The Hanoitimes - Before starting the equitization process in 2019, the Vietnam Posts and Telecommunications Group (VNPT) is expected to complete its restructuring plan as approved in 2014 by the government.
The Deputy Prime Minister Vuong Dinh Hue has signed the Decision No. 2129/QD-TTg approving the restructuring plan for VNPT in period 2018 – 2020. As such, the objective is to transform VNPT into a strong state owned economic corporation, a leading digital services supplier in Vietnam and a digital transaction center in Southeast Asia and Asia.
VNPT is aiming that by 2020, the average turnover growth of at least 6.5% per year and annual average profit increase of at least 10.8%. For period 2021 – 2025, the average turnover growth rate will be over 7.7% per year, while the annual average profit increase exceeds 11% per year. It is expected that by 2020, the return on equity (ROE) of VNPT is equal to other corporations operating in the same field. In particular, the equitization process of VNPT must be completed in 2019 will be carried out after the restructuring plan, which has been submitted to the Ministry of Information (MIC) and Communications and the Prime Minister.
VNPT has the largest number of fixed broadband subscribers in Vietnam.
With regard to the restructuring plan, in period 2018 – 2020, VNPT will establish VNPT Information Technology Company (VNPT-IT); merge the VNPT merge the VNPT Hospital of Nursing – Rehabilitation in Hai Phong city into the Hospital of Post and Telecommunications in Hanoi and maintain the Vietnam Telecom Services Corporation; review the plan to establish VNPT Global under the ownership of VNPT.
To complete the restructuring plan, the VNPT has founded a board, which specializes in the firm’s equitization process, and asked its member companies to compile corporate reports. The VNPT has completely restructured its three corporations, which are telecommunication services provider VNPT-VinaPhone, network operator VNPT Net and value-added services provider VNPT Media. The group will provide telecommunications and information technology products, media products, provide consultancy and maintenance for telecommunications, information technology and media buildings and manufacture, import and export telecommunications, IT and media products.
Along with this plan, under the circumstance of VNPT having a large number of mobile subscribers, but its revenue has not been high as expected, VNPT will rearrange its operation and divest capital from non-core operation, thus obtaining positive earnings.
The group earned revenue of 144.7 trillion VND (6.36 billion USD) in 2017, rising by 7 percent over the previous year. Its pre-tax profit reached 5.1 trillion VND (224.4 million USD), up by 21 percent. VNPT paid more than 4 trillion VND (176 million VND) to the State budget in 2017, up by 9.3 percent. It has 34.1 million mobile subscribers and 4.6 million broadband subscribers by the end of 2017.