Viettel to push up its restructuring plan

This spirit is reflected in the prime ministerial Decision 753/QD-TTg on Viettel’s restructuring plan during 2013-2015 dated May 17, which was released last week.

The restructuring will help Viettel “become a strong and modern economic group with high competitiveness, to contribute to the national socio-economic growth, defense-security and international integration,” said the decision.

According to the plan, Viettel’s total chartered capital will be doubled to VND100 trillion ($4.8 billion) from VND50 trillion ($2.4 billion) approved by the prime minister in late March, 2011.

Under  the Decision 753, Viettel will largely operate in the telecommunications, information technology (IT), radio and television broadcast fields, as well as in the research and production of telecoms and information and communications technology (ICT) products.

The group’s relevant business segments also include commerce, distribution and retailing of ICT products, finance, banking and property.

Under the restructuring plan, EVN Telecom will be officially merged into Viettel.

EVN Telecom, established as a 100 per cent state-owned and self-financed subsidiary of the state-run Electricity  of Vietnam (EVN), suffered from a big financial loss of over VND1 trillion ($48 million) in 2010 due to its investment into non-core sectors like securities, banking and property.

Viettel is also set to completely withdraw investment capital from five joint stock companies, including Viettel Technologies Corporation, Vinaconex Commercial Development, EVN International, Vinaconex-Viettel Finance and Coecoo Rubber Industry.

During 2013-2015, Viettel will include 11 units, such as Viettel Telecom, Viettel Network, Viettel Television, Viettel Property, as well as 63 Viettel branches in cities and provinces throughout the country.

Viettel’s deputy general director Nguyen Ngoc Hung said Viettel was making its efforts to be listed as among the world’s 10 top telecoms groups with its average annual revenue of $35 billion. At present, Viettel is among the world’s 50 top telecoms groups.

“Viettel also wants to become the leading supplier of ICT products in the Southeast Asia. Viettel also looks to boost its operations in the cable television sector,” Hung said.

This year, the group’s revenue from sales of these products is expected to be about $100 million.

Viettel has been serving more than 60 million customers in six markets in three continents. Its deputy general director Duong Van Tinh said it would be doing business in 10 or 15 nations by 2015. The nations that it would focus its investment into included Myanmar, Kenya, Venezuela, Tanzania, Burkina Faso, Argentina, Cuba, and Swaziland.

Viettel’s total revenue last year was VND141 trillion ($6.78 billion) including 10.6 per cent - or VND15 trillion ($721.15 million) - from overseas markets, and about VND27 trillion ($1.3 billion) in profits.