Right in the beginning of 2024, Viettel Construction Joint Stock Corporation (Viettel Construction) decided to invest in the project "Building BTS station infrastructure for lease in 2024" with a total investment capital of 1,460.4 billion VND.
The project has a scale of up to 5,000 BTS stations, to be implemented in 63 Provinces/Cities during the period from Quarter 1/2024 to 2026. With this roadmap, it is expected that Viettel Construction will increase the number of BTS stations to 9,975. station in 2024, maintaining the position of No. 1 TowerCo in Vietnam. Bringing Viettel Construction to the Top 10 TowerCos in ASEAN and the Top 30 TowerCos in the world.
It is expected that in the period 2025-2030, each year Viettel Construction will build an additional 2,000 BTS stations
Vietnam currently owns 89,025 BTS stations, ranking 5th in APAC
In 2023, revenue from Viettel Construction's infrastructure rental investment sector will reach 435.5 billion VND, up 39% over the same period in 2022. This growth motivation comes from BTS station leasing, a growth of 68% %. Pre-tax profit in the field of infrastructure investment for rent will reach 92 billion in 2023, an increase of 46% compared to 2022.
Currently, pre-tax profit on infrastructure investment revenue of Viettel Construction reaches a rate of 20-30%. Viettel Construction's investment activities are evaluated as effective because the Corporation specializes in telecommunications infrastructure, providing full-service services from consulting, design, project construction, operation and investment. Therefore, costs are optimized during the implementation process, helping Viettel Construction recover capital quickly.
Forecasted by 2030, the revenue of Viettel Construction's rental infrastructure investment sector có thể đạt hơn 2.000 tỷ đồng
Recently, the Ministry of Information and Communications approved the auction plan to use the 5G spectrum. The Ministry of Information and Communications requires that after 2 years from the date of licensing, businesses commit to deploying at least 3,000 5G BTS stations and providing services no later than 12 months from the date of licensing. 5G frequency bidding activities will be the basis for an explosion in the telecommunications market, helping to increase the demand for large small cell stations with density distributed throughout the country to ensure coverage. The nature of the 5G network requires high speed, so the construction distance is shorter and the number of 5G station locations will be greater.
With this context, Viettel Construction's revenue will not only increase from investing in the construction of 5,000 newly built BTS stations, but can also boost from the construction of telecommunications infrastructure for Viettel Group and other network operators in the region.
According to the latest report of TowerXchange's Asia Guide Q3/2023, Vietnam is a relatively mature telecommunications market, however Vietnam is proving that the market still has room for significant growth with nearly 100 million people. With 136 million subscribers coming mainly from carriers: Viettel (52.4%), VinaPhone (24.18%), MobiFone (19.59%), Vietnamobile (3.61%), Gmobile and small TowerCos ( 0.42%). TowerXchange believes that TowerCos in Vietnam will become an important commercial partner of network operators in the near future.
Besides investing in BTS stations, Viettel Construction's Infrastructure Investment field also invests in fiber optic cables, DAS and solar energy. The amendment to the Electricity Law and Renewable Energy Law in 2024 will help Viettel Construction increase investment opportunities.
According to the content of Report No. 709/BC-ĐGS dated December 4, 2023 of the thematic supervision team on "Implementation of policies and laws on energy development in the period 2016 - 2021", the Standing Committee The National Assembly requests the Government to direct the research, completion or submit to competent authorities for completion of legal documents in Appendix 1 of the List of legal documents. Propose amendments, supplements and new promulgations in the field of energy; including 14 laws: Electricity Law, Law on economical and efficient use of energy; Investment law;…
In 2024, the whole country will spend 657,000 billion VND for public investment, of which investment capital for transport infrastructure development accounts for the majority, up to 422,000 billion VND. This is an opportunity for Viettel Construction to accelerate the investment progress of underground cables along the North-South Expressway, when in 2023 Viettel Construction has been approved by the Ministry of Transport to organize a joint venture between Viettel Construction and HBO Telecommunications Joint Stock Company. Research, prepare investment and implement investment in fiber optic cable project along the North-South Expressway (from Da Nang to the South).
hus, with the macro context and domestic telecommunications market demand, growing transportation and energy infrastructure will help Viettel Construction accelerate its development to become a company with billion-dollar revenue by 2030.