Military-run Viettel to set up subsidiary in US
Military-run Viettel to set up subsidiary in US
Prime Minister Nguyen Tan Dung has approved a plan by the military-run Viettel Group, Vietnam’s largest mobile network operator, to set up its subsidiary in the US, according to the Government Office.
The investment will cost Viettel an enormous US$33 million.
Specifically, Viettel will contribute $100,000 of chartered capital into its US-based subsidiary, namely the Viettel America, and provide the latter with loans worth $32.95 million, according to the Government Office.
The lending as well as capital disbursement for the project will be under close watch from the government and the Ministry of Defense -- Viettel’s managing agency -- in order to maintain and develop the state capital at Viettel.
The investment will receive license from the Ministry of Planning and Investment, the Government Office said.
Viettel, which held nearly 40.7 percent of the Vietnamese telecom market in 2012, compared to 30 percent of its largest competitor Vinaphone, is well-known for a number of outbound investments.
It has established subsidiaries or participated in joint ventures in Laos, Cambodia, Mozambique, Peru, and Haiti.
Prior to the US deal, the company, which topped the list of Vietnam’s largest taxpayers last year, has also considered investment in Myanmar, according to Dau Tu newspaper.
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