Mobifone subscribers register for telephone service. The ownership of Viet Nam Posts and Telecommunications was recently transferred to the Ministry of Information and Communications. — VNA/VNS Photo The Anh

HA NOI (Biz Hub) — Viet Nam Posts and Telecommunications (VNPT) officially transferred ownership of MobiFone to the Ministry of Information and Communication (MIC) in a ceremony held on Thursday.

The handover is a part of a recent decision by Prime Minister Nguyen Tan Dung, which approved VNPT's restructuring plan and came into effect on June 10.

According to the decision, mobile network operator Mobifone was detached from state-owned VNPT, and placed under the management of the MIC.

The decision also stipulated that VNPT would re-organise its member telecommunications companies under one firm, called VNPT – Vinaphone.

Previously, VNPT was allowed to establish member firms such as VNPT – Media, operating in multimedia services, and VNPT – Net, specialising in network infrastructure.

In a separate development, MIC last week said VNPT could hold 20 per cent of the registered capital of Mobifone, the maximum stake allowed under the cross ownership regulation in the 2009 Telecommunication Law.

Meanwhile, MIC said MobiFone would be re-organised in the second quarter of 2014. The company's equitisation plan will be completed and submitted to the Prime Minister in the last quarter of 2014.

Previously, a report from the HCM City Stock Exchange estimated that Mobifone was valued at approximately US$3.4 billion. This value could rise to more than $4 billion if the company's revenue and profit continue to increase after its separation from VNPT. — VNS