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December 9, 2019, 7:41 am

MobiFone detaches from VNPT

(11:23:15 AM 03/04/2014)
(Tinmoitruong.vn) - Prime Minister Nguyen Tan Dung has passed Vietnam Post and Telecommunication Group (VNPT)’s proposal to split its largest member unit MobiFone from VNPT as part of the latest restructuring draft plan of the VNPT.

 



Under the draft plan, MobiFone, one of Vietnam’s three largest mobile network operators, will be separated from its parent company VNPT, under the management of the Ministry of Information and Communication, in order to develop the MobiFone Telecom Corporation.
 
Earlier, the Prime Minister has also chaired several meetings to determine whether MobiFone or Vinaphone should be split from VNPT. The final solution reached upon was that MobiFone would be separated and privatised to become the Mobile Telecom Corporation.
 
According to Pham Hong Hai, head of the telecom department under the Ministry of Information and Communications, splitting MobiFone from VNPT would be the best choice because MobiFone was a strong Telco brand both at home and abroad and has a lot of experience in the telecom business. Following equitisation, MobiFone would allegedly become more appealing to investors.
 
Advocating the restructuring proposal, former Deputy Minister of Posts and Communications, now the Ministry of Information and Communication, Mai Liem Truc said that the separation of MobiFone from VNPT would be good for the telecom market and facilitate healthy competition, as currently, the three biggest mobile service providers, including Viettel, MobiFone and VinaPhone were all state-owned.
 
After the split, MobiFone will also take over the liabilities worth VND1.6 trillion (US$75.47 million) from VNPT, which its Chairman of MobiFone Le Ngoc Minh confirmed that the company is totally capable of handling.
Source: Nhan Dan
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