MobiFone officially transformed into a Telecommunication Corporation

20-Nov-2014 Intellasia | Phap Luat Online | 6:00 AM Print This Post

On November 17, the prime minister agreed with the proposal of the Ministry of Information and Communications (MIC) to transform Vietnam Mobile Telecom Services Co (VMS) into MobiFone Telecommunication Corp.

The prime minister assigned the MIC to decide the transfer following the current regulation and be responsible for MobiFone’s equitisation in accordance with the prime minister’s Decision No. 888/QD-TTg dated June 10, 2014 on the approval of the restructuring scheme of Vietnam Posts and Telecommunications Group (VNPT) in 2011-2015.

MIC says following Vietnam Telecommunication development plan until 2020, that MobiFone becomes one of the strongest corporations in the Vietnam telecommunication market with the state holding the dominating role is an objective requirement. At the same time, it is a prerequisite for the establishment of the telecommunication market with three major network operators including Vinafone, Viettel and MobiFone.

MobiFone meets the conditions, criteria specified in the government’s Decree No. 69/2014/ND-CP dated July 15, 2014 on requirements to establish economic groups and state corporations in terms of business effectiveness, financial safety, qualification of the human resources, labour productivity, scale of the chartered capital, revenue, profits on tax, contribution to the state budget.

As per MIC leader, the equitisation of VMS is currently very favourable as the company has been doing business effectively, and there are many foreign partners interested in investing in VMS. At the same time, VMS is a large-scale business with area of operation spreading throughout the country and has also invested in some international markets with branches in Hongkong, Myanmar and the US

For many consecutive years, the company has been one of the five state businesses that had a big contribution to the state budget. The company itself is also operating under the parent – subsidiary model.

The change of VMS into MobiFone Telecommunication Corp. and the equitisation implementation will increase MobiFone’s brand value, attract the attention of strategic partners, investors and achieve higher equitisation results.

 


Category: Business, Vietnam

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