Vietnam to approve MobiFone sale by year-end

12 Jun 2014

The Vietnamese government plans to approve the privatisation of Vietnam Mobile Telecom Services (more commonly known as MobiFone) by the end of the year, Reuters reports, citing a government directive. Vietnam’s second largest mobile operator by subscribers will first be hived off from state-owned parent Vietnam Posts and Telecommunications (VNPT) before MobiFone shares are then sold in an initial public offering (IPO) as part of the privatisation process. National PTO VNPT, which also owns the mobile market’s third largest player Vinaphone, has been ordered to restructure its operations to increase competition in the telecoms market. Hanoi is also encouraging VNPT to develop other existing businesses, such as multimedia services and information technology, in the face of increasing pressure from military-run mobile market leader Viettel.

Vietnam, MobiFone Telecommunications Corporation, VNPT-Vinaphone