Viettel offshore operations yield first profit

Vietnam’s military-run telecom firm Viettel has reported the first profit made in foreign markets, which proves its overseas investment strategy is on the right track.

According to Le Dang Dung, deputy general director of Viettel, the company’s operations in Cambodia have been successful over the past three years.

Viettel has so far invested $40 million into Cambodia but it remitted home $35 million in profit generated from Cambodia business operations last year. It also plans to bring home $75 million in profit this year.

Viettel’s efforts in the Laos market have paid off as well. It is estimated that the company will repatriate millions of U.S. dollars from the Lao market this year.

In the meantime, Viettel’s business operations in Mozambique and Haiti are not as good but it expects to break even this year and gain profit in the two nations next year.

Viettel in 2011 achieved a profit of $40 million from its foreign markets. The figure is forecast to double this year while Viettel is looking to obtain total revenues of VND140 trillion for the year.

Sources from Viettel told the Daily that the enterprise had received an investment license for providing telecom and Internet services in Cameroon, which has the largest population in Africa. This is the seventh foreign market Viettel has entered after Cambodia, Laos, Haiti, Peru, Mozambique and Tanzania.

“Viettel’s revenues in foreign markets now account for only 15% of its total but they will pick up year by year,” Dung said.

He ascribed the success of his firm to its aggressive investment plan. “Viettel’s offshore investments are part of its long-term development plan as there will be little or no room for business in Vietnam in the next 20 years,” he explained.

He underlined the importance of taking drastic and wise actions in a timely manner to turn the investment plan into reality.

Source SGT