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Following the purchase of EVN Telecom by military-controlled Viettel in late 2011, further consolidation is expected in the competitive Vietnamese telecom sector this year. The EVN Telecom/Viettel transaction was the first such deal seen in the country. The market is dominated by state-owned operators, who have been able to compete with low prices and attractive offers for consumers. Most observers feel that privatisation and a reduction in the number of operators is essential for a viable long term market. Meanwhile, state-owned VNPT announced plans to boost the international role of its mobile unit MobiFone by merging it with VNPT Global. The latter was set up in 2008 by VNPT, MobiFone and VNPost, with offices in the US, Singapore, Hong Kong and the Czech Republic. To date VNPT Global has focused on internet and VoIP services, and will now push mobile operations, beginning with a focus on Asia. MobiFone, VNPT’s largest unit, made profits of almost US$300m equivalent in 2011, representing a return on equity of almost 50%.
Meanwhile, Vimplecom is rumoured to have mandated JPMorgan to sell its towers assets in South East Asia.