Nothing but a ‘G’ thing: VNPT to become VNPTG next year

9 Dec 2005

The Vietnamese government has given the green light to a plan to establish a new state-owned telecoms group, the Vietnam Post and Telecommunications Group (VNPTG) in early 2006. The new public entity will succeed Vietnam Post and Telecommunications (VNPT), which has been working towards privatising 41 of its subsidiaries. To date, 26 of these units have been spun off and preparations are under way for the remaining 15. The new group will retain a 50% stake in many of VNPT’s fringe divisions including equipment manufacturing, software development, hardware installation, tourism, insurance and provision of value added services.

VNPT is the incumbent government-owned operator in Vietnam, and has been in existence since 1995 when it was spun off from regulatory body the DGPT (forerunner of the Ministry of Posts and Telematics). Until 2003 it had sole control over the nation’s fixed line infrastructure, but lost its monopoly on international leased lines in November that year when rival Viettel entered the sector. Although it is the national postal services provider, telecoms services accounted for VND26.6 trillion (USD1.68 billion) of its VND30.5 trillion turnover in 2004, up 19.8% over the previous year.

Vietnam, VNPT-Vinaphone