Vietnam to allow foreign investment in telcos

Nicole McCormick
01 Jul 2010
00:00

Vietnam has proposed allowing direct foreign investment in telecom operators.

The Ministry of Information and Communications (MIC) wants foreign investors granted permission to own up to 30% of the capital of a telecoms company, reportedVietNamNet Bridge.

The MIC will submit the proposed change to the Telecommunications Law to the cabinet in August.

Foreign investors are currently restricted to entering the market through a Business Co-operation Contract (BCC), which is essentially a profit-sharing arrangement with the local telco partner, or joint venture arrangement.

Vietnam has seven mobile operators, including state-owned MobiFone and VinaPhone, Viettel, which is owned by the military, and EVN Telecom owned by the Electricity of Vietnam Group.

Russia’s VimpelCom owns a 40% stake in the JV behind that operates GSM startup Beeline, and Hutchison is a partner in Hutchison Vietnam, while SK Telecom ceded control of CDMA operator S-Fone to partner Saigon Postel in April.

Vietnam has until 2012 to open up its telecom market to foreign investment under its World Trade Organisation obligations.

MORE ARTICLES ON BEELINE, EVN TELECOM, MOBIFONE, S-FONE, SAIGON POSTEL, VIETTEL, VIETNAM, VINAPHONE

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