VN Post restructuring plan due

Thursday, May 30, 2013 12:02

A Viet Nam Post and Telecommunication Group employee works with a customer. VNPT has to complete its restructuring scheme, including the equitisation of subsidiaries and divestment of non-core business, by the end of next month. — VNA/VNS Photo Minh Tu

HA NOI (Biz Hub)— The Ministry of Information and Communications (MIC) has urged Viet Nam Post and Telecommunication Group (VNPT) to complete its restructuring plan by the end of June.

The plan was due to be submitted to the Government for final approval in September, it said.

The ministry made it clear that the restructuring of VNPT must be in accordance with the Government's telecommunications plan, which states Viet Nam must have three or four large telecommunications groups.

MIC said restructuring must allow continued operations of the three strongest telecommunications brands in Viet Nam, Viettel, MobiFone and Vinaphone.

VNPT also needed to back self-empowerment in member companies, boost the equitisation of companies, and divest capital in non-core fields.

The ministry also requested VNPT to strengthen both domestic and overseas business development, focus on projects VINASAT 2 and the North-South optical cable project which benefit Japan's ODA.

MIC earlier rejected a proposal by State-owned operator VNPT to merge its two mobile units, Vinaphone and MobiFone, citing competition concerns.

It ruled that VNPT restructuring could not result in the loss of one of Viet Nam's three largest telecom brands.

VNPT announced the merger plan early last year, as part of restructuring and to comply with new regulations, stipulating that an investor with more than 20 per cent stake in one operator cannot own more than 20 per cent of another. VNPT owns 100 per cent of both Vinaphone and MobiFone. — VNS

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