Domestic telecom providers see big revenues in 2016

Pham Duc Long, VNPT’s Chief Executive Officer, delivering his speech at the MIC’s conference. All four major telecommunication service providers of Viet Nam had experienced positive growth in 2016. — Photo ictnews.vn

Representatives from four of Viet Nam’s largest telecommunication companies reported very large revenues in 2016, with significant improvements over 2015, at a conference held by the Ministry of Information and Communications (MIC) in Ha Noi yesterday.

The Vietnam Posts and Telecommunications Group (VNPT) announced a sharp rise in both revenues and profits in 2016, compared to the same period in 2015, said Pham Duc Long, VNPT’s Chief Executive Officer at the conference.

The company recorded revenues of VND135 trillion (US$6.09 billion), up by VND46.1 trillion ($2.08 billion) or 7 per cent from 2015, whereas income rose by 20 per cent to VND4.16 trillion ($187.7 million), VND882 billion ($39.8 million) higher than in 2015.

This has been the third year in a row for VNPT to increase revenues by more than 20 per cent, compared to the previous year, thus tripling the company’s average productivity, with a total of 38.6 million subscriptions at the end of 2016, up by 6.5 million subscriptions from 2015.

VNPT had experienced new growth in 2016, after its reengineering process was completed, focusing on customer service and network management, to receive a higher flow of income.

However, Long said the 7 per cent increase in revenue in 2016 for VNPT had not been high, due to a strong shift in the development of traditional services, as mobile and broadband internet experienced growth, while landline services declined sharply.

Similarly, the Vietnam Military Telecommunications Group (Viettel) saw an increase in revenue of VND256 trillion ($11.5 billion) in 2016, with a rise of 7.4 million subscriptions, in total, said Hoang Son, Viettel’s Deputy General Director.

As a newly separated division of VNPT, Vietnam Mobile Telecom Services (MobiFone) also reported revenues of VND38.4 trillion ($1.7 billion), up 14.5 per cent from 2015 with 19 million subscriptions, said Le Nam Tra, Chairman of MobiFone.

Vietnam Television Corporation (VTC) surpassed their goal for 2016, with total revenues reaching VND5.2 trillion ($234.7 million), up 39 per cent compared to 2015, said Luu Vu Hai, VTC’s Chairman of Member Council.

The four companies attributed their increases in revenues for 2016 to the MIC’s reengineering plan, and expressed optimism for 2017. — VNS