A store of Lumitel, a brand of Viettel Global in Burundi. — Photo courtesy of Viettel Global

HÀ NỘI — Amid the surging wave of telecommunications and technology stocks on the Vietnamese stock market, Viettel Global Investment JSC (VGI) has emerged as a rising star, capturing significant attention as its stock price relentlessly climbs to record levels.

Within three months, the company's market value has more than tripled, reaching an impressive milestone of VNĐ92,600 per share on Monday. As a result, its market capitalisation has soared by approximately VNĐ202.3 trillion since the beginning of 2024, to more than VNĐ281.8 trillion (US$11 billion).

With the market capitalisation exceeding $11 billion, Viettel Global has outperformed many renowned companies including Vingroup, Vinhomes, Hòa Phát, Vinamilk, FPT Corporation, PV Gas and several banks, to secure a third position among the largest companies on the Vietnamese stock market.

Its value now trails only behind Vietcombank and BIDV.

The surge in VGI's stock is fuelled by positive business performance and ambitious plans to address Viettel Global's outstanding issues.

According to the 2024 Annual General Meeting, Viettel Global aims for a consolidated revenue of over VNĐ31.7 trillion, the same result as 2023 and a consolidated profit before tax of nearly VNĐ5.5 trillion, up 41 per cent year-on-year.

The projected profit growth in 2024 is driven by anticipated gains in investment markets and reduced provisions at the parent company.

Viettel Global has shown an impressive business performance in the first quarter.

In its first quarter's consolidated financial report, Viettel Global posted a revenue of over VNĐ7.9 trillion, a 22 per cent increase from the same period last year. All nine markets experienced strong growth, with five markets achieving double-digit rates.

The company's consolidated profit after tax reached over VNĐ1.6 trillion, a remarkable 175 per cent rise compared to the same period last year and the highest level since the third quarter of 2022.

If Viettel Global achieves its outlined business plan for the entire year of 2024, it may be able to overcome the accumulated losses that have persisted for several years. As of December 31, 2023, the company's accumulated losses were nearly VNĐ3.4 trillion, primarily due to substantial losses incurred before 2018.

Under Decree 140/2020/NĐ-CP, effective from November 30, 2020, state-owned enterprises holding more than 50 per cent of the charter capital or total voting shares are required to allocate profits for capital contributors, offset previous losses, set aside funds for rewards, welfare and investment development (up to 30 per cent).

The remaining profits will be distributed as cash dividends to shareholders, while any cash dividends from the state's contribution will be transferred to the national budget.

Viettel Global has a single major shareholder, Viettel Group, owning over 99 per cent of the capital. Since its stock market listing in 2018, the company has not paid any cash dividends.

Operating in nine countries across Asia, Africa and the Americas, Viettel Global is a significant Vietnamese investor in six key markets, Myanmar, Cambodia, Laos, East Timor and Burundi. — VNS