Viettel has unveiled a new subsidiary dedicated to digital services as the telecommunications provider targets new markets in Vietnam.
Under the banner of Viettel Digital Services (VDS), the new business - becoming the company’s eighth subsidiary - is tasked with developing strategies and providing solutions to create a digital society.
“Viettel Digital Services Corporation or 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,” said Le Dang Dzung, acting chairman and general director of Viettel Group.
“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.”
One of the main goals of VDS is to fully develop "mobile money" to allow all mobile users to transfer and receive money, alongside making payments via mobile accounts irrespective of location.
According to Le, this will remove the physical barriers to provide "safe and simple" digital financial services to people in rural and remote areas who have limited access to traditional financial services.
“Such digital financial infrastructure and digital trading will not only connect people across the country, we will also cooperate with companies and the start-up community to create a cashless society,” he added. “This will, in time, become the foundation of Vietnam's national payment and financial infrastructure.”
Le said VDS aims to have 26 million subscribers within its ecosystem and establish 600,000 payment service points by 2025.
Developing a digital society is Viettel's latest project to help Vietnam keep up in the global technology race. Over the last three decades, the telco provider has built a telecommunications network covering most of the country's population. The business has also entered other industries including information technology services, network security and digital services.
The launch comes weeks after Viettel rolled out an electronic system designed to help the Vietnamese government "increase efficiency and improve business friendliness".
Labelled “e-Cabinet”, the telecommunications giant tailored the system based on the operations and characteristics of the Vietnamese government.
Specifically, the system aims to eliminate the use of paper by "securely updating, storing and managing documents" for government meetings while offering electronic voting with digital signatures and automatically sending notifications and reminders to officials.