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 Minister Truong Minh Tuan.
The three groups are the Vietnam Post and Telecommunications Group (VNPT), Vietnam 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 percent ownership. VTC is among 106 SOEs in which the State’s stake will be reduced to below 50 percent.
Among the rest of the 240 SOEs, the State’s ownership will remain 100 percent in 103 SOEs while its stake will stay over 65 percent in four others.
VNPT in 2016 recorded revenues of VND135 trillion (US$6.09 billion), up 7 percent from 2015, whereas income rose by 20 percent to VND4.16 trillion.
MobiFone reported revenues of VND38.4 trillion, up 14.5 percent from 2015 with 19 million subscriptions. VTC surpassed their goal for 2016, with total revenues reaching VND5.2 trillion, up 39 percent 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 Vietnam 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 percent of the targeted number.VNA