Vietnamese telecoms operator EVN Telecom is currently finalising the necessary procedures for its privatisation in September this year. At present, EVN is wholly owned by the Electricity Telecommunication Company, part of state-owned utility Electricity of Vietnam (EVN). According to a report by local news source VietNamNet Bridge, the firm will maintain state capital and sell shares to strategic investors, staff and outside investors. Foreign investors must meet EVN Telecom’s conditions of experience in the telecoms arena, including the construction of 3G networks. The report adds that two unnamed investors from Singapore and Malaysia have offered to become EVN Telecom’s strategic partner.
If EVN completes the process in September as planned, it will become the country’s first privatised telecoms company; cellcos Viettel and MobiFone were approved for privatisation as far back as 2005, but they have not yet completed the process. Instead, the companies have become ‘one-member limited liability companies’ under the new Business Law, which came into force on 1 July 2010. The law dictates that state enterprises that have not yet issued shares must transform into one-member limited liability companies until privatisation takes place.