Ruchira Hewage, the Director at Vietnamobile, is no stranger to the complexities of the global telecommunications sector. With nearly two decades of experience across several regions, he has developed a sharp understanding of market dynamics, regulatory challenges, and technological innovations. Since taking the reins at Vietnamobile, he has guided the company through a transformative journey, leveraging his global experience to overcome the unique challenges of Vietnam’s heavily regulated telecom market.
Vietnam’s telecommunications sector presents a highly regulated and competitive landscape. Ruchira identifies the regulatory environment as one of the greatest challenges for operators like Vietnamobile. “Vietnam’s telecom market is tightly controlled by the government, with the state owning or controlling three of the four largest operators,” he explains. This dominance creates barriers for foreign investors and solo operators, limiting network expansion and strategic partnerships. Furthermore, spectrum allocation remains a persistent issue. “Operators require adequate spectrum to offer high-quality services, especially for 4G and 5G technologies. However, the high licensing fees and delays in the decision-making and auctioning processes have complicated things for foreign-owned operators like us.”
Despite these challenges, Ruchira’s strategic vision has allowed Vietnamobile to navigate this complex landscape effectively. Since joining the company in 2018, he has led a shift in focus toward the international segment of the business, which operates under less stringent regulatory oversight. “Rather than competing in the oversaturated local market, we shifted focus to our international business,” he notes. This decision has been instrumental in driving revenue growth, with the international segment growing from just 4% of total revenue in 2018 to between 25-30% today. This strategy has also contributed to Vietnamobile’s financial turnaround. After 12 years of negative EBITDA, the company has been EBITDA-positive for five consecutive years.
As technology continues to reshape the telecommunications landscape globally, Vietnam is no exception. Ruchira views technologies like 5G, IoT, and digital services as critical components of future growth, but he acknowledges that Vietnam’s progress has been slower than expected, particularly in the rollout of 5G. “Vietnam is still in the early stages of 5G deployment, despite strong government support for 5G as part of its digital transformation strategy,” he says. Delays in spectrum allocation have hampered the rollout, and in some areas, the need for better 3G and 4G coverage takes precedence over 5G.
However, he is optimistic about the potential of IoT (Internet of Things) technologies, which are already gaining traction in various sectors across Vietnam. “IoT is being increasingly adopted in areas like smart cities, agriculture, manufacturing, healthcare, and logistics,” he explains. In major urban centers such as Ho Chi Minh City and Hanoi, IoT is transforming traffic management, waste management, and public safety. In Vietnam’s vast agricultural sector, IoT is being applied to precision farming, helping farmers make data-driven decisions to improve productivity and efficiency.
The Vietnamese government has also recognized the importance of digitalization across sectors, implementing initiatives to promote e-government, digital banking, fintech, and SME digitalization. However, as he points out, challenges remain. “The digital skills gap, cybersecurity concerns, and infrastructure development issues are still significant hurdles to achieving full digital transformation,” he notes. Despite these challenges, Vietnam is making strides in adopting digital services, and Ruchira sees immense potential for growth in these areas.
Ruchira is not one to shy away from taking calculated risks, a trait that has set him apart as a leader in the telecom industry. “I consider myself a risk-seeking leader, both in my professional and personal life,” he says. His willingness to challenge conventional thinking has led to groundbreaking results for Vietnamobile. One of the most striking examples of this is his decision to overhaul the company’s approach to enterprise messaging services in 2018.
At the time, Vietnamobile was offering low-priced messaging tariffs to remain competitive, especially as over-the-top (OTT) services like WhatsApp, Zalo and Viber began to erode traditional telco revenues. “Most operators were scared of OTT and reacted by lowering prices to sustain volumes,” Ruchira recalls. But he saw an opportunity where others saw a threat. “I didn’t agree with the race to the bottom on pricing. Instead, we increased tariffs by almost 100%, while simultaneously enhancing the quality of service.” This included the adoption of advanced technologies to reduce fraud and leakage, ensuring enterprises received higher service levels.
The results were remarkable. By offering a premium service at a higher price, Vietnamobile was able to increase revenues significantly. “Enterprises were willing to pay more because we provided better value, and today we continue to see 20% year-on-year growth in this sector,” Ruchira shares. This bold decision not only strengthened Vietnamobile’s position in the enterprise messaging market but also proved that innovation often requires the courage to challenge industry norms.
Having spent the majority of his career working as an expatriate in diverse international markets, he is well-versed in the art of adaptability. His ability to connect with local communities and integrate into foreign cultures has been key to his success. “14 out of my 19 years in the telecom industry have been spent working overseas,” he says. While working as an expatriate can be challenging, Ruchira views it as an opportunity to immerse himself in new cultures and gain the support of his teams. “To be a successful leader in a foreign land, you have to become a local,” he emphasizes.
Ruchira’s approach to leadership goes beyond business strategy—it’s about building relationships and trust with local teams. “I make it a point to learn the language, embrace the culture, and even follow local customs and religions,” he says. His deep connection with the local community in Vietnam has earned him a unique reputation. “My fellow Vietnamese often tell me I’m more local than they are,” he laughs. This ability to blend into diverse environments has not only made him an effective leader but has also fostered a culture of unity and mutual respect within his teams.
As Vietnamobile continues to evolve, Ruchira remains focused on driving the company toward further growth and success. Despite the challenges posed by Vietnam’s regulatory environment and the slow pace of 5G development, he is confident in the company’s ability to adapt and thrive. His leadership is marked by a combination of bold, risk-taking innovation and a deep understanding of the local market, a rare blend that has set Vietnamobile apart from its competitors.
Looking ahead, he sees enormous potential for growth in the areas of digital services, IoT, and enterprise solutions. “Vietnam is undergoing a rapid digital transformation, and there is still so much untapped potential,” he notes. With Ruchira at the helm, Vietnamobile is well-positioned to capitalize on these opportunities and continue its upward trajectory.