Telecom giants must develop equitisation plans: MIC
Telecom giants must develop equitisation plans: MIC
The three telecommunication groups under direct management of the Information and Communications Ministry (MIC) will have to develop their equitisation plans in 2017, according to the Minister of Information and Communications, Truong Minh Tuan.
The three groups are the Viet Nam Post and Telecommunications Group (VNPT), Viet Nam Multimedia Corporation (VTC) and MobiFone Telecommunications Corporation (MobiFone).
The equitisation of the three telecom giants has to be speeded up in accordance with a December 2016 decision by the Prime Minister on criteria to differentiate State-owned enterprises (SOEs) and State-invested companies, he added, speaking at a meeting on January 23.
Along with the decision, the PM also published the list of 240 SOEs that have to be equitised by 2020. On the list of 240 SOEs to be equitised, VNPT and MobiFone are the two among 27 firms in which the Government will hold 50-65 per cent ownership. VTC is among 106 SOEs in which the State’s stake will be reduced to below 50 per cent.
Among the rest of the 240 SOEs, the State’s ownership will remain 100 per cent in 103 SOEs while its stake will stay over 65 per cent in four others.
VNPT in 2016 recorded revenues of VND135 trillion (US$6.09 billion), up 7 per cent from 2015, whereas income rose by 20 per cent to VND4.16 trillion.
MobiFone reported revenues of VND38.4 trillion, up 14.5 per cent from 2015 with 19 million subscriptions. VTC surpassed their goal for 2016, with total revenues reaching VND5.2 trillion, up 39 per cent compared to 2015.
The Government has enhanced divestment from SOEs, ranging from breweries to dairy producers. Those deals have attracted intense attention from foreign investors given that Viet Nam is one of the fastest growing economies due to its young population and rapidly increasing export turnover, the Wall Street Journal reported last week.
In the past 15 years the number of SOEs has fallen from around 6,000 to over 700. Between 2011 and 2015 almost 600 SOEs were equitised, 96 per cent of the targeted number.
