The Ministry of Information and Communications will allow a number of telecom companies which face difficulties to go bankrupt or withdraw from the telecom market.
Small firms S-Fone is likely to leave the market
The information was confirmed by Deputy Minister of Information and Communications Le Nam Thang at a recent meeting in Hanoi.
According to Thang, the ministry will propose measures to help deal with weak telecom businesses.
Failing companies such as Dong Duong Telecom will have their business license revoked and be forced to move into other business areas, he added. The official also said that members of poorly-performing telecom firms can set up joint stock or private companies voluntarily through negotiations.
The move was aimed at creating a healthy competitive telecom market with at least three companies in line with the prime minister’s instruction, the deputy minister said, adding that some small firms like EVN Telecom had merged with Viettel, while Gtel and S-Fone were likely to leave the market.
Earlier, Pham Hong Hai, Head of the ministry’s Department of Telecommunications, said the ministry would maintain a healthy competitive market. So only those companies which were capable would survive regardless of their size.
According to Deputy Minister Le Nam Thanh, the Vietnamese telecom market was considered one of the most competitive in Southeast Asia with better telecommunication service quality and relatively cheap prices. People in different areas, including those in remote areas, also had access to telecom services.
