Leading telco group VNPT promises to be discreet in its restructuring plan.
>> VNPT needs time to restructure
The state group would hand in its reform plan to the prime minister in the first quarter of 2012, according to VNPT’s deputy general director Phan Hoang Duc.
Duc, however, refused to go into details, just saying “until getting the prime minister’s thumbs-up, VNPT will continue promoting the application of an internal economic mechanism among member units as well as scaling up sharing of network infrastructure and fostering business cooperation among them.”
The group’s general director Vu Tuan Hung said the target of re-arranging VNPT’s operation was an urgent task.
In fact, the leading state telco raked in VND120.8 trillion ($5.7 billion) revenue in 2011, surging 20.4 per cent on-year, but its profits just amounted VND10 trillion ($476 million), down VND1.2 trillion ($57 million) against 2010 and falling short of the year’s projection.
In 2012, the group set a modest profit target of VND10.3 trillion ($490 million), up 3 per cent against 2011 only meanwhile military-run telecom group Viettel reaped VND20 trillion ($952 million) profit in 2011 and set to achieve a 20-25 per cent growth in 2012 profit against 2011.
VNPT executives, however, refused to comment on whether it would merge some smaller units to optimise efficiency.
In respect to the operation of VinaPhone and MobiFone mobile networks under its umbrella, Duc said at first these two operators would share telecom infrastructure in its restructuring plans, while other issues relevant to their organisation and business structure would be the next step.
Scores of investors, particularly foreign ones, reportedly wanted VNPT to soon finalise equitising MobiFone and sell stake of its largest member company to a strategic investor.
“World experiences in restructuring big groups show that it could take at least five years, but not one or two years, for a restructuring process to yield fruits. VNPT is not an exception,” said Duc.