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VNPT and MobiFone officially transferred to CMSC

Update: November, 13/2018 - 14:00
A MobiFone office in Hà Nội. — VNA/VNS Photo Minh Quyết
Viet Nam News

HÀ NỘI — The Ministry of Information and Communications on Monday transferred the ownership of giant telecom service providers Vietnam Post and Telecommunications Group (VNPT) and MobiFone Telecommunications Corporation to the Committee for State Capital Management (CMSC) on Monday.

Speaking at the handover ceremony, Deputy Prime Minister Vương Đình Huệ said that VNPT and MobiFone were two large enterprises with total assets of more than VNĐ128 trillion (US$5.48 billion), of which VNPT owned assets valued at VNĐ99.6 trillion (with State capital of over VNĐ72 trillion), while MobiFone had VNĐ32.5 trillion (with State capital of VNĐ15 trillion).

The deputy PM also said that VNPT had received approval from the Prime Minister to restructure early this year and was preparing to equitise in 2019.

MobiFone’s equitisation process had been delayed due to violations related to the firm’s deal to purchase 95 per cent of multimedia company Audio Visual Globals (AVG).

Huệ asked the committee to work with all parties to complete accounting requirements, reassess assets and recover its money from the deal.

He said telecommunications and information technology were very important in the Fourth Industrial Revolution. The two giants played a key role in the digital economy, sharing economy, e-Government and non-cash payments, especially financial technology.

“VNPT and MobiFone will have to be stronger and more innovative after they are transferred to the CMSC,” said Huệ.

"They must be better managed to avoid capital losses and the management of the State’s capital assets must be improved," he added.

When the two giants are under the management of the CMSC, it will separate State management from corporate administration. — VNS

 

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