VNPT restructuring set to go ahead this month

18 Sep 2013

Vietnam’s Ministry of Information and Communications (MIC) is expected to formally restructure state-owned Vietnam Post and Telecommunications (VNPT) this month, with the telco set to become a holding company for its two cellular subsidiaries, MobiFone and Vinaphone. Between them, the two firms controlled almost half of the country’s 127.6 million cellular subscribers at the end of June 2013, according to figures from TeleGeography’s GlobalComms Database; the market is led by another state-backed firm, Viettel.

Minister Nguyen Bac Son says the new VNPT will focus on areas such as development strategies, management, technology, products, building a brand name, human resources training and external relations, Vietnam News reports. The group will continue to offer fixed telephony and internet services under its own name. VNPT had originally proposed merging its two wireless subsidiaries, but the government rejected the idea as it is keen to retain at least three major players in the mobile sector.

Vietnam, MobiFone Telecommunications Corporation, Vinaphone, VNPT-Vinaphone