VietNamNet Bridge - Minister of Information and Communications Nguyen Bac Son said that the equitisation of MobiFone, one of the three leading mobile service providers in Vietnam, can collect about VND20,000 billion (nearly $1 billion) for the State budget.


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MobiFone’s rate of return on equity remained at a high rate of 49.35% in 2015.


"This figure is much higher than the total amount of VND15 trillion earned from sale of state capital in 558 state-owned enterprises in the period 2011-2015," Minister Son said in an online meeting between the government and provinces on December 28.

The minister said that MobiPhone Telecommunications Corporation has the highest profit margin (49.35%), so the most important factor in equitization is the maximum profit, not the time of equitization.

However, the Ministry of Information and Communications committed to follow the roadmap that the government had laid out, Son said.

Earlier, reports of MobiFone said that the corporation earned revenue of VND37,000 billion and profits of more than VND7,300 billion in 2015 and paid VND6,900 billion in taxes.

MobiFone’s rate of return on equity remained at a high rate of 49.35%.

"In terms of turnover, MobiFone earns less than Viettel, but in terms of profit margins, not many businesses paid high taxes as MobiFone, with an average of VND1.5 billion/employee," Son said.

He said this week the Ministry would submit the preliminary business valuation and equitisation plan of MobiFone to the government, but he did not disclose the proportion of divestments.

MobiFone Telecommunications Corporation (MobiFone) was established late last year, after being separated from the Vietnam Posts and Telecommunications Corporation (VNPT) with charter capital of VND15,000 billion, wholly owned by the State.

MobiFone operates in the form of the parent - subsidiary company with five lines of business in the fields of telecommunications services, information technology, broadcasting, and multimedia communications.

In October, Brand Finance (UK) published a list of 50 most valuable brands of Vietnam in 2015, in which MobiFone ranked with a value of $306 million.

MobiFone targeted to earn a total revenue of VND35,873 billion in 2016, up 10%.

At a meeting on December 25, Le Nam Tra, MobiFone President said in 2016, MobiFone will focus its investment in four areas, including mobile, TV, retail and multimedia services, with equitization, retail, 4G, and IoT (Internet of things) the focus.

At the same time, it will focus on telecommunications infrastructure investment, rapid deployment of 4G, and human resources in information technology and television.

Minister of Defence Phung Quang Thanh said in 2015 enterprises of the Defense Ministry paid over VND44,000 billion ($2 billion) in taxes. In particular, Viettel Corporation took the lead with more than VND37,000 billion. "This is to show that the military not only spends money but also makes money and contribute largely to the budget," Minister Thanh said.

US$1 = VND21,500

 

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