NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS

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INTERNATIONAL BUSINESS
GROUP REPORT
VIETTEL’S GLOBAL BUSINESS
OPPORTUNITIES IN COUNTRY HAITI

Group 6
1. Nguyễn Mai Hương - 11219306
2. Phạm Thị Ngọc Huyền - 11216430
3. Đồng Hạnh Linh - 11218785
4. Nguyễn Thị Tuyết Mai - 11213697
5. Vũ Thị Mai Phương - 11214913
6. Nguyễn Thị Hải Yến - 11219224

Hanoi, 2023
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 TABLE OF CONTENTS

1. Introduction.......................................................................................................... 2
2. Haiti Market Overview.......................................................................................... 4
2.1. Geographic....................................................................................................... 4
2.2. Economic.......................................................................................................... 5
2.2.1. Overview...........................................................................................................5
2.2.2. Haiti - International Integration........................................................................6
2.3. Cultural & Social................................................................................................ 8
2.4. Political environment........................................................................................ 9
2.5. Legal environment.......................................................................................... 10
2.6. Technology...................................................................................................... 10
3. Potential market for this product or service........................................................11
3.1. Overview of the telecommunications industry in Haiti.....................................11
3.2. SWOT analysis................................................................................................. 12
3.3.1. Competitors in the Industry.............................................................................13
3.3.2. Threats of New Entrants..................................................................................14
3.3.3. Power of Suppliers...........................................................................................14
3.3.4. Power of Customers........................................................................................15
3.3.5. Threat of Substitutes.......................................................................................15
3.4. Conclusion....................................................................................................... 15
4. Absolute or comparative advantages..................................................................16
4.1. Absolute Advantage: Growing Population.......................................................16
4.2. Competitive Advantage................................................................................... 17
4.2.1. Limited Competition........................................................................................17
4.2.2. Government Support.......................................................................................18
4.2.3. Labor Cost.......................................................................................................19
5. Recommendations to promote Viettel's business activities in Haiti......................20

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6. References.......................................................................................................... 24

1. Introduction
Viettel: Viettel Military Industry and Telecoms Group, they was established:
1989. It is a state-owned enterprise and operated by the Ministry of National Defence,
making it practically a military-associated corporation. Viettel is the largest mobile
network operator in Vietnam and has 76 million domestic customers. The group consists
of more than 20 subsidiary companies running different types of business including
telecom, investment, real estate, foreign trade and technical services. Viettel Global's
accumulated revenue for the whole year 2022 reached 23,630 billion VND - equivalent to
more than 1 billion USD and increased 22.8% compared to 19,200 billion VND in 2021.
Viettel determines that investing abroad is a long-term strategy and to maintain
Viettel's sustainable development. In terms of visuals, they want to become a leading
enterprise in creating a digital society in Vietnam, reaching 100 trillion in service revenue
by 2025. Their strategy is pioneering and breaking through in the field of applying
modern and creative technology, thereby being able to offer solutions to create new
products and services with high quality and reasonable prices that can meet the needs of
customer requirements and choices.
Viettel Global was established in October 2006 with a vision and responsibility of
turning Viettel into a strong telecommunications group on the international stage. After
17 years of development, Viettel Global is one of the biggest Vietnamese overseas
investors. It is now operating 10 telecommunications companies in 10 countries across
Asia, Africa and Asia with serving more than 58 million international customers using
mobile, internet bandwidth, landline, and day-free services.
Viettel chose Haiti to become an overseas investment destination. On September
17, 2009, Viettel Group of Vietnam signed an investment agreement in Haiti with a
telecommunications joint venture under the Central Bank of Haiti called Teleco.
Natcom is a joint venture between Télécommunications d’Haiti S.A.M (Haiti)
and Viettel Global (Vietnam). Their CEO is Nguyen Huy Dung and headquartered in
Port-au-Prince, Haiti.
Before the earthquake in 2010, fewer than 2 percent of Haitians had service from
its landline monopoly while Teleco’s high-speed data network was minuscule. And while
it controlled wireless spectrum, it had no competitive cell phone service.
Telecommunication demand is very high, while only 35% of the population can use the
service at high prices and concentrated only in large sectors. Because many other
companies also have to rebuild infrastructure like Natcom while Viettel's energy source is

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cheap, only 3 cents/minute, so Haiti is a potential market for Viettel. All of these are
reasons for Viettel’s choice to invest in Haiti.
Natcom provide telecommunications service such as: Mobile, broadband Internet,
Leased Line rental service, digital services: Natcash e-wallet, Digital content, Digital
solutions for businesses (Data storage center; Virtual server...), E-Government solutions
(N-Office smart electronic office; Online conference…)
By the end of August 2020, the profit of Natcom, Viettel's brand in Haiti, reached
more than 17 million USD, an increase of 26.7% over the same period; Cash flow etc
reached more than 23 million USD, an increase of 13%. For the 1st quarter of 2023,
Natcom's service revenue reached 84 million USD, completing 108% of the plan,
growing about 29% and profit reaching 110% compared to 2022. In 2023 Viettel aim to
become no.1 position in mobile market share in Haiti, Viettel Haiti (Natcom) continues to
pursue the goal of rising to the No. 1 position in this Caribbean island nation.
In poor countries like Haiti, investors often think that it is difficult to have a
chance to succeed. However, Viettel's leaders found huge potential in Haiti and decided
to invest in this country. The growth and business achievements of Viettel over the
previous ten years demonstrate that was the correct decision. Therefore, in this report, we
will analyze Viettel’s global business opportunities in the country Haiti.

2. Haiti Market Overview

2.1. Geographic
Haiti is situated on the western third of the island of Hispaniola in the Caribbean.
Its proximity to the United States, Latin America, and the wider Caribbean region makes
it a strategically located trading partner. The United States is Haiti's major trading
partner, and its proximity to the U.S. market is a significant advantage. Haiti lies along
important maritime trade routes connecting North and South America to the rest of the
Caribbean and beyond. This location could make it a strategic hub for goods in transit.
But the island's geography presents Haiti with logistical challenges because goods often
need to be transported by sea or air. Adequate air freight and shipping facilities are vital
for efficient international trade.
Haiti has enormous maritime potential with more than 1,500 kilometers of
coastline and has several ports along its coastline, with the most significant being the
Port of Port-au-Prince and the Port of Cap-Haïtien, but is among the Caribbean countries
that exploit their marine resources the least. These ports serve as the primary gateways
for the country's international trade. Therefore, it is necessary to improve port
infrastructure that can enhance trade capacity.

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 Haiti indeed remains highly vulnerable to natural disasters, particularly
hurricanes and earthquakes. The most devastating earthquake in recent history occurred
on January 12, 2010, when a 7.0 magnitude earthquake struck near the capital, Port-au-
Prince. This earthquake resulted in widespread destruction, loss of life, and displacement
of people. Haiti is exposed to hurricanes and tropical storms, primarily during the
Atlantic hurricane season, which typically runs from June to November. In 2016,
Hurricane Matthew, a powerful Category 4 hurricane, struck Haiti, causing extensive
damage to infrastructure, agriculture, and leading to a humanitarian crisis. This risk can
disrupt international trade and supply chains, making it important to have contingency
plans in place.
It is important for businesses and investors investing in Haiti to consider the
favorable and unfavorable factors of this geographical location for successful
international trade activities.
2.2. Economic
2.2.1. Overview
Haiti is the poorest country in the Western Hemisphere. GDP in Haiti is
estimated to be $32 billion international dollars at the end of 2022. The economy of Haiti
has grown at an average annual growth rate of -2.0% in the last four years and is ranked
the 21st largest economy in Americas, ahead of Guyana. More than half the population
lives below the poverty line. Natural disasters are among the biggest obstacles to Haiti's
economic development, especially earthquakes and hurricanes. The devastating
earthquake in 2010 disrupted economic activities, causing Haiti to rank 115th in the
world in terms of economic growth. Despite efforts to improve the economy after the
disaster, progress in reforming Haiti's economy has been minimal.
Haiti's economy depends heavily on foreign aid. About 30-40% of the
government's national budget is covered by foreign aid. From 2010 to 2020, the United
Nations allocated more than $13 billion in international aid to Haiti, most of which
funded disaster relief missions and development programs. Haiti's heavy dependence on
foreign aid can create concerned about the sustainability of their operations in a country
that is heavily dependent on foreign aid for foreign investors, especially if there is a risk
that aid levels may decrease in the future.
Haiti has an agricultural economy. In 2022, the agricultural sector accounts for
21.9% of Haiti's GDP structure. Agriculture is also one of Haiti's main exports after
textiles. More than half of the world's vetiver oil (an essential oil used in high-end
perfume) comes from Haiti. Bananas, cocoa, and mangoes are important exports.
Haiti's industrial sector accounts for 20.8% of GDP. Leading industries in Haiti
produce beverages, butter, cement, detergents, cooking oil, flour, refined sugar, soap, and

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textiles. Growth in both the manufacturing and industrial sectors in general has slowed
due to lack of investment capital.
Haiti's service sector accounts for 52% of the country's gross domestic product
in 2022 and employs 50% of the workforce. According to World Bank statistics, the
service sector is one of the few sectors of the Haitian economy that maintained steady,
albeit modest, growth throughout the 1990s. The services sector is dominated by travel
and communications. Most basic services, like healthcare, water and sanitation, are
provided by private institutions that are not regulated by the government. This shows that
the potential for development of service industries in Haiti is huge.
Regarding exports, Haiti mainly focuses on exporting textiles and garments
(accounting for 90% of total export turnover) as well as agricultural products such as
coffee, cocoa, mangoes, and essential oils. Haiti has also moved to expand into more
advanced manufacturing, producing Android tablets, current sensors and transformers.
The United States is the most important destination for the country's exports, with a trade
turnover of 1.13 billion USD in 2021. Next is Canada, with a trade turnover of about 57.4
million USD, as its export partner. Haiti's important export in the North American
market. Mexico, India and Hong Kong are also Haiti's next important trading partners
with export turnover reaching 46 million USD, 19.2 million USD and 14.2 million USD
respectively. These export destinations contribute significantly to the Haitian economy,
especially in sectors such as textiles, agricultural products and handicrafts, which are
integral to the country's economic performance.
2.2.2. Haiti - International Integration
Haiti has been a member of the World Trade Organization (WTO) since
January 30, 1996, and it was also a member of the General Agreement on Tariffs and
Trade (GATT) since January 1, 1950.
Membership in the WTO and GATT gives Haiti access to international markets.
Membership in these organizations helps Haiti reduce trade barriers, such as tariffs and
quotas that benefit Haitian exporters. At the same time, when participating in
international trade organizations, Haiti must commit to international trade standards and
the commercial environment. Haiti can therefore be considered a more attractive
destination for foreign investment. In addition, the WTO and GATT provide technical
assistance and capacity-building programs to help developing countries, such as Haiti,
improve their trade infrastructure, legal frameworks, and knowledge and skills. related to
commerce.
Haiti acceded to CARICOM in July 1999, negotiating a ten-year period as a
Least Developed Country to fully integrate into CARICOM. The legislation on the
Common External Tariff is still pending Parliament approval.

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 Haitian exports benefit from several free trade agreements (FTAs) and
preferential trade arrangements with various countries and regions:
For imports into the U.S. market from Haiti, Haiti benefits from several
preferential trade programs, including the Caribbean Basin Initiative (CBI), the
Caribbean Basin Trade Partnership Agreement (CBTPA), the Haitian Hemispheric
Opportunity through Partnership Encouragement Act II (HOPE II) and the HELP Acts,
and the Generalized System of Preferences (GSP), as outlined below.
Caribbean Basin Initiative (CBI)
The Caribbean Basin Initiative (CBI) remains an important element of U.S.
economic relations with Haiti. The CBI is intended to facilitate the development of stable
Caribbean Basin economies by providing beneficiary countries with duty-free access to
the U.S. market for most goods. Approximately 3,500 Haitian export products are eligible
for duty-free entry into the United States under the CBI. Products must be shipped
directly from Haiti to the United States to qualify for CBI preference. The products may
incorporate imported components as long as the goods exported to the United States are a
new merchandise product distinct from such components and the Haitian direct costs of
production (including domestic raw materials and those originating in other CBI
beneficiary countries, including Puerto Rico and the U.S. Virgin Islands) must amount to
at least 35 percent of the customs value. Materials of U.S. origin may be included up to a
maximum of 15 percent of its customs value. Eligible articles assembled or processed
from U.S. materials, components, or ingredients are accorded duty free access into the
United States regardless of whether such articles satisfy the 35 percent value-added
criterion.
Caribbean Basin Trade Partnership Act (CBTPA)
On October 2, 2000, Haiti was designated as a beneficiary of the CBTPA.
Congress passed the CBTPA as part of the Trade and Development Act of 2000. It is
designed to provide greater duty-free access to the U.S. market for Caribbean and Central
American nations. The CBTPA expands on the CBI program by allowing duty-free and
quota-free treatment for imports of certain apparel from the region, and by extending
NAFTA-equivalent tariff treatment to a number of other products previously excluded
from the CBI program.
The HOPE and HELP Acts
Partially in response to concerns over Haiti’s apparel parity issue, Congress
enacted the Haitian Hemispheric Opportunity through Partnership Encouragement
(HOPE) Act of 2006, which went into effect on March 19, 2007. Congress provided
HOPE in addition to other trade preferences under the General System of Preferences
(GSP), Caribbean Basin Economic Recovery Act (CBERA), and CBTPA. Eligibility

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criteria includes progress towards achieving a market-based economy, increasing
employment, enhancing the rule of law, eliminating barriers to U.S. trade, combating
corruption, and protecting internationally recognized human and worker rights.
The Haiti Economic Lift Program (HELP) Act helps create sustainable support
for Haiti’s economy by expanding tariff benefits for certain Haitian textile and apparel
exports to the United States. HELP also allows the expansion of duty-free access to the
U.S. market for Haitian textile and apparel exports and extends existing trade preference
programs for Haiti.
Generalized System of Preferences (GSP)
The U.S. Generalized System of Preferences (GSP), a program designed to
promote economic growth in the developing world, provides preferential duty-free
treatment for over 3,500 products from a wide range of designated beneficiary countries.
As a least-developed beneficiary developing country, Haiti qualifies for duty-free access
to the U.S. market for an additional 1,500 products, to make a total of 5,000 duty-free
eligible products under GSP.
The benefit of these trade agreements is that they give Haiti preferential access to
large and lucrative markets such as the United States and the European Union. Duty-free
access to these markets could boost exports of Haitian goods and create economic
opportunities. Besides, it also attracts foreign investors interested in taking advantage of
Haiti's duty-free rights to export products to the United States and EU.
In addition, Haiti also has free trade zones and industrial parks.
This is a geographical area where a special regime on customs duties and customs
controls, taxation, immigration, capital investment and foreign trade applies and where
domestic and foreign investors can provide services. , import, storage, production, export.
and re-export of goods. Free trade zones can be private sector or joint ventures, involving
public or private investors.
2.3. Cultural & Social
One of Haiti's greatest assets is its people.
The country's population of over 11 million is very young, with about 55% under
30 years old. People in Haiti are famous for being hard-working, motivated, flexible and
trainable. A multilingual workforce can be mobilized quickly to meet the needs of high-
growth sectors, such as BPO, tourism, garment manufacturing, agribusiness and
electronics manufacturing. The population is in need of jobs and has a strong desire to
work. The workforce is stable, with factory managers reporting low absenteeism (2%)
and turnover of 4 to 6% per year.
Literacy Rate

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 Haiti faces formidable social challenges, including high illiteracy rates,
widespread poverty, and significant brain drain. Illiteracy, which affects approximately
50% of the population, limits access to education and opportunity. Poverty rates of up to
80% highlight the economic hardships endured by many Haitians, while the migration of
college graduates to the United States has led to a loss of human capital.
The Government is currently engaged in a multi-year process to ensure there is a
publicly funded, free, well-managed education system for all children that provides
quality educational services and social services. This plan covers the entire education
system, from early childhood development to higher education, including public and non-
public schools.
Vocational training
To further enhance the skills of the workforce in various sectors, both the public
and private sectors are investing in vocational skills training. Initially, there were labor
training centers for fields such as textiles, tourism, and hotels to meet the growing needs
of the market.
2.4. Political environment
The country, which has still not recovered from the devastation of the 2010
earthquake and a hurricane six years later, has been spiraling even deeper into political
instability since the assassination of President Jovenel Moise almost two years ago.
The political crisis has escalated with the expiration of the terms of the country's
remaining 10 senators, leaving the nation without any democratically elected institutions.
The Senate was the last such institution, but it had dwindled to just 10 members due to
the failure to hold legislative elections in 2019. This situation is alarming, as it occurs in a
country already plagued by rising gang violence and instability.
Interim Prime Minister Ariel Henry, who assumed the role just days before
President Moise's assassination, faces a crisis of legitimacy. Some Haitian civil society
leaders have urged him to transfer power to an inclusive transitional government, while
Henry insists that new elections are needed to address the country's multiple crises.
However, organizing elections in the current environment of worsening instability and
widespread violence poses significant challenges.
Corruption is also a major concern, impacting the integrity of business dealings
and financial security. In 2008, Haiti was rated as the fourth most corrupt country
globally in Transparency International's Corruption Perception Index. By 2013, this
situation did not improve, with Haiti being identified as the most corrupt nation in the
Caribbean region and holding the 163rd position among 177 countries. In 2022,
according to Transparency International's Corruption Perceptions Index, Haiti received a
score of 17 on a scale that ranges from 0 (indicating high levels of corruption) to 100

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(representing a very clean, corruption-free environment). When looking at this score-
based ranking, Haiti was placed 171st among the 180 countries listed in the Index. In this
ranking, the first-ranked country is perceived to have the most honest and transparent
public sector.
In 2010, corruption in Haiti was characterized as being beyond the actions of just a
few dishonest officials or politicians. Instead, it is linked to organized crime, where
corrupt procurement deals were the result of collaboration and a system of racketeering
driven by corruption.
In summary, political instability and corruption in Haiti have a detrimental impact
on foreign investors' perception of the country. These challenges create a perception of
risk, uncertainty, and unreliability, making Haiti less attractive as an investment
destination.
2.5. Legal environment
The legal system of Haiti encourages commercial investment activities, attracting
foreign investors. Haiti's corporate tax rates and import tariffs are lower than the average
rates in Latin American and Caribbean countries.
The Haitian government does not impose discriminatory requirements on foreign
investors. For example, import and export policies are non-discriminatory and are not
based on nationality. Foreign firms are encouraged to participate in government-financed
development projects, and performance requirements are generally not imposed on them
unless specified in a contractual agreement. Foreign investors can also enter into joint
ventures with Haitian citizens, with share distribution being a private matter between the
parties. Foreign investors are allowed to have 100% ownership of a company or
subsidiary and enjoy all the rights and privileges granted under Haitian law. There are no
equity-to-debt ratio requirements, and accounting laws permit the use of tangible and
intangible assets for capitalization.
Haitian legislation offers legal safeguards for a range of intellectual property
rights, including copyrights, patents, industrial designs, trademarks, and business names.
It also addresses issues related to infringement, fraud, and unfair competition, imposing
penalties on individuals or businesses found guilty of such violations. Under the 2005
decree currently in effect in Haiti, the holder of a copyright has the authority to utilize
their creative works, as well as the option to safeguard or distribute them. This right
remains in force for the entire lifetime of the owner and extends for 60 years after their
demise.
Although the Haitian government's economic policies favor foreign direct
investment, they do not effectively create a favorable environment for foreign direct
investment. There has been a notable decrease in much-needed foreign direct investment

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(FDI) in Haiti. The UN Conference on Trade and Development World Investment Report
for 2020 revealed that FDI inflows into Haiti declined from $105 million in 2018 to $75
million in 2019. Despite passing anti-money laundering and anti-corruption laws to
ensure that Haiti’s legislation corresponds with international standards, the government
has not strictly followed the legal framework of these laws and has also failed to
incentivize investment in Haiti.
2.6. Technology
In 2010, Haiti's technological landscape was in its early stages of development.
The mobile market had a mere 20% penetration rate among the population, and
household Internet usage was less than 1%. Despite these modest figures, there was
reason for optimism, with an annual subscriber growth rate of around 20%, signaling a
growing interest in digital connectivity. In this emerging landscape, the mobile market
was primarily under the control of two major players, Digicel and Voila, who held
substantial market shares. However, the devastating earthquake in Haiti prompted a shift
in the telecommunications sector. As other companies were compelled to invest in
infrastructure to support the recovery efforts, the competition intensified, leading to a
more dynamic and competitive technological environment in the country.
As of 2023, Haiti's digital landscape has seen significant growth and
transformation compared to its state in 2010. According to a recent study by the Digital
Report, Haiti had 4.53 million internet users at the beginning of the year, with an internet
penetration rate of 38.9 percent. In terms of mobile connectivity, there were a total of
9.39 million cellular mobile connections in Haiti, covering 80.5 percent of the total
population. This widespread mobile adoption indicates the central role that mobile
devices play in connecting Haitians to the digital world. These developments mark a
growing connectivity trend within the country.
Notably, Haiti now boasts four major mobile network operators (MNOs): Digicel,
Natcom, Voila, and Haitel. This increased competition among MNOs has likely
contributed to improved services, affordability, and accessibility for the population,
further fueling the growth of the digital ecosystem in Haiti.
Conclusion: From a business perspective, Viettel saw the opportunities in Haiti.
The once enticing markets became too hard to gain profit since there had been so many
competitors. Therefore, for impoverished countries like Haiti where investors often
believe that it was very challenging to find success, are the opportunities for Viettel.
The leaders of Viettel have identified potential in Haiti which lies in the high
demand for telecommunications services. Only 35% of the population uses services at
high rates, primarily in major cities. Furthermore, the gap between telecommunications

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companies has narrowed as many other firms have to rebuild infrastructure, while
Viettel's potential lies in low prices, offering rates as low as 3 cents per minute.
Having achieved great success in two markets, Laos and Cambodia, as the top
investor in the telecommunications industry, Viettel has gained valuable experience in
international investments. So, despite acknowledging the challenges, Viettel had a high
chance of growth in the Haiti market.
3. Potential market for this product or service
3.1. Overview of the telecommunications industry in Haiti
Regarding mobile service, Haiti's mobile service market has only really begun to
develop since 2006 when Digicel launched service provision. The average annual
subscriber growth rate is about 20% cumulatively. By the end of 2010, there were about
3.5 - 4 million subscribers on the system. The above number of subscribers mainly
belonged to the two networks Digicel and Voila.
Regarding the Internet service, the current total number of Internet subscribers in
Haiti is only about 17 thousand subscribers, the penetration rate of Internet services in
Haiti is still low, less than 1% (of the total number of households). The Haitian market in
recent years has seen a very high growth rate in 4G Data subscriptions as the need for
network access to serve customers' personal needs increases rapidly, similar to the
development trend in the world.
3.2. SWOT analysis
The SWOT model is derived from the four words strengths, weaknesses,
opportunities, and threats, and it provides a tool to help analyze strategy and review and
assess the risks and orientation of a company or a business project. We use the SWOT
model to help Natcom (Viettel) with business planning, strategy development, competitor
evaluation:
STRENGTHS (S) WEAKNESSES (W)

- Viettel is a leading enterprise in the - Viettel has participated in business

telecommunications sector in Vietnam. investment in many fields
This means that Viettel has significant (telecommunications, information
financial resources, competitive technology, import-export, real
advantages, and a wide network of estate...) resulting in a lack of
coverage. concentration on the investment of
- Viettel has a team of highly qualified, capital and management.
proficient in foreign languages, - Limitations in human resources in the
professional and skillful young staff. host country as people are at a low
They are also eager to work in Viettel's educational level and lack skills.

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 international markets, thus providing - Viettel lack of experience in operating
Viettel with a significant amount of international business far away from
labor. headquarters like Haiti. This means
- Viettel has done successful Viettel facing difficulties in logistics,
international business in Laos and management...
Cambodia markets. Therefore, it has
experience in developing the
telecommunications market from poor,
developing countries

OPPORTUNITIES (O) THREATS (T)

- The Vietnamese government is - Haiti is a poor country, the economic

encouraging international business. As and social environment is unstable, and
Vietnamese govenrment provide there are many natural disasters. This
support and many funding programs means when Viettel have to bear many
for international business such as the challenges, risks of low profit and high
case of Viettel. operating costs.
- Mobile rates in Haiti are currently - Strong opponents and many years of
about 10 cents/minute while Viettel experience in Haiti: The major
can provide cheaper mobile service at telecommunications operators are very
only 3 cents/minute. strong and have plenty years of
- Many Haitians live abroad. Therefore, experience doing telecommunications
the need for communication with business in the Haitian market,
foreign countries and calling from accounting for 70% of the total number
abroad is high for Haitians. of existing subscribers in Haiti.
- Telecommunications infrastructure was
seriously destroyed after the 2010
earthquake. This indicates that Viettel
might face high risk of natural disasters
like earthquakes when operating in
Haiti.
- Differences in consumer culture and
working culture between Vietnam and
Haiti. The issue of customs and
traditions in the host country is one of
Viettel's difficult issues when

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 implementing operations. Therefore, it
is also a challenge for Viettel to adapt
and satisfy customers in the host
country.

3.3. Porter’s Five Forces

Porter's Five Forces is a model that identifies and analyzes five competitive forces
that shape every industry and helps determine an industry's weaknesses and strengths.
The model includes competitors in the industry, threats of new entrants, power of
suppliers, power of customers, threats of substitutes.
3.3.1. Competitors in the Industry
Before 2011, Haiti had 3 telecommunications enterprises sharing market share:
Teleco, Digicel and Voila. In particular, Teleco Company is an enterprise with a very
small market share, continuously losing money and being attracted by two competitors.
By 2010, Teleco sold all equipment infrastructure to Viettel, officially withdrawing from
the market. Haitian telecommunications.
When Viettel started services in 2011, there were three telecommunications
companies sharing the telecommunications market share: Natcom, Digicel and Voila. At
the end of 2011, rival Digicel had 62.5% market share, equivalent to 2.5 million
subscribers, Voila had 25% market share, equivalent to 800,000 subscribers, and Natcom
had 410,000 subscribers, equivalent to 12.5% market share. Competitors in the market,
Digicel and Voila, are both businesses that have been doing business for a long time in
the Haitian market as well as in the Americas (Voila entered the market in 1998, Digicel
entered the market in 2005), so They really understood the market and the culture. In
October 2012, Digicel merged with Voila. On October 23, 2012, Digicel officially
announced the termination of Voila sim services. From now on, the competition in
mobile information in Haiti is a race between two companies: Digicel and Natcom
Company - a joint venture between Viettel Military Telecommunications Group and the
Central Bank of Haiti.
3.3.2. Threats of New Entrants
This part illustrates the threats of new entrants when a telecommunication
particularly Viettel would face when they do telecommunications business in a Haiti. The
telecommunications market demands substantial investments in maintenance, updating,
and extension of networks and services; moreover, obtaining the license for supplying
utilities is the significant financial obstruction that newcomers barely go through if they
do not have enough economic resources. The minor risks of entry and supplement reduce

14
the attractiveness of the telecommunication industry unless a company has sound
financial, technological, and human resources.
The tendency of consolidation in the telecommunications sector is widespread and,
probably, going to expand with such examples as the acquisition of Digicel merged with
Voila. These industry mergers create additional barriers to entry for the new companies.
Besides that, despite the fact that Haiti has an open economy in theory, there are
significant barriers to trade and foreign investment in the nation, such as gang violence,
political unrest, corruption, and onerous bureaucracy. So, the threats of new entrants for
telecommunication industry in Haiti is relatively low.
3.3.3. Power of Suppliers
The operation of telecoms information services necessitates a large capital
investment in equipment, in other words the need to determine the suitable and most
affordable supplier. In a particular case of Haiti market, there are not many suppliers in
this industry. Furthermore, currently, Viettel is one of the companies in the world that
produces telecommunications equipment according to the Ministry of Information and
Communications. Thus, Viettel can provide inputs for its telecommunications services
without depending on suppliers in the market, this is the reason why the power of
suppliers in the telecommunications industry in general and the case of Viettel in
particular is quite low.
3.3.4. Power of Customers
Haiti has a total of 2.1 million households (ratio of urban to rural households:
43/57) is a market with high demand for telecommunications while there are only two
telecommunication providers (Natcom, Digicel). This means the customers cannot switch
to new, cheaper competitors and cannot drive down prices. As a result, the bargain power
of customers in Haiti is relatively low.
3.3.5. Threat of Substitutes
Telecommunication services are distinctive. Therefore, there are little to no threats
of substitute products, especially in Haiti. This is mainly because industry is highly
dependent on technology and innovation.
3.4. Conclusion
After analyzing the Porter’s Five Forces Model and SWOT analysis, we can see
the potential of the market for Viettel’s international business in Haiti.
Firstly, the Vietnamese government is encouraging domestic enterprises with
economic potential to expand investment and cooperation abroad to expand market share
and gradually penetrate the international market after Vietnam joins the WTO. Although
the telecommunications industry has developed very strongly, there are still many
opportunities for Viettel, especially in some poor and developing countries like Haiti.

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 Secondly, mobile phone rates for both domestic and international travel in Haiti
are currently about 10 cents per minute, while Viettel can provide the market with the
rate of only 3 cents per minute - much cheaper, so the opportunity here is still very
promising for Viettel.
Thirdly, Viettel came to Telecom (the unit in which Viettel would buy 60% of the
capital to establish a joint venture) when they were desperating. More than 80% of the
infrastructure was completely destroyed after the 2010 earthquake. Even before the
earthquake happened, Teleco lost at least $1 million per month, and this situation has
lasted since 2001. Teleco only has about 40,000 landline phone subscribers and is
gradually decreasing. This means Viettel has a high chance of success when investing in
Haiti because they inherit the subscribers of Telecom.
Also, the population of Haiti abroad is enormous. According to information from
the Haitian Diaspora Federation, currently, about 1/3 of the world's Haitian population
lives outside Haiti. Most of the population is concentrated in the US—about 2.5 million
people. There are also Haitians in other countries, including Canada, Africa, Europe,...
Therefore, the need for communication with foreign countries and calling from abroad is
high for Haitians, which is a good opportunity for developing Viettel's international
telecommunications segment in Haiti.
4. Absolute or comparative advantages
4.1. Absolute Advantage: Growing Population
Certainly, an absolute advantage typically refers to a fundamental attribute or
resource that a country or entity possesses, giving it an inherent advantage over others in
a particular industry or sector. In the context of investing in telecommunications services,
a growing population can be considered an absolute advantage.
Haiti is an emerging market with a growing population, which provides an
opportunity for telecom companies to tap into a relatively untapped customer base. The
demand for telecommunications services is likely to increase as more people in Haiti gain
access to mobile phones and the internet. A growing population serves as an absolute
advantage in the context of Viettel investing in Haiti telecommunications services
because it offers a larger market size, sustained demand, demographic dividends,
economic impact, and a long-term growth trajectory. These attributes make it a
fundamental and inherent advantage for telecom companies, providing them with a
significant edge in serving a continually expanding customer base.
Market Size:
Haiti's growing population represents a substantial market size for telecom
services. As more people are born and enter the workforce, the potential customer base

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for mobile and internet services expands. This creates an opportunity for telecom
companies to capture a larger share of the market.
Demand:
A growing population in Haiti naturally leads to a higher demand for vital services
such as mobile and telecommunication services. As more people require these services
for communication, education, business, and daily activities, the telecommunications
industry is facing a notable surge in demand. Consequently, this sector plays a pivotal
role in catering to the country's demographic expansion, thereby expanding its own reach
and significance.
Sustainable Growth:
A growing population represents a long-term and sustainable advantage. It's not a
transient or easily replicable resource. As the population continues to grow, so does the
market for reliable communication and internet services. This steady and predictable
growth can be a solid foundation for business planning and investment.
Demographic Dividends:
A growing, youthful population can be seen as a demographic dividend. Younger
populations often have a higher propensity to adopt new technologies, including mobile
and internet services, making them a prime target market. This demographic can be early
adopters and long-term users of these services, providing sustainable revenue for telecom
companies.
Access to Information and Education:
Telecommunications services, particularly internet access, play a vital role in
providing access to information and educational resources. In a growing population,
ensuring access to educational content, information, healthcare, and government services
becomes increasingly important for personal and professional development.
In summary, the advantage of a "Growing Population" in Haiti provides a
compelling rationale for investing in telecommunications services. It offers a significant
market size, increasing connectivity demands, demographic dividends, economic growth
opportunities, and the ability to support education, businesses, and government services.
This advantage aligns with the long-term vision of providing essential services to a larger
and more connected population, making it a suitable and strategic investment for telecom
companies like Viettel Corporation.
4.2. Competitive Advantage
4.2.1. Limited Competition
Although at the time of investing in Haiti, the market already had 3
telecommunications enterprises holding a certain market share. However, these
competitors are in a difficult situation due to the 2011 earthquake in Haiti, which

17
seriously destroyed physical infrastructure, including the telecommunications system,
requiring a focus on construction resources to rebuild a synchronous infrastructure
system. While Viettel had advantages in terms of capital and technology, it also agreed to
cooperate with one of the three telecommunications companies in Haiti - Teleco
enterprise, which was having difficulties at that time. In general, in the year 2011, the
mobile and telecommunications service market still had Limited Competition and was a
favorable condition for Viettel to enter the market with relative ease, secure an early
mover advantage, influence market dynamics, build a strong brand presence, and
potentially enjoy more pricing power. This advantage is suitable for investment because
it provides a conducive environment for establishing a significant and profitable presence
in the market.
Market Entry Opportunity:
Limited competition in Haiti's telecommunications market presents a unique
market entry opportunity for Viettel. In a highly competitive market, new entrants often
face significant barriers to entry, including established competitors with strong market
shares. The absence of dominant players in Haiti allows Viettel to penetrate and make an
impact. Easier penetration can roll out its services and infrastructure across the country
without facing intense resistance from existing competitors. This not only reduces the
cost and complexity of market penetration but also accelerates the pace at which the
company can provide services to underserved areas.
Early Mover Advantage:
Being one of the first major foreign players in a relatively underdeveloped market
allows Viettel to secure an early mover advantage. This entails the ability to shape
customer preferences, set service quality standards, and establish brand recognition
before other competitors enter the market. This positions them as a leader in the market.
Profitable Pricing Strategies:
With fewer competitors, Viettel has more flexibility in pricing its services. It can
set prices that are both competitive and profitable, as there are fewer alternatives for
consumers. This enables the company to capture market share without compromising
profitability.
Customized Offerings:
Limited competition allows Viettel to customize its services to meet the specific
needs and preferences of the Haitian population. This tailoring of offerings can result in
more effective and appealing solutions, driving customer satisfaction and loyalty.
In summary, the necessity of limited competition as an advantage for investing in
telecommunications services in Haiti is rooted in the unique market dynamics it creates.
It offers a low-entry barrier, first-mover opportunities, regulatory influence, and the

18
ability to develop the market according to the company's strategic goals. These conditions
are highly suitable for Viettel to establish a significant presence and thrive in the Haitian
telecommunications sector.
4.2.2. Government Support
Haiti's government may offer tax benefits and other incentives to encourage
foreign companies to invest in the telecommunications sector, which can include reduced
tax rates, tax holidays, customs duty exemptions, and other incentives.
Government support is a critical advantage that can make Haiti a promising
destination for Viettel to invest in telecommunications services, including mobile and
internet services. It helps in reducing operational costs, navigating regulations, ensuring
infrastructure development, enhancing the quality of services, expanding the customer
base, and contributing to the economic growth and sustainability of the
telecommunications market. These factors collectively make government support a
compelling reason for Viettel to invest in telecommunications in Haiti.
Regulatory Assistance:
Regulatory compliance is a crucial aspect of the telecommunications industry.
Government support in terms of regulatory assistance can help Viettel navigate the
complex regulatory landscape in Haiti, ensuring that it complies with local laws and
regulations. This is essential for avoiding legal and operational challenges.
Tax Breaks and Incentives:
Tax incentives reduce the operational costs of setting up and running a
telecommunications network for Viettel, making the investment more financially viable.
This financial advantage allows the company to allocate resources more effectively,
leading to better infrastructure development and improved services. Tax incentives can
lead to more competitive pricing for services. Lower operational costs due to tax breaks
allow Viettel to offer competitive rates, making their services more accessible and
appealing to consumers.
Infrastructure Development:
Infrastructure development is foundational for building a robust
telecommunications network. Government support for infrastructure development,
including roads and power supply, accelerates the deployment of telecommunications
services. This necessity enhances the input, allowing Viettel to establish its network more
quickly and efficiently.
In conclusion, government support in Haiti offers a favorable environment for
Viettel to invest in telecommunications services. It benefits both the input, by reducing
costs and providing assistance, and the output, by expanding the customer base,
improving service quality, and contributing to economic growth. The interplay of these

19
factors makes the advantage of government support highly suitable for Viettel's
investment in the Haitian telecommunications sector.
4.2.3. Labor Cost
The characteristics of mobile and internet services align with Haiti's low labor
cost, making it a comparative advantage and suitable for Viettel to invest in
communication services in Haiti.
Network Infrastructure Development and Maintenance:
Mobile and internet services require a robust network infrastructure, including cell
towers, data centers, and fiber-optic cables. Haiti's low labor costs can significantly
reduce the expenses related to building and maintaining this infrastructure.
Viettel can allocate more resources to expand network coverage, enhance service
quality, and invest in the latest technologies while keeping costs under control. This is
crucial for providing reliable and high-speed internet and mobile services to consumers.
Customer Support and Service Operations:
Effective customer support, billing, and technical assistance are essential for
mobile and internet services. Lower labor costs in Haiti can result in cost-efficient
staffing for these operations.
Viettel can establish a well-staffed and responsive customer support team,
providing round-the-clock assistance to customers. This enhances the overall customer
experience, which is a critical factor in the success of communication services.
Software Development and Innovation:
Mobile and internet services rely on software applications and platforms to deliver
services to customers. Haiti's lower labor costs can lead to cost savings in software
development and maintenance.
Viettel can invest in developing and continually improving user-friendly mobile
apps and online platforms tailored to the local market's needs. This flexibility in software
development is crucial for adapting to evolving consumer preferences and technology
advancements.
To conclude, the characteristics of mobile and internet services align well with
Haiti's low labor cost, providing a comparative advantage for Viettel. This cost advantage
can be leveraged to invest in network infrastructure, customer support, software
development, while maintaining cost-effectiveness. However, Viettel must maintain
stringent quality standards, invest in workforce training, navigate the regulatory
environment, and be prepared for potential challenges related to labor stability and
competitive wage pressures as the market develops.
5. Recommendations to promote Viettel's business activities in Haiti

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 Based on the assessment of successes and limitations of business activities of
Viettel in Haiti above, following recommendations would highly be suggested to enhance
the effectiveness and efficiency of Viettel’s international market activities along with
improving current impediments of NATCOM with the aim of becoming No.1
telecommunication services provider.
Focus on quality of human resources and attract talents in Haiti:
Natcom needs to focus on investing in training local Haitian employees with
certain qualifications consistent with the company's technical and technological
requirements and characteristics (without having to waste time transferring people from
Vietnam, while creating jobs for technology workers in Haiti. At the same time, in the
process of working together, NATCOM can teach local employees Vietnamese to
communicate more easily) thereby gradually giving important positions to Haitian
employees in implementing business programs.
To attract good employees, Natcom should develop special policies to attract
Haitian talents to work at Natcom, such as preferential policies on salary, work, and
social welfare... Attracting highly qualified personnel will help Natcom reduce training
time, become familiar with the system, and increase employee efficiency. Especially if
Natcom attract students who have studied in the US, they can apply American technology
and management lessons to Natcom's business activities.
In short, to reduce costs and promote empowerment of Haitian employees, Viettel
needs to limit bringing employees from Vietnam to work. Carry out a gradual transfer of
simple, easy-to-perform jobs to Haitian employees, leaving only a few key personnel to
maintain business strategies, aiming to let local people take ownership. This both helps
reduce personnel costs and retain talented people for Natcom. Labor assessment also
plays an important role in developing training plans to carry out Viettel's production,
business and development tasks. There should be detailed criteria, suitable to business
needs.
Identify the target customers to maximize market share:
Currently, Natcom is ranked 2nd and 5% market share less than its largest
competitor. Identifying right customers plays a very important role in
telecommunications business to offer appropriate products and services. Now, when
telecommunications services have begun to saturate in Hali, Natcom needs to deeply
analyze the customer base in different regions to take full advantage of products and
services for each individual at specific areas.
For areas with relatively stable development such as provinces and large cities,
Natcom needs to pay attention to competitive services, the ability to bring high revenue
and high demand such as mobile services, high-speed internet, digital television, focusing

21
on promoting new services such as OTT services, VAS services that increase revenue.
For markets in remote areas, it is necessary to promote the development of services are
traditionally mobile and fixed.
The current investment strategy in low-income residential areas has begun to
saturate, therefore, Natcom should aim to develop rich and loyal customers to expand the
customer network, increase communication efficiency and business. Natcom needs to
focus on coverage and good quality in rich residential areas, focusing on quality to feed
quantity: build customer loyalty programs, point accumulation programs, and reward
programs to boost consumer ARPU of the rich customers class and loyal customers.
Strengthening distribution channels and infrastructure:
To maintain distribution channels in remote areas, Natcom needs to develop
mechanisms and policies to support agents and sales points for better development. Some
policies that can be applied include Support door-to-door delivery to agents and points of
sale in difficult areas with limited means of transportation; support batteries for dealers
and points of sale to charge batteries for customers in areas without electricity.
Organizing all these distribution channels will help agents and points of sale be more
active with Natcom's products and services, helping to boost business efficiency.
Viettel needs to increase investment in infrastructure construction. This is Viettel's
strength compared to competitors and is also an opportunity to deploy more
telecommunications business activities on new technology platforms (such as 5G) to
shorten Viettel's gap with other companies.
Improving international business:
The number of Haitians abroad is still large, Viettel should continue to promote
policies and international packages for foreigners when calling to Haiti and recharging
subscribers in Haiti. Viettel should build bundle packages for both voice and recharge to
promote consumption of this customer group.
Improve customer service:
Customer service includes 3 stages: pre-sales, sales and post-sales activities. To
improve customer service, businesses should focus on all three sales stages. In the pre-
sales step, businesses must increase public relations activities focusing on new products
and services. The purpose of activities in the process of selling a service or product to a
customer is to provide the fastest and most convenient service to customers. The next
step is the activities after selling to the right customers in the short term. To achieve this
goal, the intermediate stages need to be reduced. Well-organized after-sales and customer
care activities will create a good impression and help customers return to Natcom.
Natcom needs to set up hotline centers and phone numbers to answer customer questions,
shorten the time for repair and warranty services to ensure the fastest and most

22
convenient customer service. In addition, it is necessary to promote self-care channels for
customers to easily access and respond like on Natcom's homepage or build self-care
applications for customers to learn about how they spend on telecommunications service,
helping to reduce the number of connections with the customer care department, thereby
reducing costs for after-sales service.
Diversity of services:
In the current context of globalization, to survive and develop in foreign markets,
Viettel must diversify products and services to meet the requirements of all customer
groups. Firstly, it can be done by applying new technology to provide higher quality
services to customers. Second, Viettel can apply value-added services so that their
customers can enjoy more benefits. Natcom should continue to provide traditional
services such as channel rental, transmission rental and at the same time deploy new
services such as cable TV, digital content, games, call center rental, VAS services...
Focus on building both fixed and mobile bundle packages to attract customers, not only
providing telecommunications services to customers, but also simple versions that help
each customer's different needs. For example, instead of selling mobile products
internationally, Natcom sells the best solutions for customers to contact relatives abroad,
instead of selling television services, Natcom sells solutions for customers to access
communication channels through television... Thus, Natcom's products will not be limited
to individual products, but will be solution packages that meet customer needs.
Develop fair pricing policies:
Natcom should go deeper into implementing niche packages and niche promotions
according to user behavior, paying attention to each individual customer, promoting old
subscription because they are the main revenue-generating subscribers for Natcom.
Information technology in the world has developed rapidly, with many suppliers
using new technologies based on big data to understand customer behavior so that they
can make reasonable decisions and respond promptly with the market. Natcom should
strengthen updating new technologies to offer affordable business policies to each
customer group, promoting higher consumption of each customer.
In the process of developing appropriate pricing policies, Viettel needs to pay
attention to the following 3 main issues: (1) factors affecting product and service prices
such as inputs, supply and demand relationships, and technology. (2) International
competition and exchange rates, (3) determining business operating costs, market surveys
abroad and find the best suppliers for equipment at the most reasonable prices, research
and apply new technology to cut purchasing costs and lower product and service prices,
as a result, Natcom can determine prices suitable for customers' ability to pay.

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Haiti - protecting intellectual property. International Trade Administration | Trade.gov. (n.d.).

https://www.trade.gov/country-commercial-guides/haiti-protecting-intellectual-property

Haiti. Transparency.org. (n.d.). https://www.transparency.org/en/countries/haiti

Country private sector diagnostic creating markets in Haiti. (n.d.).

https://www.ifc.org/content/dam/ifc/doc/mgrt/cpsd-haiti.pdf

Development, U. S. A. for I. (n.d.). U.S. Agency for International Development.

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Pike, J. (n.d.). Military. Haiti - Corruption.

https://www.globalsecurity.org/military/world/haiti/corruption.htm

Tackling corruption in Haiti is possible. here’s how - AEI. (n.d.).

https://www.aei.org/articles/tackling-corruption-in-haiti-is-possible-heres-how/

U.S. Department of State. (2022, July 28). Haiti - United States Department of State. U.S.
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Williams, L. (2021, October 30). The state of play: FDI in Haiti. Investment Monitor.
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