhân kỷ niệm 67 năm Ngày thành lập Đảng Nhân dân Cách mạng Lào (22/03/1955 – 22/03/ 2022): Quan hệ đặc biệt Việt Nam – Lào”, chuyên mục Quốc tế, Tạp chí Nghiên cứu, Hướng dẫn cơng tác tổ chức xây dựng Đảng Ban tổ chức trung ương, truy cập tại: http://www.xaydungdang.org.vn/Home/quoc-te/2022/16606/Quan-he-dac-biet-Viet-NamLao.aspx [2] Trung tâm Xúc tiến Thương mại Đầu tư (ITPC) (2021), “Thị trường nước ASEAN: Thị trường Lào” [3] Trịnh Thị Tâm (2021), “Bản tin kinh tế số tháng 1/2021: Tình hình kinh tế Lào”, Trang Ngoại giao Kinh tế trực tuyến, Bộ Ngoại Giao Việt Nam, truy cập tại: https://ngkt.mofa.gov.vn/forums/lao/ban-tin-kinh-te-so-thang-01-2021-%E2%80%8B/ [4] Trần Xuân Sơn, Lê Duy Toàn (2021), “Triển vọng phát triển kinh tế Lào năm 2021”, Tin tức giới, Báo nhân dân, truy cập tại: https://nhandan.vn/tin-tuc-the-gioi/trien-vong-phat-trien-kinh-te-lao-trong-nam-2021644072/ 32 ... operations international business It aims at ensuring that an organization attains sustainable growth in the global markets 28 The main three entry modes to international markets will include:... in sales and 1.7 billion USD in profit in 2021, making it one of the most profitable firms in Vietnam 1.2 Business activities  Main lines of business: providing telecommunications, mobile, Internet-TV... integration In the process of international integration in economy and science and technology, Laos is facing difficulties in transforming and building new institutions of economy, trade, finance, banking,