FINAL PROJECT VIETTEL''''S INTERNATIONAL BUSINESS STRATEGY IN LAOS MARKET

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 article highlights the interconnected business sectors of material trade, distribution, retail, equipment, information goods, information technology, communication, finance, banking, and real estate It emphasizes the importance of training and supplying human resources to bolster the Group's manufacturing and commercial operations both locally and internationally.

Goals and Missions

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

Viettel's international business strategy in the Laos market focuses on leveraging its extensive telecommunications experience to enhance connectivity and digital services The company aims to meet the growing demand for mobile and internet services in Laos, positioning itself as a key player in the region By investing in infrastructure and local partnerships, Viettel seeks to provide innovative solutions that cater to the needs of Laotian consumers and businesses This strategic approach not only strengthens Viettel's market presence but also contributes to the overall development of the telecommunications sector in Laos.

Viettel's international business strategy in the Laos market emphasizes unity and solidarity among its employees and divisions Each individual at Viettel is encouraged to think and act with a shared consensus, prioritizing the collective interests and future of the entire organization.

Missions

Viettel's mission of "Creation for People" emphasizes the importance of valuing each consumer as a unique individual, deserving of appreciation, care, and understanding The company believes that social responsibility is fundamental to its success, actively reinvesting in society through initiatives that integrate its economic activities with efforts in healthcare, education, and poverty alleviation.

Viettel demonstrates a strong commitment to its customers, partners, investors, society, and its own team, which is evident in every action the company takes This dedication is the cornerstone of Viettel's mission to foster innovation and build a company that truly serves the needs of the people.

Milestones of Viettel Global

Viettel Global Investment JSC, established on October 24, 2007, under Business Registration Certificate no 0102409426 by the Hanoi Department of Planning and Investment, commenced its operations 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.

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services and enhancing connectivity The company aims to leverage its technological expertise to meet the growing demand for mobile and internet services in Laos By investing in infrastructure and local partnerships, Viettel seeks to establish a strong market presence and improve customer satisfaction This strategic approach not only positions Viettel as a key player in the region but also contributes to the overall development of Laos's digital economy.

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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

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services and enhancing digital connectivity The company aims to leverage its technological expertise to meet the growing demand for mobile and internet services in Laos By investing in infrastructure and local partnerships, Viettel seeks to establish a strong market presence and contribute to the country's economic development Additionally, the strategy emphasizes customer-centric approaches and innovative service offerings to attract and retain users in a competitive landscape Overall, Viettel's commitment to the Laos market reflects its broader vision of becoming a leading telecommunications provider in Southeast Asia.

ANALYSIS OF VIETTEL'S BUSINESS ENVIRONMENT IN LAOS

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, although small and underfunded, plays a crucial role in maintaining border and domestic security, primarily addressing threats from Hmong rebel groups and other opposition factions As a key component of the state apparatus alongside the Lao People's Revolutionary Party and the government, its mission includes preventing political and civil unrest With no significant external threats facing Laos, the Lao People's Army also fosters strong relationships with Vietnam to bolster regional stability.

Laos has maintained a stable political environment and social order for many years, making it an attractive destination for investment and business activities, particularly for Vietnam This stability aligns with the key policies of the Lao Party and State, fostering a favorable climate for production However, like other socialist nations, Laos's commitment to socialism influences the perceptions and psychology of investors from socialist countries.

Investing in Laos presents significant challenges for enterprises due to the ongoing revisions and updates to the legal system governing investments This evolving landscape has resulted in numerous changes, inconsistencies, and a lack of transparency, making it difficult for businesses to navigate the regulatory environment Consequently, these obstacles can hinder the successful implementation of projects in Laos.

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services to meet local demand The company aims to leverage its technological expertise and competitive pricing to capture a significant market share By investing in infrastructure and enhancing service quality, Viettel seeks to establish itself as a leading provider in the region Furthermore, strategic partnerships and localized marketing efforts are essential components of its approach to effectively engage with Laotian consumers Overall, Viettel's commitment to innovation and customer satisfaction positions it for long-term success in the Laos market.

The Lao government has established a comprehensive legal framework, including enterprise, tax, customs, foreign investment, and telecommunication laws, aimed at fostering a secure environment for economic activities in the Lao market Despite these advancements, the current legal and policy system in Laos exhibits significant inadequacies and lacks synchronization and unity.

In Laos, state agencies such as the National Agency for Post and Telecommunications (NAPT), National Agency for Science and Technology (NAST), and the Ministry of Culture and Information (MIC), along with the Ministry of Communications, Postal, Transport and Construction (MCTPC), are responsible for establishing telecommunications and information technology policies and regulations 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 pertinent to the telecommunications sector.

Established by Decree 375/PM on January 22, 2007, the National Authority for Posts and Telecommunications (NAPT) oversees policymaking in telecommunications, postal regulation, and information technology, while also developing long-term strategies for the telecommunications sector The National Authority for Science and Technology (NAST) focuses on information technology policies and regulates Internet service providers, Internet cafes, and information centers in Laos Additionally, the Ministry of Culture and Information (MIC) is tasked with creating policies related to culture, media, and internet services However, the management responsibilities among NAPT, NAST, and MIC are not clearly defined, leading to overlapping duties in licensing Internet service providers.

Customs procedures in Laos lack clarity, leading to tax collections that frequently deviate from established rates The development of trade law and the commercial court system is slow and lacks transparency, with foreign investors rarely winning trade disputes Additionally, investment procedures are cumbersome, and approval timelines do not align with legal standards Lao Holdings N.V and its subsidiary, Sanum Investment, face these challenges in the Lao market.

Viettel's international business strategy in the Laos market focuses on expanding telecommunications services and enhancing digital connectivity The company aims to leverage its technological expertise to meet the growing demand for mobile and internet services in Laos By investing in infrastructure and local partnerships, Viettel seeks to establish a strong market presence and improve customer experiences The strategy also emphasizes competitive pricing and innovative solutions tailored to the needs of Laotian consumers, positioning Viettel as a key player in the region's telecommunications landscape.

Limited has filed an application with the International Center for the Settlement of Investment Disputes, part 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 jeopardized these investments, risking losses of up to $400 million, alongside operating licenses and franchises valued at hundreds of millions Consequently, Lao Holdings N.V has been incurring losses of $1.8 million each month.

In February 2018, the Lao Government implemented Order No 2 to enhance business coordination regulations, aiming 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 for license applications and company seal registrations from 174 days to under 40 days Despite these improvements, tax administration remains a significant obstacle for small and medium-sized enterprises in Laos As of 2019, the World Bank ranked Laos 154th out of 190 economies regarding ease of doing business.

The Lao government is addressing various challenges by implementing revised laws that foster investor trust These initiatives include land incentives, reductions in corporate income tax, and the establishment of a fair competitive environment, all aimed at creating more favorable conditions for investment.

Vietnam and Laos share a deep-rooted friendship, forged through a shared history of resistance against imperial aggression and a commitment to national defense and development The leadership of both nations emphasizes the importance of their traditional relationship, fostering mutual support across various sectors Together, they navigate challenges and collaborate on the path toward socialist renovation and development.

Trade agreements have been established to enhance economic relations between the two countries, focusing on mutually beneficial equality and honoring the traditions of cooperation and international trade.

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services to meet the growing demand for connectivity The company aims to leverage its technological expertise and competitive pricing to capture a significant market share By investing in infrastructure and local partnerships, Viettel seeks to enhance service quality and customer satisfaction Additionally, the strategy includes targeted marketing efforts to build brand awareness and foster customer loyalty Through these initiatives, Viettel is positioned to establish a strong presence in Laos and contribute to the country's digital transformation.

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 system, expanding its domestic road network to approximately 31.2 km This development has enhanced accessibility for both locals and international visitors to key locations within the country and to neighboring nations Funded by ODA aid and loans from foreign and international financial institutions, the road system facilitates vital connections, linking southern Laos with southern China and Myanmar, as well as connecting Vietnam to Thailand and Myanmar These advancements in the road infrastructure not only bolster Laos' socio-economic growth but also elevate its standing within the Greater Mekong Subregion (GMS).

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services and enhancing connectivity The company aims to leverage its technological expertise to meet the growing demand for digital services in Laos By investing in infrastructure and local partnerships, Viettel seeks to strengthen its market presence and provide innovative solutions tailored to the needs of Laotian consumers This strategic approach not only aims to increase market share but also to contribute to the socio-economic development of Laos through improved communication services.

Despite significant advancements over the years, the transport, electricity, and water systems in many regions of Laos, particularly in rural and mountainous areas, remain inadequate and fail to meet the essential living and production needs of the local 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) The installation of Fujitsu FETEX 150 switches in 1994 at key locations enabled Laos's national switching system to achieve 55% digitalization Additionally, equipment from Shanghai Bell has been implemented 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 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.

The German-funded rural telecommunications project, initiated in 1994, completed its third phase by the end of 2010, with an investment of approximately 2.7 million USD This phase successfully delivered telecommunications services across 30 districts, showcasing 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, in collaboration with Viettel Vietnam and Viettel Cambodia, successfully completed the construction of the Vietnam-Laos-Cambodia axis network This network utilizes wavelength optical channeling (DWDM) technology, boasting a significant total capacity.

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services to meet the growing demand for connectivity By leveraging its technological expertise and competitive pricing, Viettel aims to capture a significant market share while enhancing customer satisfaction The company prioritizes building strong local partnerships and adapting its offerings to align with the unique needs of Laotian consumers Additionally, Viettel emphasizes sustainable practices and corporate social responsibility, contributing to the socio-economic development of Laos Through these strategic initiatives, Viettel is positioned to strengthen its brand presence and drive long-term growth in the region.

400Gb/s connected to many border crossings to facilitate economic development and for people in the region including Laos.

In 1987, the international switchboard in Vientiane was established with Australian aid, facilitating communication between Laos and Thailand through a micro-triple connection For an extended period, all traffic to and from Laos relied on satellite channels, primarily utilizing Australia's Telstra network Following 1996, additional providers began handling this traffic, marking a significant shift in the international market with the rise of VoIP services.

In year 2002, both Lao Telecom and ETL began offering prepaid VoIP cards even though the majority of VoIP traffic was illegal and illegal.

Laos, with support from Germany, is participating in the China-Singapore Cable (CSC) project, which features a fiber optic cable running 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) while connecting to other major cable systems.

Laos has made significant strides in enhancing its network and telecommunications infrastructure; however, 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 market for instant food, cereals, plastics, sanitary porcelain, and particularly telecommunications services However, its telecommunications sector is still in the early stages of development compared to other ASEAN countries, with low consumption primarily confined to major cities Factors such as limited purchasing power, low income levels, and a lack of expertise in the field contribute to this situation Additionally, there are very few educational institutions offering specialized courses in information and communication technology, and most do not meet international standards.

Starting from 2008, with the emergence of foreign joint venture providers, the proportion of people with access to telecommunication services such as the Internet and

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services to meet the growing demand for connectivity By leveraging its technological expertise and competitive pricing, Viettel aims to capture a significant market share while enhancing the digital landscape in Laos The company's strategic investments and partnerships are designed to foster sustainable growth and improve customer experience, positioning Viettel as a leading player in the region's telecommunications sector.

Viettel's international business strategy in the Laos market has seen a significant increase in telephone usage, driven by the country's rapid economic growth This surge in demand for telecommunications services necessitates that providers adopt innovative technologies to meet the evolving needs of the population.

Laos, one of the Indochinese countries, entered the telecommunications market later than its neighbors, with competition commencing in 2002 among a limited number of operators Despite this late entry, the growth rate of the telecommunications sector in Laos has been remarkably rapid.

SWOT analysis

The SWOT model, which stands for strengths, weaknesses, opportunities, and threats, serves as a strategic analysis tool that helps businesses evaluate their risks and direction effectively.

We use the SWOT model to help UNITEL with business planning, strategy development, competitor evaluation:

+ Long term development and well reputation.

+ Operating in over 13 countries around the world, provides services to 72 million customers.

+ Limitations in human resources management, especially in foreign 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 in the Laos market focuses on expanding its telecommunications services and enhancing digital connectivity The company aims to leverage its technological expertise to meet the growing demand for mobile and internet services in Laos By investing in infrastructure and local partnerships, Viettel seeks to establish a strong market presence and improve customer experience Additionally, the strategy emphasizes competitive pricing and innovative service offerings to attract a diverse customer base Overall, Viettel's approach is designed to drive growth and contribute to the digital transformation of Laos.

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 transforming Viettel into 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 harmonizes the interests of corporations, governments, communities, and customers Our commitment includes developing robust network infrastructure and an extensive supply chain that ensures our services reach every village, making them accessible to all individuals regardless of location or income With years of experience in the telecom sector in Vietnam and the solid financial backing of Viettel Group, we leverage cutting-edge technology to diversify our service offerings effectively.

Viettel Global showcases its strengths through the success of its subsidiaries, which dominate 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, all of which have established leading positions.

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services to meet the growing demand for connectivity The company aims to leverage its expertise and resources to enhance infrastructure and provide innovative solutions tailored to local needs By fostering partnerships and investing in technology, Viettel seeks to strengthen its market presence and contribute to the digital transformation in Laos Additionally, the strategy emphasizes customer satisfaction and competitive pricing to attract a diverse user base, ultimately positioning Viettel as a leading telecommunications provider in the region.

By the end of 2017, Viettel's mobile services reached nearly 40 million international customers, encompassing broadband Internet, landlines, and wireless phones As of June 2018, the company reported profits in eight markets, with Laos, Cambodia, and Timor-Leste successfully recouping their initial investments Currently, Viettel Global's profits in these three markets are four to five times 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 revenue from its telecommunication services in international markets In 2016, the annual growth rate reached 21.5%, more than doubling the rate from 2015, and further increased to 24% in 2017.

In 2017, the customer base in foreign markets reached 13%, significantly surpassing the global average of approximately 3% Notable growth was observed in new African markets, with Viettel Tanzania experiencing an astounding 1,343% growth, while Viettel Cameroon and Viettel Burundi saw increases of 43% and 42%, respectively Additionally, in Myanmar, Mytel (Telecom International Myanmar Co) quickly gained over 2 million subscribers within just a month of its official launch on June 9, 2018, exceeding Viettel Global’s initial target of 2 to 3 million subscribers for the entire year.

2018), contributing to Viettel’s business achievements on foreign markets.

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services to enhance connectivity and promote digital transformation By leveraging competitive pricing and innovative technology, Viettel aims to capture a significant market share while fostering local partnerships The company emphasizes customer satisfaction and community engagement, which are crucial for building brand loyalty in the region Through strategic investments and a commitment to sustainable development, Viettel seeks to establish itself as a leading player in Laos' telecommunications sector.

3.1.1 Selecting target markets and target groups of customers

Before venturing into the international market, Viettel Global conducted extensive research on the global telecommunications landscape In 2015, data revealed over 7 billion mobile cellular subscriptions worldwide, a significant increase from under one billion in 2000, reflecting an annual growth rate exceeding 14% 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 lagged behind at 42.3 and 17.4, respectively.

Between 2015 and 2019, global mobile subscriptions are expected to rise by 1.3 billion, increasing from 7.2 billion to 8.5 billion, which translates to an annual growth rate of 4.2% Emerging markets in Africa and Central and South Asia are predicted to be the fastest-growing, with Africa leading 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 Southeast Asia&Oceania

Middle East Middle&South Asia

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

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services and enhancing digital connectivity The company aims to leverage its technological expertise to provide innovative solutions tailored to local consumer needs By investing in infrastructure and fostering partnerships with local businesses, Viettel seeks to strengthen its market presence and drive economic growth in Laos Additionally, the company is committed to promoting digital transformation and improving access to communication services, ultimately contributing to the region's socio-economic development.

Viettel's international business strategy in the Laos market focuses on adapting to the unique telecommunications environment, which influences market development By understanding local dynamics and consumer needs, Viettel aims to enhance its competitive edge and drive growth in the region This strategic approach not only supports the expansion of telecom services but also fosters economic development in Laos.

The analysis considered various factors, including the competitive landscape, potential rivals, threats from substitute products, and pressures from customers and suppliers Additionally, the impact of the natural environment on inputs, outputs, and the speed of implementation was also evaluated.

South Asia, along with Laos, Cambodia, Timor-Leste, and Myanmar, presents significant market opportunities due to their low barriers to entry These countries benefit from shared cultural, social, and natural environments, yet they have lower mobile cellular subscription densities compared to regional averages and countries like the Philippines and Vietnam Notably, the annual growth rates of mobile subscriptions in these markets are exceptionally high, highlighting their potential for expansion.

Table 2 Mobile cellular subscriptions per 100 inhabitants

Average annual growth rate (%) ASEAN

Viettel's entry into the Laos telecom industry

Viettel Global has formed a joint venture with Laos Asia Telecom Company to establish the Unitel telecommunications brand in Laos This partnership, known as Star Telecom, sees Viettel Global investing 49 percent of the capital in the form 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," embodies the value of solidarity, a principle deeply cherished by the Laotian people Unitel was established as a telecom network to enhance connectivity among Laotians and improve their quality of life.

+ Established: 2007 + Service launching: November 2009 + Employees: 1.540 staffs.

+ Services providing: Mobile, Internet, fixed broadband

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services to meet the growing demand for connectivity By leveraging innovative technology and competitive pricing, Viettel aims to enhance customer satisfaction and capture a significant market share The company's investment in infrastructure and local partnerships is crucial for its success in navigating the unique challenges of the Laos market Additionally, Viettel's commitment to corporate social responsibility strengthens its brand reputation and fosters community engagement Overall, Viettel's strategic approach positions it as a leading player in Laos' telecommunications industry.

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).

In less than a year, Star Telecom established a 3,500 km fiber-optic transmission network across 17 cities in collaboration with Viettel Vietnam and Viettel Cambodia, creating a vital Vietnam-Laos-Cambodia Central transmission line By July 2012, Star Telecom completed an extensive 17,000 km fiber-optic network with 2,500 transmitters, ensuring coverage for all districts and reaching 95 percent of Laos' population This initiative mirrors Cambodia's strategy of investing in high-quality, systematic technology infrastructure to enhance communication services and improve accessibility for local citizens.

3.2.2 Viettel Global selected a joint venture to enter the Lao telecoms market

Entry modes are crucial for organizations seeking to engage in international trade, significantly influencing their profitability and success They establish the objectives, goals, resources, and policies that guide international business operations Ultimately, these modes aim to ensure sustainable growth for organizations in global markets.

Viettel's international business strategy in the Laos market focuses on expanding telecommunications services and enhancing digital connectivity By leveraging its technological expertise, Viettel aims to meet the growing demand for reliable communication solutions in Laos The company's strategic investments and partnerships are designed to foster economic growth and improve customer experiences Additionally, Viettel is committed to adapting its services to local market needs, ensuring sustainable development and competitive advantage in the region.

The main three entry modes to international markets will include:

Organizations must carefully evaluate the factors influencing entry modes before deciding how to enter foreign markets.

Viettel's decision to enter the Laos market is influenced by several key factors, with a joint venture being the most suitable market entry strategy This approach is particularly advantageous due to the potential for government assistance, which can facilitate smoother operations and enhance business prospects in the region.

Viettel Global holds a strong competitive advantage in the Lao market due to substantial government support and the economic partnership between Vietnam and Laos As a state-owned enterprise, Viettel benefits from this backing, particularly in the telecommunications sector, which facilitates its entry and expansion 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's international business strategy in the Laos market focuses on expanding its telecommunications services and enhancing connectivity The company aims to leverage its technological expertise to meet the growing demand for digital services in Laos By investing in infrastructure and local partnerships, Viettel seeks to establish a strong market presence and improve customer experience Additionally, the strategy emphasizes sustainable growth and corporate social responsibility, aligning with Laos' development goals Through these initiatives, Viettel is positioned to become a leading player in the Southeast Asian telecommunications sector.

Viettel can enhance its telecom services in suburban areas by leveraging its existing infrastructure, which allows for cost-effective modifications and innovations This approach not only improves service quality but also minimizes expenditure, making it easier to adapt to the local market culture.

Viettel has effectively adopted a global joint venture business model in five countries By localizing its brand name and aligning with local cultures, this approach enhances the likelihood of mutual agreement among partners, fostering shared goals and collective success.

Viettel's international business strategy in the Laos market focuses on expanding its telecommunications services and enhancing digital connectivity By leveraging its expertise in technology and infrastructure, Viettel aims to capture a significant market share and cater to the growing demand for mobile and internet services in Laos The company emphasizes strategic partnerships and local collaborations to navigate regulatory challenges and adapt to local consumer preferences Additionally, Viettel's commitment to corporate social responsibility positions it as a trusted brand, fostering customer loyalty and community engagement in the region.

Internationalization is a key business strategy for companies seeking to expand operations globally, offering significant benefits such as increased market share, sales, and profits However, it also presents challenges that require strategic planning to navigate Viettel Telecom Corporation exemplifies successful internationalization, having established a presence in over 13 countries across Asia, Africa, and America, and becoming one of Southeast Asia's largest telecommunications providers In each market, Viettel operates under a unique joint venture brand, delivering high-quality telecom services to local customers.

In the context of the global economy, Viettel is considering expanding into new markets, with Laos identified as the most suitable option A thorough market analysis utilizing PESTLE, SWOT, and Five Forces Models reveals several compelling factors for this choice, including strong government support, favorable socio-economic conditions, and established diplomatic relations between Vietnam and Laos Additionally, the underdeveloped telecommunications sector in Laos presents significant opportunities for growth Following market selection, Viettel should adopt a joint venture as its market entry strategy, a model that has proven successful in five other countries This approach leverages the advantages of shared ownership, making it an ideal strategy for Viettel's entry into the Laotian market.

Tiêu đề	Viettel's International Business Strategy In Laos Market
Tác giả	Le Thi Thuy An, Nguyen Dac Nam, Pham Thi Suong Mai, Vo Thi Thu Thao, Le Phuoc Thinh, Le Van Thong
Người hướng dẫn	Vo Thi Thanh Thao, Ph. D
Trường học	The University of Danang Vietnam – Korea University of Information and Communication Technology
Chuyên ngành	International Business
Thể loại	Final Project
Năm xuất bản	2022
Thành phố	Danang

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