Vietnam's VNPT reports disappointing first half
HANOI - Vietnam's largest telecom service provider VNPT said it earned VND15.3 trillion (US$968 million) in the first half of the year, accounting for only 46 per cent of the yearly target, the lowest level in the past several years. In the telephone sector, VNPT posted 1.4 million new subscribers in the first six months of the year, equal to just 38 per cent of the target for 2005.
The State-owned giant attributed the depreciation to the difficulties in investing in its new telecom projects, which prevent it from meeting market demand.
However, market watchers said VNPT has faced stiff competition from Viettel, which registered 700,000 mobile subscribers since it made its debut in October last year, a figure that took VNPT many years to achieve.
VNPT, which owns the country's two largest mobile carriers Vinaphone and MobiFone, said it is now considering downgrading its revenue target for this year from VND33 trillion to VND23.8 trillion.
According to the Ministry of Post and Telematics, the Government will meet VNPT this month to seek measures to help the company develop.
VNPT, which has nearly 20 subsidiaries and an operating capital of VND2.5 trillion, is one of the country's largest State-owned corporations following PetroVietnam, Electricity of Vietnam (EVN), and Vietnam Shipbuilding Industry Corporation (Vinashin).
The company, which earned some VND30 trillion last year, has a total telephone subscriber figure of 11.2 million (both landline and mobile), and accounts for 98 per cent of the market share.
Vietnam News Agency - July 28, 2005.
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