EVN Telecom officially handed over to Viettel

11 May 2012

Vietnamese military-run company Viettel Corporation has officially taken control of the telecoms unit of state-owned utility company Electricity of Vietnam (EVN), local press reported. EVN Telecom and its five member companies have signed documents to hand over their assets to Viettel, after Prime Minister Nguyen Tan Dung signed a decision to allow the transfer of the struggling operator to the military-owned firm on 1 January 2012. EVN Telecom generated turnover of around VND2.43 trillion (USD114 million) in 2011, just 62.7% of its target for the year, amid fierce competition in the market that led to a sharp decline in voice telephony rates. As previously reported by CommsUpdate, Viettel made moves to acquire EVN Telecom in October 2011, shortly after rival Hanoi Telecom Company (HTC) submitted a proposal to the government to purchase the indebted operator’s network infrastructure. A previous attempt to sell a 49% stake in EVN Telecom to the Corporation for Financing and Promoting Technology (FPT) fell apart earlier last year, after FPT decided to pull out of the deal three months after it was approved by the government.

Vietnam, EVN Telecom, Viettel Telecom