Vietnam's Largest Mobile Operators Urged to Go Public

Vietnam's Largest Mobile Operators Urged to Go Public

The Vietnam Association of Financial Investors (VAFI) has urged the Ministry of Post & Telecoms (MPT) to privatize Vinaphone and MobiFone, the two leading mobile networks in Vietnam.

According to VAFI, the two mobile companies are absolutely appropriate for privatization. The networks, owned by the State-run Vietnam Post & Telecoms Corp. (VNPT), are performing well.

The privatization of the two networks is expected to go smoothly with no problem in debts or redundant employees and the newly promulgated Decree No.187 on shifting State-owned enterprises into joint stock companies is hoped to provide a good background for equitization.

If every investor can buy dozens of VND shares through Vinaphone and MobiFone share auctions, it will help bring 100,000 new investors to the local stock market, said Nguyen Hoang Hai, VAFI Secretary General. That will put the target of one million investors by 2010 within reach.

Hai stressed that the privatization of Vinaphone and MobiFone will meet the demand from the public. The Government, aware of the opportunity, requested MPT have the two companies privatized in 2004.

“MPT should set a deadline for the privatization of the two companies in order to ensure the pace of the privatization process,“ said Hai, adding that this will not contradict current laws as the State will hold 51 per cent of the company's chartered capital.

Since its establishment in 2000, Vietnam’s stock exchange remains small, with only 20,000 accounts. But financial experts have called the relevant bodies to create big, attractive offering events to grab the public's attention.

Vinaphone has signed up 2.8 million subscribers and MobiFone 2.3 million.
VietnamNet