To advance this initiative, the two companies entered into a Business Cooperation Contract on March 10. Under this agreement, VNPT and KDDI aim to deliver a new mobile telecommunications service primarily targeting young consumers and digital-native users in Vietnam, leveraging KDDI's operational expertise gained through its online-only mobile brand "povo" in Japan, alongside VNPT's domestic telecommunications infrastructure, brand presence, and extensive customer touchpoints.

In Vietnam, the rapid adoption of smartphones and mobile communications has been accompanied by increasing diversification in consumer preferences and usage patterns. Demand among younger generations is growing for fully online experiences covering the entire customer journey–from contract sign-up to service usage and customer support. Expectations are rising for flexible pricing models, simple and intuitive user experiences, and services that are designed with online channels at their core.

In Japan, KDDI launched its online-only mobile brand "povo" in 2021. In collaboration with Singapore-based Circles, which has extensive expertise in online mobile services, KDDI developed the system architecture for the service. Operated by KDDI Digital Life Corporation, "povo" has established a new model for mobile communications by enabling customers to complete contracts, data top-ups, and support digitally, supported by agile service development and flexible pricing plans. By positioning online platforms and mobile applications as its primary customer touchpoints, "povo" has gained strong support, particularly among younger and digital-native users.

VNPT and KDDI believe that demand for online-centred telecommunications services will continue to grow in Vietnam. By combining VNPT's robust domestic telecommunications infrastructure and customer reach with KDDI's know-how from operating "povo" in Japan, the two companies aim to create new value and deliver innovative mobile services to Vietnamese customers.

VNPT will encourage the development of the new sub-brand business by leveraging its telecommunications business infrastructure, brand strength, and customer touchpoints within Vietnam. Meanwhile, KDDI together with Circles will contribute its expertise in digital telecommunications services developed through the launch and operation of the online-only brand "povo," providing know-how in the areas of service design, customer experience, digital marketing, and platforms.