Vietnamese telco Viettel launches new business to deepen digital offerings

Viettel

Viettel Group, Vietnam’s largest telco, has set up Viettel Digital Services (VDS) to develop its digital ecosystem.

VDS said in a statement that it targets to have 26 million subscribers within its ecosystem and establish 600,000 payment service points by 2025.

The parent group has already had some 76 million mobile subscribers to date.

“VDS will focus on developing strategies in some of the country’s main industries including the digital financial sector, data services sector, credit, insurance, advertising and e-commerce sectors. We want VDS to transform Viettel from a traditional telecoms company into a digital services provider while playing a key role in the construction of Vietnam’s digital economy,” said Le Dang Dzung, acting chairman cum general director of Viettel Group.

One of the focused areas for VDS will be mobile money, which will enable local mobile users to transfer money and make payments via their mobile accounts – especially unbanked customers or people with little access to conventional financial services.

Vietnam has said it is planning a mobile money sandbox for local telcos in a bid to boost a future cashless economy. While it will take much longer for bank services to cover the current 70 per cent unbanked population, technology can bring financial services to people faster.

Viettel is one of the most active conglomerates in Vietnam that is embracing technology to expand its operation. From telecommunications, Viettel has widened its reach to technology services, network security, and digital services. Its recent projects include online payment system ViettelPay, ride-hailing app MyGo and an e-commerce business called Voso.