As part of its ongoing restructuring process, state-owned national PTO Vietnam Posts and Telecommunications (VNPT) will officially present its newly created mobile and telecoms unit on 11 August, reports Viet Nam News. The new unit, which is known as VNPT-Vinaphone, brings together the operations of cellco Vinaphone, Vietnam Data Communication Company (VDC), the Vietnam Telecoms National Company (VTN) and VNPT International. It is targeting a 30% share of the domestic mobile market and will focus on key businesses such as: telecoms and IT services and products; multimedia, television and radio broadcasting services; leasing of telecom infrastructure and facilities; and wholesale and retail sale of electronic, telecoms and IT equipment. With a registered capital of VND5.2 trillion (USD234 million), the corporation aims to pre-tax profit of VND3.3 trillion by 2020.
TeleGeography’s GlobalComms Database notes that VNPT was required to restructure its operations as part of a government programme aimed at reorganising state-owned companies to boost competition in certain markets. In July 2014 the country’s second largest cellco MobiFone was spun off from VNPT and put under the management of the Ministry of Information and Communications (MIC). In early 2015 Prime Minister Nguyen Tan Dung approved VNPT’s restructuring plan, which subsequently saw the establishment of three core business units: VNPT-Vinaphone; VNPT-Net, specialising in network infrastructure; and VNPT-Media, responsible for researching, developing and producing software and value added services, as well as the publication of books, publications and music products.