VNPT submits restructuring plan

19 Nov 2014

State-owned national PTO Vietnam Posts and Telecommunications (VNPT) has submitted its restructuring plan to the Ministry of Information and Communications (MIC), as part of a government plan to increase competition in the telecoms market. VietnamNet reports that VNPT is seeking to separate its operations into three businesses: VNPT-Net, specialising in network infrastructure; VNPT-Vinaphone, a provider of mobile telecoms services; and multimedia unit VNPT-Media. The group’s general director, Tran Manh Hung, said the three new firms will operate independently and will be ‘vigorously evaluated for efficiency’ by VNPT, which generated revenue of VND77 trillion (USD3.6 billion) in the first nine months of 2014. He added that the reorganisation of its core operations into three units will enhance the group’s competitiveness and increase efficiency.

TeleGeography’s GlobalComms Database states that a second VNPT-owned mobile operator, MobiFone, was spun off from its parent in July and put under the management of the MIC ahead of an initial public offering (IPO) scheduled for next year. The move was undertaken with a view to ensuring compliance with legislation that states that an organisation or individual that owns more than 20% of the charter capital or shares in a telecoms enterprise may not hold more than 20% of another firm operating in the same market.