CHT to set up subsidiary in Vietnam

Chunghwa Telecom (CHT) on April 27 announced the establishment of a wholly owned subsidiary in Vietnam via an investment of NT$160 million ($5.1 million). Operations are scheduled to kick off in the third quarter of 2010.

CHT set up offices in Ho Chi Minh and Hanoi in 2006, as well as a joint venture with Vietnam’s telecom carrier Viettel, Viettel-CHT Company Limited (Viettel IDC), in 2008 to provide Internet data centre services, CHT indicated.

The successful operation of the joint venture shows there is a large market potential in Vietnam, and therefore CHT will set up a subsidiary through combining the two existing offices to tap the market, CHT explained. Because Vietnam has not yet allowed enterprises with a 100 percent foreign stake to obtain telecom operating licenses, the subsidiary will operate information and communication technology business which do not require licenses, such as smart energy saving, 3G value-added services and intelligent transportation management for cars, for the time being, CHT pointed out.

CHT posted net EPS of NT$4.51 for its 2009 operations, and its board of directors has decided to distribute a cash dividend of NT$4.06.

Digi Times

Tags: HCM City High-tech Park, Vietnam IT, Vietnam technology

Posted by VBN on Apr 30 2010. Filed under Technology. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry