VietNamNet Bridge – Vietnam Mobile Telecom Services Company (MobiFone) has officially become MobiFone Telecom Corporation under the Ministry of Information & Communications’ decision.

State-owned MobiFone has a charter capital of VND15 trillion ($715 million) and it operates in the form of a parent-subsidiary in five major business areas: telecom services, information technology, broadcasting, and multimedia communications.

Following a decision signed by Minister of Information and Communications Nguyen Bac Son, the corporation will have 12 subsidies operating in all 63 provinces and cities across the country, network, research and design centers.

MobiFone also holds dominant share (more than 50%) at three companies, including MobiFone Global, MobiFone Plus and MobiFone Service.

The corporation also holds less than 50% of the charter capital of the four other firms: Company for Investment and Development of Technology and Communications, Advertising Company, Multimedia Communications Company, Southeast Asia Bank (Seabank) and Tien Phong Bank.

The upgrade of MobiFone into a corporation was approved by the Prime Minister this November to implement the restructuring scheme of the Vietnam Posts and Telecommunications Group (VNPT) in the period 2014-2015.

Under this scheme, MobiFone will be separated from VNPT and directly managed by the Ministry of Information and Communications.

Representatives of the Ministry of Information and Communications have said that MobiFone will be restructured in the third quarter of 2014 and its equitization plan will be submitted to the Prime Minister in the fourth quarter. In particular, VNPT may hold approximately 20% of the charter capital, the maximum rate allowed under the provisions of cross-ownership in the Telecommunications Act 2009.

Minh Thu