Behind ’100tr dong revenue race’ between Viettel and VNPT

Despite in the 100 trillion dong revenue race in 2010, the military-run Viettel followed behind Vietnam Post and Telecommunication Group (VNPT) as being short of 9 trillion dong, it is said that Viettel has deserved as the winner in terms of real capacity and achievements, the Dien Dan Doanh Nghiep reported on December 28.

The latest data provided by Ministry of Information and Communication (MoIC) showed that in 2010, VNPT estimated to have gained 101.569 trillion dong in revenues, a year-on-year rise of 22 percent and paid 7.855 trillion dong to the state coffer. Meanwhile, the rival Viettel expects to reach 91.134 trillion dong in revenues, surging 50 percent over 2009.

The race was set in 2010 by the two state giants. According to the initial plans, VNPT targeted to earn 94 trillion dong, up 20 percent whilst Viettel set 96 trillion dong, jumping 60 percent against one year earlier.

However, right after Viettel announced its 2010 revenue target, VNPT decided to adjust its targets up 6 trillion dong, exposing its determination to keep its top position by gaining revenues of 100 trillion dong for the first time along with ambitious others of 15-16 trillion dong in minimal profit and 8.5 trillion to 8.6 trillion dong in tax payments.

Similarly, then Nguyen Manh Hung-Deputy general director of Viettel also confirmed Viettel modified its revenue target to more than 100 trillion dong.

Experts said that VNPT had the major revenue source from two mobile networks VinaPhone and MobiFone with a combined market share of 55.41 percent in Vietnam. In addition, the firm has another revenue source from postal, broadband internet, fixed telephone services With Viettel, its 60 percent revenues come from mobile information services and others from real estate, handset distribution, post and internet.

After big non-tired efforts, VNPT reported obtaining more than 43 trillion dong in revenues, meeting 42 percent of the year’s target during first six months. Likewise, Viettel announced to go through a half of its revenue way. The race was overheated in last six months when Viettel tried to place VNPT behind.

With the current revenue structure, the win or failure of VNPT on the way to over 100 trillion dong was burdened on MobiFone and VinaPhone. Following a 10-15 percent reduction in service charges in August, VNPT then launched 100 percent promotional programmes for old customers from Sep to the end of 2010 and attracted a number of new customers.

Differently, VNPT both offered promotion programmes such as presenting additional 100 percent of scratch card value or expanding mobile business to regional countries like Laos, Cambodia and Bangladesh and launching new strategies. Accordingly, the company holds stakes in Vinaconex, Military Bank, and earns revenues from export import, real estate�

Eventually, VNPT won the race, however, real business quality of Viettel made it become the winner.

Average labour productivity of Viettel reached over four billion dong a person a year and average income was estimated at 11.7 million dong per person a month. This year, the group has developed 46.3 million new mobile subscribers and 1.17 million 3G subscribers. But, the volume of new 2-way mobile subscribers in 2010 only achieved 2.1 million, bringing total subscriber number in the whole network to 49.9 million.

With above figures, clearly in the 2010 revenue race, VNPT won with the huge revenues of 101.569 trillion dong, followed by Viettel with 91.134 trillion dong. Of course, it is needed to review taking-account methods of the giants, and finally consumers are the most beneficiaries.

The win of VNPT is absolute and easily comprehensive because its revenues came from two big mobile providers MobiFone and VinaPhone. Moreover, VNPT had gained “monopoly” 20 years ahead. Compared to the later-established Viettel, VNPT owns some advantages in experience and market share.

In fact, Viettel has proven its capacity through “big jumps” in recent years. After almost 10 years, Viettel has become the big rival of VNPT. No one believed that it took only four months for Viettel to surpass VNPT’s two mobile networks in terms of subscriber volume in Vietnam. While Viettel was accelerating, VNPT networks moved slowly. Thus, Viettel has gained certain achievements and expanded overseas. And the revenues of 91.134 trillion dong were the successful sign of the group. Analysts predicted it was inevitable Viettel could obtain the top position of VNPT in the near future. – Vietbiz24

Tags: Viettel, VNPT