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| The Government has requested EVN Telecom and Viettel to each submit reports on the transfer plan, so that the PM can make the official decision. |
At a press conference held by the Ministry of Industry and Trade on November 20, Thanh said EVN has begun making preparations for the transfer.
Deputy Minister of Industry and Trade Hoang Quoc Vuong said, the Government has requested EVN Telecom and Viettel to each submit reports on the transfer plan, so that the PM can make the official decision.
According to Thanh, the PM ordered all state-owned economic groups, including EVN, to withdraw their capital from non-core business interests. He added that, EVN plans to withdraw its banking and securities assets, with the hope of completing this goal in the next one to two years.
The transfer of EVN Telecom will help reduce EVN’s non-core investment so that it can focus on power production.
Hanoi Telecom and Viettel were bidding to buy EVN Telecom. After rumours that EVN Telecom could be bought out by Viettel, Hanoi Telecom sent a request to the Prime Minister for an intervention in the acquisition.
Hanoi Telecom claimed that the merger between Viettel and EVN Telecom would bring about a monopoly in the industry, since Viettel owns the largest market share in the sector.
Other experts predicted that if the merger took place, smaller companies, such as Hanoi Telecom/Vietnammobile, Sai Gon Postel/Sfone and others would be put at a disadvantage.
EVN Telecom was the sixth mobile network in Vietnam. During its seven years in operation, it has attracted only a modest number of subscribers. EVN Telecom is now in debt to many of its partners, including Viettel and the Vietnam Post and Telecommunications Group (VNPT).
