Vinaphone, MobiFone merger plan awaiting government approval

15 Jun 2012

Vietnamese mobile operators Vinaphone and MobiFone, both of which are wholly owned by state-run national PTO Vietnam Posts and Telecommunications Group (VNPT), are set to merge as part of a restructuring of state-owned enterprises, Viet Nam News cites a statement from the Ministry of Information and Communications (MIC) as saying. The proposed merger, which would create Vietnam’s largest wireless service provider with over 50% of the market’s roughly 130 million subscribers, still requires final approval from the government. The decision to merge the two cellcos follows the introduction of new government guidelines last year that stipulate that an institution or individual that owns more than 20% of the charter capital or stake in one telecoms operator, may not hold more than 20% of another firm operating in the same market. The new rule forced VNPT to choose between selling the majority of its shares in either Vinaphone or MobiFone, or merging the two network operators into one company.

Vietnam, MobiFone Telecommunications Corporation, Vinaphone, VNPT-Vinaphone