Vietnam’ s telecom company Viettel Global is setting up a joint-venture with Myanmar investors to build a $1.8 billion mobile network in Myanmar. This was disclosed in the company’s recent shareholders meet.
According to the terms of the deal, Viettel Global will directly invest $800 million and the remaining $ one billion will be raised from foreign investors and Viettel Myanmar.
As the size of the investment is larger than 50 per cent of the total assets recorded in Viettel Global’ s latest audit report, it was required that Viettel Global consult its shareholders before signing the contract.
However, Viettel (the parent company) owns 97.58 per cent equity stake in Viettel Global, so the plan was easily adopted by the shareholders.
According to the company website, Viettel Global currently invests in eight countries with five official markets including: Cambodia, Laos, Haiti, Mozambique and East Timor. The remaining markets, Cameroon and Burundi, will be in operation by the fourth quarter of 2014 and third quarter of 2015 respectively; whilst the project in Tanzania is still in the paperwork stage (to build network infrastructure).
In the first nine months of 2014, Viettel Global reported net sales of VND 10.1 trillion, in which VND 2.1 trillion is profit before tax.