In February 2012, the State-owned Vietnam Posts and Telecommunications Group (VNPT) will submit its corporate reshuffle plan to the Ministry of Information and Communication before sending it to the Prime Minister in the first quarter.
The VNPT restructuring scheme covers a broad spectrum of issues, but the centre of attention for the public, managers and investors is the merger of the two mobile networks, VinaPhone and MobiFone, or the privatisation of either network to meet the regulations of the Decree on the Implementation of the Law on Telecommunications. The details of this remain unknown.
At a review conference on operations in 2011 hosted by the Ministry of Information and Communication, Mr Vu Tuan Hung, General Director of VNPT, partly disclosed the scheme but did not mention the centre of attention – privatisation or merger of its mobile communication units.
Mr Hung said that many years ago the restructuring scheme already mentioned the transfer of VNPT backbone out of the Group. However, this has fundamental changes. If the backbone is moved out, the Group will be unable to exist. Hence, VNPT asked the Ministry to propose the Government to allow it to continue operating as a national telecommunications group.
Another possibility is VNPT being allowed by the Government and the Ministry to invest, manage and operate specialised information networks tailored to serve the Party and State agencies. The State-run group said this network is eligibly qualified for the Party and State agencies, but it cannot bring it to serve non-specified users.
And, the Group also suggested the Ministry to ask the Government for the permit to utilise Government-invested infrastructure. It is a huge waste if other companies must invest in similar infrastructure.
It seems that the aforesaid contents are only recommendations that VNPT Group has submitted to the Ministry and the Government.
Mr Hung said the Ministry already instructed the Group to restructure some years ago, but the situation was not as urgent as in the past two years. "VNPT determined that the restructuring is no longer an administrative order of superior management agencies, but its own purpose and objective,” said Mr Hung.
However, the plan for its reorganisation is not detailed, particularly the merger or privatisation of the two mobile communication networks, Vinaphone and MobiFone. Legally, VNPT is permitted to hold only 20 percent of their stakes.
According to analysts, the merger of the two leading mobile networks will give rise to certain disadvantages for VNPT, such as cumbersome leadership, ‘dilution’ of the currently effective business model of MobiFone, and possible return of monopoly on the mobile communication market.
For that reason, privatising either of networks appears to be a more effective solution.
Mr Nguyen Thanh Hung, Deputy Minister of Information and Communications, said at a ceremony that named the Top 10 ICT events in 2011 that Decree 25, which guides the enforcement of the Law on Telecommunications, represented the wish of the State to create a healthy and non-monopolistic market.
He added that the Ministry will continue advising the Government and backing the equitisation (privatisation) of State-owned enterprises to create a truly competitive telecom market.
To sum up, more support the privatisation of VNPT’s mobile networks rather than merger.
VNE
Vietnamese
