The Vietnam Post and Telecommunications Group (VNPT) recorded high growth in 2016 compared to 2015, according to figures released by the Ministry of Information and Communications (MoIC).

Revenue was VND135.2 trillion ($6.06 billion), up 7 per cent year-on-year, while profit was VND4.1 trillion ($183.8 million), up 20 per cent and equal to 103.8 per cent of its annual plan. Compared with 2015, revenue in 2016 rose VND4.61 trillion ($206 million) and profit VND882 billion ($39.5 million).

Revenue from telecommunications and ICT was VND127.4 trillion ($5.71 billion), equal to 103.3 per cent of its annual plan and up 7.6 per cent against 2015. Consolidated revenue was VND53.8 trillion ($2.4 billion), equal to 101.2 per cent of its annual plan and an increase of 6.3 per cent against 2015.

As at the end of the year its subscriber numbers totaled 38.6 million, including 31.6 million mobile subscribers, 6.5 million higher than in 2015. The number of new broadband internet subscribers was 3.8 million, increasing 700,000 against 2015, including fiber-to-the-subscriber (FTTx) subscribers of 1.6 million, double the figure last year.

VNPT successfully implemented its restructuring plans this year under Decision No. 888 approved by the Prime Minister and continued to conduct restructuring in its entire production and business in telecommunications services and ICT.   

It targets revenue of VND19.5 trillion ($877.5 million) in the 2016-2020 period, which would give it a market share of 33 per cent and rank it second in the mobile network market. Profit is to be VND24.1 trillion ($1.08 billion), double the figure in the 2011-2015 period, while State budget contributions are expected to be VND21.1 trillion ($949.5 million).

VNPT Chairman Tran Manh Hung said that after two years of restructuring the group has secured healthy financial resources. Its operational model is in three parts: service - infrastructure - business. The group has transformed from providing telecommunications services to multiple services and solutions. At its subsidiary Vinaphone the group has built a system of sales channels with 160,000 retail points. Sales employees increased from 4,000 to 15,000.

“The group’s profit doubled after the years of restructuring,” CEO Pham Duc Long said. “Many weak points in the previous operational system have been resolved.”

In August, VNPT proposed that the government allow it to secure a 20 per cent stake in MobiFone. In 2014 it officially transferred ownership of MobiFone to MoIC, which said it would be equitized before July 2016 but that deadline has now passed.

VN Economic Times