MobiFone to expand into retail, TV

Tuesday, Jul 28, 2015 16:01

MobiFone Corporation will expand its businesses into retail and television in the 2015-20 period. — Photo

HA NOI (Biz Hub) — MobiFone Corporation will focus on its businesses in telecom, television, retail and multimedia in the 2015-20 period, General Director Cao Duy Hai said at a meeting on July 27.

He said the enterprise would build a large distribution channel to increase MobiFone's market share.

The firm aims to achieve an annual average growth rate of more than 20 per cent, and to earn more than VND100 trillion (US$4.54 billion) in revenue by 2020. It wants its before-tax profit to grow at three to five per cent. The firm's contribution to the state budget grew an annual average rate of five per cent.

In the 2010-14 period, MobiFone earned more than VND191 trillion ($8.68 billion) in revenue, with an annual average growth rate of eight per cent. Its before-tax profit was nearly VND33 trillion ($1.5 billion). The firm contributed nearly VND23 trillion ($1.04 billion) to the state budget.

In recent years, Vietnamese mobile network operators such as Viettel and VinaPhone have entered the retail market. Viettel has built a distribution channel with Viettel stores in many cities and provinces, while VinaPhone has co-operated with various partners such as Apple to distribute their products in Viet Nam.

Viettel and FPT have participated in television broadcasting. Viettel and FPT were awarded broadcasting licences by the information and communications ministry in 2013, and both are currently providing cable TV services.

The information and communications minister had signed a decision on December 2014, establishing the MobiFone Corporation, with 100 per cent of its charter capital of VND15 trillion (more than $681 million) being owned by the government.

Its major businesses include investment, construction, operation and exploitation, as well as provision of telecom, information technology, broadcasting and multimedia services. — VNS

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