HA NOI (VNS)— The Ministry of Information and Communications has urged the country's largest telco VNPT to focus on its core business and exploit its potential to stay profitable in the increasingly competitive market.
The ministry, which recently took control of the Viet Nam Post and Telecommunication Group (VNPT) under Government circular 90/2012/ND-CP, said it would carry out inspections of most of VNPT's branches.
The move follows turbulence in VNPT over recent years.
The country's oldest telecom service provider last year for the first time was surpassed by its rival Viettel in profit and turnover.
VNPT in January had adjusted its profit in 2012 to VND8.66 trillion (US$412.38 million) from the previously reported VND8.5 trillion ($404.76 million).
However, the adjustment was unable to help VNPT to regain its crown as Viettel posted a profit for the year of VND27 trillion ($1.3 billion), up from VND20 trillion ($953 million) in 2011 and triple the profits of VNPT.
Viettel's earnings through December totalled an estimated VND140 trillion (US$6.6 billion), compared to VNPT's projected total for the year of VND130 trillion ($6.1 billion).
In addition, VNPT's earnings depend on its two mobile network operators, MobiFone and Vinaphone, that contributed a turnover of VND66.3 trillion ($3.2 billion), accounting for more than half of the group's total.
Vinaphone earned a revenue of VND22.579 trillion ($1.09 billion), while Mobifone contributed the other 60 per cent. — VNS