Phát triển kinh doanh dịch vụ viễn thông ở việt nam trong bối cảnh hội nhập quốc tế nghiên cứu trường hợp công ty cổ phần viễn thông hà nội tt tiếng anh

INTRODUCTION
1. Necessity of the thesis
Recently, in the process of increasing international economic integration,
countries in Southeast Asia in particular and Asia in general have become
more and more prominent in the world economy. The strong process of
international economic integration has brought new opportunities for
economic development in developing countries through creating
opportunities for these countries to access a wider private market. materials,
product consumption and labor market, strengthening the ability to mobilize
finance and other resources for the development of important economic
sectors such as industry, agriculture and services. In order to contribute to
the success of countries including Vietnam, the Telecommunications
industry plays a very important role. Since joining the WTO, the
telecommunication industry has been attracting many foreign investors, in
fact, it has achieved high growth but still has many limitations such as high
service prices and quality. is not good, the infrastructure is not
synchronized, the imbalance between rural and urban areas, is not rich in
service as well as customer care is still not professional, etc ... Starting from
urgent practical requirements As mentioned above, the PhD student chooses
the topic "Development of telecommunication services business in Vietnam
in the context of international integration: Case study of Hanoi Telecom
Joint Stock Company" to carry out the dissertation his economic doctor.
2. Objectives
The thesis focuses on the following main objectives:

System of basic theories related to enhancing the competitiveness
of telecommunications services in general and telecommunications services
business in particular. In particular, the thesis will study the competitiveness of
telecommunication service business, factors affecting the competitiveness of
telecommunications service business;


Analyze and point out the weaknesses and limitations of the
previous research results related to the competitiveness of the
telecommunication service business to identify shortcomings and outstanding
issues in the industry. dealing in telecommunication services in Vietnam, issues
that have not been solved in previous studies;

Analyzing and assessing the competitive situation of the
telecommunications service business in Vietnam in the past to determine the
strengths, weaknesses, advantages and difficulties in the business of
1


telecommunications services. in Viet Nam. Thereby, analyzing the
competitiveness of the current telecommunication service business.

Propose recommendations, orientations and solutions to improve
the competitiveness of the telecommunication service business in Vietnam.
3. Objects and scope of the research
Object:
The object of the study is the development of Vietnam's
telecommunications services in the context of international integration, a
separate case study of Hanoi Telecom. However, due to the close relationship
between the development of telecommunication services business and
economic development, the thesis also studies the aspects and conditions of
business development of telecommunications services associated with the
development of telecommunications services. economic development in
Vietnam.
Scope:
The project focused on researching, analyzing the situation, the context of
international integration and mobile telecommunications products and services of

Hanoi Telecommunications Joint Stock Company from 2010 to 2017, from
which proposed solutions. solutions to improve the development of
telecommunications services in Vietnam from 2018 to year to 2025 and vision to
2035. The domestic telecommunication service enterprises mentioned in this
thesis are Enterprises without 100% foreign capital are established in Vietnam,
doing business in domestic and international markets. The foreign telecom
service enterprises mentioned in this thesis are those with large market
capitalization and listed on the NASDAQ stock market.
4. Scientific and practical significance of the thesis
4.1. Scientific significance
The thesis contributes to clarifying the definitions of telecommunications
services, business of telecommunications services, types of telecommunications
services, and modes of business of telecommunications services.
The thesis enriches the theory of telecommunications service business,
business development of telecommunications services, enhances the ability of
business development of telecommunications services associated with
Vietnam's economic development in the context of international economic
integration.
Applying the competitive theory of 5Ps by Michael Porter to analyze and
evaluate the development ability of the company.

2


Apply the SWOT model to analyze the strengths, weaknesses,
competitive advantages and limitations of telecommunication service business
in Vietnam in general and Hanoi Telecom in particular.
Use development capability analysis models to assess the current situation
of development, operation and business development capability of
telecommunication service enterprises; Theories about business development

strategy serve as a basis for practical application of business development
activities of telecommunication enterprises in Vietnam.
Overview and assessment of the process of economic integration and the
impact of economic integration on telecommunications service business
development and the role of telecommunications services in the process of
economic development in the context of integration.
4.2. Practical significance
The thesis has assessed the current situation of telecommunication service
development, analyzed the strengths, weaknesses and causes of success and
limitations in the development of telecommunication service business in
Vietnam.
The dissertation provides experiences and lessons from foreign
telecommunication service providers to enhance the business of
telecommunications services in Vietnam in general and Hanoi Telecom in
particular.
The thesis analyzes and points out opportunities and challenges for
telecommunication service business in Vietnam. This is very important in
making strategies and proposing solutions for business development of
telecommunications services.
The thesis has proposed solutions to improve and develop
telecommunication services in Vietnam in the context of international
integration.
Contributing to improving the development ability of Vietnamese
telecommunications enterprises in general in order to improve economic
efficiency, contributing to the development process of Hanoi City
Telecommunications in particular and Vietnam in general.
5. Research method
In the research process, the dissertation used methods of analysis,
statistics, comparison, synthesis of telecommunication industry and company
data to assess the company's development ability. In order to better assess

development efficiency, competitiveness, opportunities and potential for
development as well as orientations for telecommunications service
development, the thesis also uses practical case studies. Telecommunications
industry development in Vietnam. Currently, there are many
telecommunications developers in Vietnam market, including traditional
3


corporations such as Mobiphone, Vinaphone, EVN, Saigon Telecommunication
Joint Stock Company, Viettle and Gtel Mobile Global Telecommunications
Company. . The thesis has studied, analyzed the general situation, the
orientations to bring success of the companies to propose for Vietnam
telecommunications in general. Results analyze the impact factors, success and
limitations, their causes
6. New contributions of the thesis
 Overview and clarify the theoretical issues, theory of business services
in general and the quality of telecommunications service business in particular,
the development efficiency and the development ability of telecommunication
service business. in the context of international integration.
 Build the development effectiveness and development ability of
telecommunication services business in the context of international economic
integration
7. Structure of the thesis:
The main content of the thesis consists of 4 chapters:
Chapter 1: Overview of research works related to the thesis topic
Chapter 2: Some theoretical issues about telecommunication service
business in the context of international integration
Chapter 3: Current situation of Vietnam telecommunications service
business - case study of Hanoi Telecom Joint Stock Company (Hanoi Telecom)
Chapter 4: Some solutions to develop telecommunication service business

in Vietnam in the context of international integration
CHAPTER 1: OVERVIEW OF RESEARCH WORKS RELATED
TO THE THESIS TOPIC
1.1. Overview of research both in Vietnam and in other
countries
1.1.1. Studies related to theories on telecommunications and competition in
telecommunications
- The issues of competitive theory, development orientation, marketing
orientation, strategic management of Porters, assessment of resource-based
development capabilities for telecommunication service providers have been
studied. Research in Kamiru's doctoral thesis (2015). The content of the thesis
is the influence of marketing strategies to create competitive advantage among
mobile service providers in Kenya.
- Avila (2017) studied the diffusion and competitive relationship of
mobile services in Guatemala.
- Regarding cooperation and micro strategies in the field of providing
telecommunication services, telecommunication platforms, telecommunication
4


ecosystems, telecommunication service business strategies, Karhu et al (2014)
have an analysis of competition and cooperation differences among
telecommunication ecosystems using strategic networks.
- Regarding application services, telecom network operators, application
stores and telecommunications industry, author Wang and Chang (2016)
presented the model and analysis for telecommunication application services.
information and views of telecom network operators.
- Examine the competitive relationships that exist in the telecom market
using the appropriate theory of personal satisfaction and system satisfaction
aspects that are mentioned in the study. by Lee, YC (2011).

1.1.2. Studies on the current situation of domestic and
foreign telecommunications markets
- Vietnam ICT White Book 2017
- Assessment of the competition of HAP distribution in mobile services in
developing countries by Research Institute of Orange firm - French telecommunications
giant published by co-research by Reynaud and Gourhant (2011).
- Another case study in Korea in the field of telecommunications services
of Kang et al. (2017) discusses mobile services, government policies and
competitive market in the field of mobile services. in Korea.
- An example of the current overview of mobile phones in India is
presented by Gupta and Jain (2016).
- Article by Lin and Bautista (2016) researching and investigating the
development of mobile advertising in Singapore by considering the views of
stakeholders and creating resources in social technology systems. such as value
chains, government regulations, etc.
1.2. General assessment of the research situation on telecommunication service
business in previous studies
The above-mentioned studies only approach to the telecommunication
service product and business strategy from a more theoretical point of view
without an in-depth study on the telecommunication service product and
business strategy. at a specific unit.
The research works in Vietnam are mainly limited to understanding the
business development of telecommunication services of enterprises in general,
but there has not been any research project that deeply analyzes the activities of
enterprises. a specific business. Meanwhile, foreign research works have
selected only a few specific types of telecommunications services such as new
mobile technology, GSM - CDMA competition, HAP distribution competition
in mobile services in Vietnam. developing countries, applications in mobile
5

telecommunications services, etc. to analyze.
CHAPTER 2: SOME THEORETICAL ISSUES ABOUT
TELECOMMUNICATION SERVICE BUSINESS IN THE CONTEXT OF
INTERNATIONAL INTEGRATION
2.1. Definitions
This section summarizes the concepts and six important characteristics
of telecommunications services, types of telecommunications services
including: basic services, value added services, internet connection services,
access services. Internet access and internet application services. The new
contribution of this section is the theory of international economic integration
and the impact of international economic integration on Vietnam's
telecommunications.
2.2. Classification of telecommunication services
According to Circular No. 05/2012 / TT-BTTTT, telecommunication
services are classified as follows:
Fixed telecommunication service
Land-based telecommunications service is a telecommunications service
provided via land fixed telecommunication network.
Mobile telecommunications services
Land mobile telecommunications service is a telecommunications service
provided via land mobile telecommunications network (mobile communication
network, wireless trunk network, messaging network).
2.3. Stages of development of mobile telecommunications services
The development process of Vietnam's telecommunications industry can
now be divided into four stages: the service phase (from 1987 to 1990), the
exclusive development period (from 1990 to 1995), the period of opening up to
create competition (from 1995 to 2005) and the stage of preparation for
international integration (from 2005 to now).
2.4. Modes of service delivery

There are four modes of service delivery, including cross-border service
delivery, extraterritorial consumption, commercial presence and natural presence.
2.5. Competition theory is based on the competitiveness of the
telecommunication service business in Vietnam
2.5.1. Theory of competition and industry competition
- Theory of competition: In a competitive market economy, it is
understood as the competition between enterprises in the market in order to gain
an advantage over the same product, goods and services, the same type of
customers. goods compared to competitors.
- The theory of industry competition: competition is understood and
6


generalized, that is, the fierce competition between entities operating in the
market with each other, trading the same products or products. similar to mutual
replacement in order to gain market share, increase sales and profits.
2.5.2. Application of research on the competitiveness of the
telecommunications business in Vietnam
a) Competition of Vietnam's telecommunications industry:
It is the ability to change the structure and mechanism of the
telecommunications industry to form and maintain the stable development of
the industry, enhance the quality of services provided by enterprises in the
industry, in order to better adapt. , enhance competitiveness in the market.
Therefore, Vietnam's telecommunications industry will be able to attract
investment, technology transfer and take advantage of domestic and foreign
human resources.
b) Factors affecting the competitiveness of the telecommunications
industry
Factors affecting the competitiveness of the telecommunications industry
include: the number of entities participating in the industry, revenue, the quality

of services that meet customer needs, and inter-criteria. These are related to
labor productivity and criteria related to the development of the
telecommunications industry (ICT-OI).
2.6. Telecommunication service business experience of
some countries in the world and lessons learned for
telecommunications businesses in Vietnam
2.6.1. Telecommunications business experience of some
countries in the world
a) Business experience of Chinese telecommunications enterprises
Expanding network capacity and scale of coverage: anticipating subscriber
levels, the corporation continues to expand its coverage and increase network
capacity, focus on developing fast GSM networks, continue to improve and
maximize TACS network optimization. When expanding the network, the
corporation may have to build its own transmission infrastructure in some areas
where the provincial post offices have not installed transmission equipment.
Enhancing network quality and operational functions: To enhance the
overall performance of the network, the group is developing value-added
services, including voicemail, short messages and data transmission
capabilities. advanced data that the group thinks will increase subscriber usage
and create new sources of revenue for the group.
Increasing focus on equipment and distribution to expand subscribers: The
7


Group expands its subscriber base by developing its image as a quality service
provider through the promotion of activities. stronger advertising. The Group
also develops an extensive distribution network to telecommunication retail
stores and post offices and continues to expand its own retail stores, exploiting
opportunities to diversify distribution channels.
Continuing to pay attention to after-sales service and strengthen customer

loyalty on mobile technology, network characteristics as well as their services.
The Group offers a wide range of customer services from point of sale onwards,
including customer helplines, Customer Service Centers, online support for
customers with payment questions, technology and other aspects of exploitation
and services; complete other aspects of customer service, including invoice
accuracy, convenience of payment, and the timeliness of solving network
problems to strengthen customer loyalty.
Cost control and operational efficiency enhancement: The Group focuses
on cost control, improving operational efficiency through the implementation of
advanced information management systems and international management
techniques. , and by maintaining and engaging highly qualified employees to
enhance their profitability.
Exploiting strategic investment opportunities in the telecommunications
industry in China: Given the rapid growth of China's telecommunications
industry, the group recognizes that there will be attractive opportunities for
strategic investments with other telecommunications service providers. The
group intends to take advantage of its unique position to access international
capital markets in order to exploit opportunities to win contracts on mobile
communications or telecommunications in general in China.
b) Business experience of American telecommunications businesses
AT&T
AT&T identifies the future trend as users to watch videos via smartphones.
However, AT&T is inherently a corporation that benefits primarily from
traditional development models such as paid TV channels, which are at risk
from new technology innovations. From AT & T's strategic point of view,
whatever the future of communications, the group will focus on video content.
Intel Corp
Intel has shifted from traditional telecommunications to new businesses.
Telecommunications development results show that the new telecommunication
development strategy is gradually promoting efficiency and creating a solid

foundation for development.
2.6.2. Lessons learned for telecommunications businesses in Vietnam
8


- Quickly expand coverage and increase network capacity
- Rapidly expanding distribution channels
- Improve the quality of service and customer service
- Promote customer care activities
- Flexible and scientific management organization model
- Increasing investment in research and development
CHAPTER 3: CURRENT SITUATION OF VIETNAM
TELECOMMUNICATIONS SERVICE BUSINESS - CASE STUDY OF
HANOI TELECOM JOINT STOCK COMPANY (HANOI TELECOM)
3.1. Evaluate the current situation of development of Vietnam's
telecommunications service business
a) Actual situation of contributions made by telecommunication business in
Vietnam
- Expanding the information network, enhancing domestic and foreign
exchange capacity: The post and telecommunications services help society save
time, shorten distances and bridge distances.
- Provide additional tools to manage the country, ensure communication
for national security, national defense, flood and storm prevention, and serve
important events of the country: important means and media for facilitating the
production, exchange and consumption of products and services of all other
economic sectors.
- Contribute to improving and improving the physical and spiritual life of
the people: The postal and telecommunication service is the most effective and
fastest information tool with a prompt, accurate, safe and convenient request.
convenient for all areas of social life, including politics, economics, culture,

society and national security and security, which are sensitive factors related to
socio-political, economic and military issues. and national security, are
important management tools of the political system.
- Contributing to the industrialization and modernization of the country,
creating favorable conditions for development of other economic and social
fields: The development of post and telecommunications services has the effect
of promoting the growth process. economic, social economic restructuring
towards progress, improve productivity and efficiency in rural agriculture,
industry, social services such as education and training, health care ...
improvement improve the quality of life in developing regions, encourage
community and enhance cultural identity in remote areas and remote areas, and
promote the cause of industrialization and modernization.
9


- Provide solutions to reduce development costs and increase social labor
productivity: including reducing machine downtime, reducing inventory, bringing
products to market on time, reducing transportation costs , and energy saving.
b) Overview of telecommunication service business in Vietnamese
enterprises
This section will analyze the strengths and weaknesses based on the
business situation of key telecommunications enterprises in Vietnam. Here are
seven key telecommunications businesses studied:
Table 3.1: Key companies in the field of Telecommunications in Vietnam
Company name
Ownership
Vietnam Posts and State-owned (100%)
Telecommunications
Group
VinaPhone

Vietnam
telecommunication
service
company
(100%)
Mobifone
Vietnam
telecommunication
service
company
(100%)
Viettel
Ministry of Defence
S-Fone
Joint
Venture
of
Saigon Postel and SK
Telecom
EVN Telecom
Vietnam
Electricity
Company (100%)
Hanoi Telecom
Joint Venture of Hanoi
Telecom, Hutchison
Telecommunicatons
International (HTIL)

Market share

Local telephone, inter-provincial
and international, data, internet
Mobile phone

Mobile phone

Mobile phones, local phones
Mobile phone

Local telephone, inter-provincial
and international, data, internet
Mobile phone

Source: BMI
c) Evaluating through the analysis of the telecommunications business
situation of enterprises and telecommunications market in our country
- Advantages and achievements:
+ Attracting many foreign businesses and investors: With the entry of
foreign investors into the domestic telecommunications market, the
10


telecommunication industry will increasingly develop towards modernization
due to Many large telecommunication enterprises in the world will enter the
Vietnamese market, bringing technology, financial resources, knowledge and
experience to exploit telecommunication infrastructure in Vietnam.
+ Telecommunication business has high growth rate: Although Vietnam is
a developing country, the telecommunication business in Vietnam has had a
strong growth in recent years. The telecom industry has experienced a high
growth rate with the development of mobile telecommunications and internet,

reflected by the increasing number of users and access.
+ Positive revenue structure: Revenue from telecom and internet business
increases, while revenue from mobile phone services tends to decrease, the
proportion of revenue from mobile services accounts for big weight. This shows
the positive trend of the telecommunications business market. Although mobile
phones and the internet appeared after landlines, they quickly dominated the
market due to their convenience, modern technology and low cost.
+
Increasing
labor
productivity:
Labor
productivity
of
telecommunications business in general and enterprises in particular has shown
positive results.
+ Service quality is gradually improved: Telecommunication business is
developing rapidly, although service quality has increased more slowly, it has
been gradually improved to meet the needs of the market.
- Disadvantages and issues raised:
• Competition among companies operating in the same industry that
develop telecommunication products and services.
• Competition of potential competitors: Potential competitors are
businesses that are not currently in the telecommunications product service
business but are likely to participate in business development activities in that
industry. Businesses in the industry are always looking for ways to limit other
businesses want to participate in the industry because if there are new
competitors, the profitability of the business will be affected. In fact, in Vietnam
a number of businesses are not operating in the field of telecommunications
services business but have also participated in this industry such as Electricity

of Vietnam.
• Pressure from customers: This pressure comes to any development
industry, not just the development of mobile telecommunications services. As
the economy develops, consumers' awareness is getting higher and higher, the
demand for telecommunications service quality is also increasing. This makes
the business development of this product always under pressure to explore and
11


improve the quality of telecommunications services.
3.3. Overview of the development process and characteristics of
telecommunications business development of Hanoi Telecom
This section outlines the development process and business characteristics
of Hanoi Telecom Joint Stock Company - Hanoi Telecom for more than 15
years of construction. Vietnam Telecom's mobile network of Vietnam Telecom
is a result of the cooperation and development process with Hutchison Telecom,
the world's leading telecommunications corporation.
3.4. Business situation of Hanoi Telecom
a) About expanding the coverage area
Recognizing that besides lowering the cost of services, the company also
had to improve the service quality, Hanoi Telecom quickly implemented the
construction of a network of base stations nationwide, so in 2008, Hanoi
Telecom only there were 1000 BTS, by 2009 it was 5000 BTS.
b) Regarding subscriber development and market share expansion
Hanoi Telecom has successfully implemented its focused growth strategy.
In 2009, Hanoi Telecom developed more than 7 million new subscribers, an
encouraging number for a new network operator.
c) Development of service scale
Hanoi Telecom is always strengthening its market expansion and service
scale activities by creating a competitive advantage for its products and

services. The competitive weapons that the company uses are mainly product
quality, product cost, product differentiation, customer care regime.
d) Regarding turnover
Hanoi Telecom has well implemented its strategy of setting prices lower
than competitors, thus attracting a large number of customers to join the
network, increasing revenue rapidly. Currently, Hanoi Telecom is one of the
market leaders in terms of low price.
e) Marketing activities, branding and development
Currently, marketing is a strength of Hanoi Telecom, the company has a
strong marketing staff, distribution channels and customer care agents
everywhere contributing significantly to the Vietnamobile brand.
f) Regarding renovation of enterprise management organization
Hanoi Telecom always chooses its human resource strategy to put people
at the center, considers businesses as a means for people to promote their
12


creative talents, trust their partners, build a working team with effective.
Table 3.4: Structure of human resources of Hanoi Telecom

Others

Primary

iateIntermed

College

Grad

1
0%

gradPost

40
2%

40

Total 2.043 1.363 630
50 12 1.070 400 373 125 22
Rate 100% 66,8% 38,8% 2,4% 1% 52% 20% 18% 6% 1%

>28 and
<40

trainingVocational

1
2

Total

<28t

No.

Level
High school

Age range

Source: Hanoi Telecom Administration Department
The table above shows that the proportion of young workers under the
age of 40 accounts for up to 90%, of which the number of undergraduate and
graduate students accounts for 53%, this is a dynamic and creative young staff. ,
devoted to work. This is the strength of Hanoi Telecom used to meet the service
needs of the majority of customers.
3.5. Analyze the competitive advantage in Hanoi Telecom's
telecommunications business according to Michael Porter's 5-force
competition model
This part analyzes the competitive advantage in Hanoi Telecom's
telecommunications business according to Michael Porter's 5-force competition
model. Accordingly, the company has low bargaining power of suppliers but
high bargaining power of potential rivals, high bargaining power of buyers,
high industrial comparativeness, and high threats from subtitutes.
3.6. Assess the status of business development of Hanoi Telecom
a) Achievements
- Socializing telecommunications services
Nowadays, young people have a higher lifestyle and increasing needs.
Consumers are focusing on modern and convenient living, so products or
services can give an image of social status or an important role. Hanoi Telecom
has known to take advantage of these opportunities to socialize its
telecommunications services.
On the other hand, word of mouth culture in Vietnam plays an important
role in the marketing of new products and services. Hanoi Telecom has paid
attention to customer satisfaction with good service quality and low price,
13

which is the best and most effective advertising that businesses should apply.
- Narrow the distance of telecommunications technology development
with the world
In Vietnam, businesses including Hanoi Telecom have been applying 3G
to their products and services. Telecommunication service operators such as
Hanoi Telecom have paid attention to the changing technology of the world
market to select and invest in their own technologies, avoiding becoming a
latecomer in providing telecommunication services. mobile.
- Diverse and user-oriented services
User-directed
When preparing to enter the development of mobile telecommunications
services, Hanoi Telecom determined a competitive strategy from the beginning,
which was to compete on price and advantages of latecomers such as service
quality, initial cost. investment, distribution system, online customer care
system (customer service centers), ...
Diversify services
Products that mobile telecommunications service providers bring to
customers are packages with the convenience of usage as well as the services
that accompany it to best satisfy customers' needs. Hanoi Telecom also always
pays attention to that and always focuses on creating packages to best satisfy
customers' needs, in accordance with the psychology of each specific customer
group. That's why the company offers packages like VMOne, VM24, and
VM18. Hanoi Telecom created the package based on the needs of customers
and based on their psychology.
b) Shortcomings and limitations
- Uneven growth
In its overall strategy, Hanoi Telecom also identified a small market, full
of potential as a rural market with more than 60% of the population
concentrated there. However, telecom businesses in general and Hanoi Telecom

in particular have not really paid attention to effectively exploiting mobile
services in rural areas but are focusing more resources on competing in the
market in cities. Towns. Rural market is still a market gap that Hanoi Telecom
needs to exploit and if there is a reasonable exploitation strategy, enterprises
will gain significant profits from this market.
- The density of service users is still low
Due to our changing economic conditions, the gap between rich and poor is
still large, the rich are richer and the poor are not better off, leading to the large
consumption of services. In urban areas, rural consumption is not significant.
In addition, due to objectivity from the customer and the psychology of
14


any supplier who promotes, buy sim and use the provider's service and only use
it until the end of the promotion, it will only lead to the number status High
virtual subscribers, the number of service users is low.
- Profit / subscription ratio is declining
Hanoi Telecom's low pricing strategy has both advantages and
disadvantages, which leads to price competition among telecom service
providers. Moreover, if customer loyalty is not strengthened, the average
revenue per subscriber will decrease, leading to the declining profitability rate.
On the other hand, it is likely that new competitors and the industry will also
adopt low-cost strategies to penetrate and dominate the market, they are the
latecomers so they will have technological advantages compared to their
competitors. before.
- Service quality is not yet stable
Hanoi Telecom is committed to providing customers with increasingly
high quality services, but it still cannot remove certain restrictions such as
congestion on holidays, New Year holidays and holidays.
Sometimes customers encounter the inconvenience when they want to

register to use Hanoi Telecom's mobile services, sometimes they want to change
the customer service which cannot be done via SMS but must go to the Hanoi
Telecom store to registration.
- The number of services is limited
It can be said that Hanoi Telecom's packages have different differences
compared to competitors and thus it becomes a choice of customers when
deciding to use Hanoi Telecom's mobile telecommunications services.
However, the value-added services and network utilities are not much different
from the competitors, maybe it is just a little lower price than other competitors.
Services with low value-added services and market prices of using value-added
services in general and of Hanoi Telecom in particular are still relatively high,
not attracting a large number of customers to participate. use.
- Inadequacies from management mechanisms
Sometimes the company has not really paid attention to the efficient
exploitation and use of human resources, and there are still idle employees
while other employees struggle with thousands of jobs. Therefore, it is required
to carry out effective work assignment to ensure the smooth and efficient
operation of the members. At the same time, the fact that employees leave the
company still results in the loss of training costs for the company and the
company also loses good qualified employees.
3.7. Opportunities and challenges for the development of Hanoi Telecom's
telecommunications business
a) Opportunities for business development of Hanoi Telecom
15


- Supplier
Hanoi Telecom as well as other service providers in the market are always
affected by the suppliers. Hanoi Telecom always has to import telecommunication
equipment from suppliers in order to improve the quality of coverage and the

quality of services provided to customers. However, there are many providers of
telecommunication services on the world market. This is a advantage for the
company in selecting suppliers and avoiding pressure from the supply side.
- Potential customers
Main customers of mobile telecommunications service providers are
concentrated mainly in cities and towns, the percentage of customers in rural
areas is very small compared to the potential of this market. The majority of
customers are characterized by preferring low-quality and appropriate products
and services, thus creating a market gap for businesses after exploiting services.
If service providers such as Hanoi Telecom meet the needs of rural customers,
they will gain a source of potential customers.
- Potential market
Living standards are increasing, consumption of mobile
telecommunications services is therefore increasing, and service providers like
Hanoi Telecom need to recognize this trend to seize market opportunities and
create new products. New products and services to meet the needs of users in
each strategic period.
b) Challenges to business development of Hanoi Telecom
- Competitors
Vietnam's telecommunications market is in a period of strong growth, one
of the three key industries of Vietnam, competition among enterprises in the
industry is fierce. The price war, product quality is being strongly applied by
businesses. Especially for mobile telecommunications services, it is even more
important. Each business has a certain advantage in the fight: price, products,
technology, brands, customers, ... This has greatly affected the development of
mobile telecommunications services. by Hanoi Telecom.
-Supplier
In addition, all mobile service providers have to make connections with
each other, in which VNPT has the power to create pressure for businesses to
connect through them because they have the infrastructure. This is another

difficulty for mobile telecom service providers like Hanoi Telecom.
- Customer psychology
It can be seen that whenever suppliers offer new promotions, they attract
a mass of customers from other suppliers and they use the service from two or
more providers simultaneously, Sometimes when a promotion ends, they no
longer use the service of that provider. That sets Hanoi Telecom a requirement
on how to keep customers staying with the service providers for the long term,
which means how to be loyal to the services that businesses provide.
16


- Pressure is replaced
For mobile telecommunications services, the products that can be
replaced are fixed line phones and Internet. These two types of services coexist
with mobile telecommunications services. Especially with the advent of
wireless fixed-line phones with the ability to use services similar to phones, this
is yet another pressure for mobile telecommunications services.
- Challenges in telecommunications
• Nearly one-third of Vietnam's villages are located in mountainous areas
and do not have access to telecommunications services, which makes the
deployment of new network technologies more likely to be delayed.
• The pricing competition strategy of all three leading operators in the
country is likely to maintain pressure to reduce the average mobile revenue of a
customer.
• The number of inactive mobile subscribers has not been clarified, so the
market still lacks transparent and reliable data.
• The field of landline phones may go into recession, with potential
negative consequences for the growth of DSL lines.
• As the market for data services for mobile phones grows, this can have
potential negative consequences for the development of fixed broadband

services.
• A slowdown in economic growth in 2009 and 2010 may weaken
investment and landline expansion plans.
3.8. The context of international integration of Vietnam
telecommunications
a) Actual situation in anticipation of Industry Revolution 4.0 of
Vietnamese telecommunications enterprises
Since the end of 2016, the Ministry of Information and Communications
has been actively researching and reporting to the Party and Government
leaders on the trend of Industry 4.0 and the implementation opportunity.
On May 4, 2017, the Prime Minister issued Directive 16 on strengthening
the capacity to access the Industrial Revolution 4.0, in which the Ministry of
Science and Technology was assigned to preside and coordinate with relevant
ministries and local agencies. related to science and technology programs and
tasks, approaching Industry Revolution 4.0.
One of the tasks assigned by the Government to the Ministry of
Information and Communications in Directive 16 is to focus on infrastructure
development, IT, and policies to encourage enterprises to invest in developing
and trading in new technologies.
At the same time, the Ministry of Information and Communications has
invited individuals, scientists, organizations, enterprises ... to continue
contributing to the Party and State's policies on the Fourth Industrial
Revolution, the Ministry of Information and Communications and other
17


ministries. Relevant departments and agencies will continue to improve
policies, promote the strong development of broadband infrastructure in
Vietnam, create a solid foundation and be ready to receive opportunities for
Industry 4.0.

b)
Background
of
international
integration
of
Vietnam
telecommunications
According to the 2013 AWS market research report, by 2020, AsiaPacific, including Vietnam, will be the region with the strongest growth in data
and needs related to usage, share, exchange, store, backup and protect data
content of individuals and organizations. The recent intersection of
telecommunications technology, especially mobile telecommunications and
information technology, has enabled service providers to offer new services to
end users, as well as other solutions to serve the needs of business
administration and management of businesses quickly.
Also according to the development roadmap to 2020 of the Information
and Communications industry, Vietnam's mobile telecommunications operators
will soon deploy 4G LTE high-speed data network system.
3.9. Overall assessment of Vietnam's telecommunications business under
the SWOT model and the development of telecommunications services
business in Vietnam in the context of international integration
a) Strength (Strength)
- High competition in the field of mobile phones: According to Wireless
Intelligence, the HHI concentration index (Herfindahl-Hirschman Index) for
Vietnam's mobile services in the second quarter of 2011 reached 2,942 points,
ranked 29th / 224 countries (the lower the index, the more competitive the
market).
- Impressive growth in the field of mobile phones in 2010, with the
number of subscribers growing more than 40%.
- WTO accession in 2008 has made Vietnam become a more attractive

investment center. Stronger growth in the mobile phone market could be the
result of this.
- The penetration rate of landline phone and high rate of internet users in
big urban centers like Ho Chi Minh City, Hanoi, Da Nang and Hai Phong.
- Competition exists in the landline and internet access market;
- The intellectual level of the rural people is gradually being improved,
which is a good sign for the need for rural wired services to develop strongly
and continue in the next few years.
b) Weakness
- Market dependence on prepaid services has a strong impact on reducing
ARPU levels.
- The shortage of key strategic investors in the field of major mobile
operators.
18


- Although communication is relatively advanced in large cities, many
rural areas have little or no access to telecommunications services.
- Vietnam's fixed voice and internet access market is dominated by statecontrolled operators such as VNPT and Viettel.
- Although alternative broadband infrastructure is currently being
explored, broadband growth continues to depend largely on DSL.
- Low fixed penetration rates in rural areas limit the scope of DSL
broadband growth.
- Although the growth rate of Internet users is being improved, access to
internet infrastructure in rural Vietnam is still limited.
- Broadband charges remain high, creating a barrier for low-income
subscribers to access:
c) Opportunity
- The participation of the eighth operator, Indochina Telecom, as a
MVNO and the ninth operator, Vietnam Multimedia Corporation, will enhance

the level of competition. At this time, both operators have not yet provided the
service.
- Reducing the use of multiple SIMs will allow new numbers to be
provided to 3G service subscribers.
- The government will allow unlicensed 3G operators to link with
deployed network operators to provide 3G services.
- The government's approach to the liberalization of the
telecommunications industry may provide an entrance for strategic investors
such as NTT, DoCoMo, SingTel and Telenor.
- Network operators are investing significant amounts of money in
deploying 4G technologies such as WiMAX and LTE.
- At the national level, the broadband penetration rate is still low - this
means that the sector has significant growth potential.
- Significant opportunities exist to develop alternative broadband
technologies, including WiMAX, LTE and cable; Internet services on WiMAX
and LTE have the potential to enhance the penetration of internet users in rural
areas of Vietnam.
- The Telecommunications Law has been passed, allowing private
companies to build network infrastructure and will open the
telecommunications market to foreign investors.
d) Challenge (Threats)
- Nearly one third of Vietnam's villages are located in mountainous areas
and do not have access to telecommunications services, which makes the
deployment of new network technologies more likely to be delayed.
- Rate competition strategy of all 3 leading operators in the country is
able to maintain the pressure to reduce ARPU on mobile.
- The number of inactive mobile subscribers has not been clarified, so the
19

market still lacks transparent and reliable data.
- Landline telephony may go into recession, with potential negative
consequences for DSL growth.
- As the data service market for mobile phones grows, this can have potential
negative consequences for the development of fixed broadband services.
- Slow economic growth in 2009 and 2010 may weaken investment and
landline expansion plans.
CHAPTER 4: SOME SOLUTIONS TO DEVELOP
TELECOMMUNICATION SERVICE BUSINESS IN VIETNAM IN
THE CONTEXT OF INTERNATIONAL INTEGRATION
4.1. Objectives and strategies of Vietnam's telecommunications business
a) Objectives
• Bringing Vietnam Telecommunications into a leading mobile service
provider in Vietnam: The largest market share, the largest coverage area, the
largest network capacity.
• Commitment to bring quality services, convenience and the most
reasonable price policy for all customers.
• Building Vietnamobile brand into a strong brand in the world.
• Minimize business costs by expanding the scope of development on
existing infrastructure and customers.
• Improve service quality by developing network infrastructure and
technological innovation.
• Building a solidarity, determination, dynamic creative team to
successfully fulfill the set targets.
b) Direction
Still implementing the centralized growth strategy, continuing to expand
market share and penetrating into potential markets, determined to maintain its
position as one of the leading enterprises in Vietnam's mobile market with many
awards french as:
• Make a lower bid than your competitor to attract customers to join your

services
• Differentiate your products from competitors, bringing convenience to
customers when using the service.
• Investing in exploiting value-added services in the coming time, this
will be a new direction of competition for telecommunications service providers
when the market becomes saturated.
• Investing in improving network quality, ensuring to become the best
20


network provider in Vietnam
• Building Vietnamobile brand into a brand close to customers, talking
about Vietnam Telecom is the best brand in providing mobile services in
Vietnam.
• Paying attention to expanding service exploitation in potential markets,
which are large markets in rural areas.
4.2. Major solutions to develop Vietnam's telecommunications market
business
- For the state
• Solutions to improve the quality of life for people, improve national
income and per capita income
• Solutions to stabilizing market prices to avoid inflation like today
• Solutions to create an open environment for businesses to operate,
increase competition, avoid monopoly
• Socio-cultural solutions to eliminate the old-fashioned psychology of the
people, gradually close the gap between the rich and the poor
- For managers of telecommunication enterprises
• Paying attention to the activities of monitoring and supervising the
implementation of strategies, not only for the specialized departments to carry
out but also for the senior managers to regularly supervise and supervise the

activities. of parts
• Listen to the opinions of subordinates because they are the closest to the
implementation process of the business strategy, subordinates can open up new
ideas very well for managers.
• Strengthening relationships with senior governmental authorities will
have many advantages for businesses.
4.3. Solutions to develop telecommunications services business and improve
Vietnam Telecom's competitiveness
a) Group of solutions to expand coverage and improve service quality
- Technology
• Continuing to invest in modern technology infrastructure to improve the
quality of services provided to customers.
• Follow the world's technological fluctuations to have an appropriate
direction to avoid technological backwardness
• Investing in modern information technology systems to help customers
better manage and fulfill customer requirements quickly and accurately.
- About network development and coverage
21


Further expanding the infrastructure network and coverage by increasing
the number of BTS mobile base stations to match the development of mobile
networks, ensuring increasingly high call quality. In order for customers to
complain about Vietnam Telecom, the company is only concerned about the
discount to compete while the network quality is worse.
b) Group of solutions to increase subscribers and expand market share
- Build and affirm the brand position of the business
• Invest in creating new packages that are suitable for each market
segment in the coming time, such as packages for customers who are regularly
contacting abroad or packages for customers who are Rural people have

demand to use the service with low price and long card duration.
• Investing in providing value-added services to customers, you can
refer to the value-added services that are favored abroad to enrich the list of
value-added services. that businesses provide to the market, developing many
value-added services for high revenue such as ringback tones, conference
calls, chats, ...
- Searching for new market segments
• Making low prices in this market
• Perform strong promotions for customers using the service in this area
• Strengthening sales points, agents providing cards in remote areas to
help customers quickly recharge when needed
• Investing in more network infrastructure brings higher quality of service
to customers.
c) Group of solutions for development of service scales
• Diversify mobile content
• Develop mobile commerce applications
• Development of broadband television services requiring high-capacity
3G network infrastructure
d) Group of Marketing solutions, brand building and development
- Solutions for service quality and value-added services (Product)
- Price solutions (Price)
- Solutions about distribution channels (Place)
- Product extension, branding solutions (Promotion)
- Customer care solution
e) Solutions to increase revenue
- Distribution channel
• Reviewing and re-planning the distribution channel system in order to
improve the quality of the distribution channel system, eliminate inefficient
22

agents and adversely affect the Vietnamobile brand, adding more channels. New
distribution works more effectively
• Development of distribution channels system is direct stores, retail
outlets across the country to create favorable conditions for customers in
transactions such as fee payment, service conversion and convenience for care.
customers at the company.
- Set up appropriate rates
• Maintain a leading position in the market for freight rates and introduce
new products and services to the market
• Maintain a freight rate that is more attractive than competitors from
10-15%
• Tariff adjustments and new packages must target two market segments,
high consumer and young customers, who are new to the service to achieve two
goals: increase subscribers and not reduce average revenue per subscription.
• Negotiate rates and sharing of value-added services with entertainment
providers that offer affordable and affordable rates.
• There are promotions that give money to customers who listen a lot or
can apply some discount level to subscribers who have high levels of service
use during the month.
f) Solutions for organizing and managing enterprises
- Completing the information and communication system
- About training and developing human resources
- Regarding the inspection and supervision
- Regarding improvement of development processes
4.4. Recommendations, suggestions
A number of proposals on business development of telecommunications
services by 2020 with a vision to 2030 for the three main groups of groups are
telecommunications corporations, enterprises and provincial / municipal
People's Committees. , and Central Ministries.

23


CONCLUSION
Telecommunication service business plays an important role in the
development of Vietnam telecommunications in general and in case of Hanoi
Telecom in particular. Telecommunications service business is continuing to be
interested in researching at various levels, sectors, businesses and individuals at
central and local levels, many research projects, many topics and articles.
mention these issues. Especially in the context of Vietnam's participation in the
World Trade Organization (WTO), telecommunications is one of the leading
fields in the context of opening up international integration.
This thesis has summarized the general theory of telecommunication
services and proposed criteria affecting competition in telecommunication
service business. That is the premise to assess the current situation of
telecommunication service business in Vietnam in previous years. In addition to
advantages such as positive growth rates, infrastructure and revenue, the
number of consumers is high; the fact is that the telecommunication service
business in Vietnam is very competitive. This is due to Vietnam's open-door
integration policy as well as the potentials of the telecommunications service
business.
Through assessing the current situation of telecommunications service
business in previous years in Vietnam, the thesis offers suggestions and
suggestions to groups of subjects changing to develop telecommunication
service business in the following years. . These proposals are also based on
the goals and directions of Vietnam's telecommunications to 2020 with a
vision to 2030.
The author has made great efforts to achieve his desires for the purpose of
researching this topic. However, due to a few restrictions, the results of the

thesis are certainly still inadequate. The author is looking forward to the
comments of teachers, teachers, experts, colleagues and those who are
interested in this field so that the topic is more complete and more practical
with the practice of economic development. telecommunication services and
24


socio-economic development of Vietnam.

25