Hanoi Telecom’s general director owns 1 per cent of Vietnamobile

Photo source: internet

According to license No. 9211668888 recently issued by the Hanoi Department of Planning and Investment, Vietnamobile’s total investment capital is $1.24 billion, of which the capital to carry out the project is $428.6 million. The contributions of three investors, namely Hanoi Telecommunication Joint Stock Company, Hutchison Telecommunications (Vietnam) S.À.R.L, and Trinh Minh Chau, were $214.797 million, $210.501 million, and $4.295 million, respectively.

Vietnamobile JSC has a debt of $818.4 million towards its investors, financial institutions, and other legal sources. The sum borrowed only from Hutchison is $364 million. This is due to the transformation agreement between Hanoi Telecom and Hutchison Telecommunication (Vietnam) S.À.R.L, which shifted the company out of the business cooperation contract (BCC) format.

Meanwhile, the sum borrowed from financial institutions and equipment and assets bought on credit from foreign equipment providers is $454.4 million. The sum was borrowed according to the needs of the project.

According to its website, Hanoi Telecom was established in May 2001, with a chartered capital of VND1.6 trillion ($71.7 million). It was licensed to set up a network and to provide landline and mobile telecommunication services, internet, VoIP, and long distance domestic and international calling, like all other telecom companies in Vietnam.

According to Hanel Co., Ltd.’s prospectus, at the time of its IPO in April 2016, Hanoi Telecom’s chartered capital was VND1.6 trillion ($71.7 million), with Hanel holding 1.13 per cent of equity. Trinh Minh Chau was Hanel’s general director in 2000-2006 and is now general director of Hanoi Telecom.

At the end of April, Hanoi Telecom celebrated its 15th anniversary and the prime minister’s approval for Vietnamobile to change from a BCC entity to a joint stock company.

Pham Ngoc Lang, chairman of Hanoi Telecom, said that Hanoi Telecom targeted a 20-30 per cent growth in revenue per year until 2020.

Vietnamobile will provide 3G services in all 63 cities and provinces by the end of 2016, with a view to upgrading the infrastructure to provide 4G upon demand. CEO of Hutchison Telecommunications International Ltd. Dennis Lui said that the Vietnamese government could do more to ensure fair competition between small network providers, like Vietnamobile, and bigger ones, such as Vinaphone, MobiFone, and Viettel.

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