Vietnam Govt eyes telco mergers
According to the Government, a draft plan to develop the national telecoms industry until 2020 aims to make the telecommunications sector more dynamic, in part by enforcing a clear regulatory framework.
The draft also addresses the equitisation process in the sector in a bid to create more incentives for private businesses to invest in the development of the telecoms market. Meanwhile, the plan also aims to restructure telecommunications companies managed by the State-owned Viet Nam Posts and Telecommunications Group.
According to the Ministry of Information and Communications, nine companies have been granted licences to establish telecoms networks. State-run enterprises in the sector include VNPT, Viettel, Indochina Telecom, GTel and Vishipel.
Pham Hong Hai, General Director of the Telecommunications Department at the Ministry of Information and Communications, said that depending on each period, the State would divest its capital from telecommunications businesses in which the State did not hold a majority stake.
Meanwhile, Mai Liem Truc said Vietnam’s telecom market had become increasingly open and competitive in recent years, but there were not enough incentives for the private sector to invest in telecommunications.
