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Deputy PM pushes for fast VNPT divestment

Update: February, 28/2017 - 09:00
VNPT workers installing new internet cables in a rural area. — Photo thongtincongnghe.com

HÀ NỘI — Deputy Prime Minister Vương Đình Huệ recently urged the Vietnam Posts and Telecommunications Group (VNPT) to speed up its divestment process in its listed member companies.

The Deputy PM has assigned the Ministry of Finance to study a proposal put forth by the Ministry of Information and Communications (MIC) on the divestment of the P&T Hotel Joint Stock Company. He said the proposal was based on the 91/2015/NĐ-CP Decree on October 13, 2015, concerning the Government’s control over the funding of businesses and their management in the context of divestment.

The MIC has instructed VNPT to refer to the decree and proceed with the divestment procedure for the P&T Hotel JSC, in accordance with the laws and the Government interests.

Furthermore, VNPT will continue to divest from the Quảng Nam Transportation Construction Joint Stock Company (QTC), Hacisco Joint Stock Company (HAS) and Low Current - Telecom Joint Stock Company (LTC), according to the current regulations.

In case, using a different method for the divestment process would prove to be more efficient than the current method, the MIC will be responsible for comparison and assessment before reporting to the Government.

Previously, according to VNPT’s financial report, by the end of 2016, the company had divested VNĐ602 billion (US$27 million) over their total VNĐ2 trillion by the books. Their total earning was VNĐ1.04 trillion ($46.7 million), equal to 174 per cent of VNPT’s total investment.

The company continues to divest from 16 divisions using the agglomeration method and from 36 other divisions using the direct method.

However, according to VNPT, the divestment from some of these companies has proved to be quite difficult with many unsuccessful public offerings of the said companies’ shares. — VNS

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