Vietnamese military telecoms giant Viettel told a press briefing Wednesday that an initial public offering was not in the cards at the moment out of fear it would impact major plans to expand the network nationwide.
Earlier this month, the government cleared the way for the mobile services provider to go public, but Nguyen Manh Hung, Deputy General Director, said if Viettel issued shares, short-term targets set by its would-be shareholders were likely to deter the corporation from developing more base stations in outlying areas of Vietnam.
“It would go against Viettel’s operation policy to bring mobile phone services to Vietnamese people from all walks of life, including in rural areas which may not be as profitable as other moves,” Hung said.
Besides, Hung also voiced concern that if Viettel went public, its promotional rate packages could fall outside regulations set by securities trading centers.
Hung emphasized that with the aim of becoming Vietnam’s flagship mobile phone provider this year, Viettel, instead of looking to go public, would do it best to improve service quality, expand the mobile phone network, and lure more subscribers.
Source: Thanh Nien Mekong Capital Equity Vinacapital Fund
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