Viettel to divest 6 per cent stake in Viettel Post

Viettel will divest 6 per cent in Viettel Post through a public auction at the Hanoi Stock Exchange

At present, Viettel is currently holding 55.49 million shares of Viettel Post, equalling the ownership rate of 66.81 per cent. Once the auction is successful, Viettel will only hold 50.51 million shares of Viettel Post, representing about 60.81 per cent. Foreign investors account for a 20 per cent sake of Viettel Post.

In 2019, Viettel Post earned VND7.812 trillion ($339.65 million) in revenue and VND380 billion ($16.5 million) in after-tax profit, up 59 and 36 per cent on-year.

In the first half of 2020, the COVID-19 pandemic has created supply chain disruptions but Viettel Post still posted postive results with VND6.799 trillion ($295.6 million) in revenue, an increase of 2.25 times on-year. Meanwhile, its after-tax profit reached VND200 billion ($8.7 million) in the given period, up 21 per cent on-year. In 2020, Viettel Post set the target of VND495.7 billion ($21.55 million) in after-tax profit. The company has so far fulfiled 40 per cent of the year's target.

Viettel Post is the second-largest contender in the Vietnamese postal industry, after Vietnam Post (VN Post). Its network extends to all 63 cities and provinces nationwide. It has more than 2,200 post offices or shops and more than 6,000 transaction offices.

In the past five years (2015-2019), Viettel Post has achieved an average revenue growth rate of 43.3 per cent per year. As revenue grows four times in the past five years, Viettel Post can maintain high and stable growth in the market. There are three pillars for its impressive growth including post, delivery, as well as logistics and trade services.

As part of its development strategy for the 2020-2025 period, Viettel Post aims to become Vietnam's largest express delivery. Viettel Post aims to maintain a high annual growth rate of 22 per cent in revenue and 17.2 per cent in profits. By 2025, Viettel Post sets its revenue target at VND18-23 trillion ($782.6 million to $1 billion) and pre-tax profit target at VND1.2-1.4 trillion ($52.17-60.87 million).