Vietnam’s major mobile carriers moving toward privatization

Vinaphone and MobiFone, Vietnam’s two biggest mobile phone companies, will soon be on the path to privatization. The two companies are now fully owned by government-owned Vietnam Posts and Telecommunications Corp. but are looking to diversify into the private sector, at least in part.

“The move aims to diversify their source of capital in order to raise their capacity to compete,” said Hoang Tho Thai, VNPT deputy general director.

Vietnam, aiming to join the World Trade Organization sometime soon, has made other moves as well in order to appear more willing to join the world business community. Analysts predict that the move will attract support from outside the country, which is projected to be a major source of growth in the telecommunications sector in coming years.

“Certainly, there is room for VNPT to prosper and hopefully for companies supplying it to prosper as well,” one expert said.

Also projected to follow Vinaphone and MobiFone into the privatization sector are banks, investment funds, and other local private companies.