Ministry says merger of telcos must wait

16-Jun-2012 Intellasia | Saigon Times Daily | 7:01 AM Print This Post

The Ministry of Information and Communications has yet to give any formal comment on merging the two mobile networks VinaPhone and MobiFone as proposed by the Vietnam Post and Telecommunications Group (VNPT).

VNPT, which operates VinaPhone and MobiFone, proposed such a merger a few months ago, but the ministry as the State agency overseeing the industry is waiting for the government’s norms in restructuring State-run groups before restructuring VNPT.

Minister Nguyen Bac Son stressed that restructuring State groups and corporations must be conducted with caution. This does not mean it would be carried out at a slow pace or perfunctorily, but must be done systematically, responsibly and in a proper process, Son told an online meeting on the government web portal on Tuesday.

Earlier, the prime minister had assigned ministerial agencies to draw up legal frames for the State sector restructuring. The Ministry of Finance has made a restructuring scheme for State conglomerates and put it forward at the government’s meeting this March.

At present, ministerial agencies are waiting for the official decision of the government on restructuring State groups and corporations.

In the mean time, the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Labour, War Invalids and Social Affairs and some other ministries have to revise a number of legal documents to meet the requirements for State conglomerate restructuring. This will serve as a legal foundation for relevant agencies to comply with.

Son noted VNPT is a capable telecom group, with its brand well known at home and abroad, while MobiFone and VinaPhone are the national brand names, with reputation in the region and the world. Restructuring State groups and corporations is aimed to promote their strengths and is an essential demand after the pilot period.

At the National Assembly discussions, there were many opinions that State groups and corporations had made a major contribution to socio-economic development and become the main force of the State economic sector. Notably, State-run telecom companies have applied advanced technology and made mobile service a popular one, which was formerly a luxury service.

Son said: “I hope VNPT will get stronger after restructuring, VinaPhone and MobiFone will strengthen their positions in the market. And I believe that VNPT (comprising VinaPhone and MobiFone) will have better opportunities for development after restructuring and people will be able to enjoy telecom services of VNPT as well as other providers.”


Category: Business

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