The Ministry of Information and Communications on Monday transferred the ownership of giant telecom service providers Vietnam Post and Telecommunications Group (VNPT) and MobiFone Telecommunications Corporation to the Committee for State Capital Management (CMSC) on Monday.

Speaking at the handover ceremony, Deputy Prime Minister Vuong Dinh Hue said that VNPT and MobiFone were two large enterprises with total assets of more than VND128 trillion (US$5.48 billion), of which VNPT owned assets valued at VND99.6 trillion (with State capital of over VND72 trillion), while MobiFone had VND32.5 trillion (with State capital of VND15 trillion).

The deputy PM also said that VNPT had received approval from the Prime Minister to restructure early this year and was preparing to equitise in 2019.

MobiFone’s equitisation process had been delayed due to violations related to the firm’s deal to purchase 95 per cent of multimedia company Audio Visual Globals (AVG).

Hue asked the committee to work with all parties to complete accounting requirements, reassess assets and recover its money from the deal.

He said telecommunications and information technology were very important in the Fourth Industrial Revolution. The two giants played a key role in the digital economy, sharing economy, e-Government and non-cash payments, especially financial technology.

“VNPT and MobiFone will have to be stronger and more innovative after they are transferred to the CMSC,” said Hue.

"They must be better managed to avoid capital losses and the management of the State’s capital assets must be improved," he added.

When the two giants are under the management of the CMSC, it will separate State management from corporate administration. — VNS