Viettel ranks second in the race for 100tr dong revenue in 2010

Surpassing Viettel in the 100 trillion dong race in 2010, the Vietnam Post and Telecommunications Group (VNPT) continues setting up an aggressive plan by raising revenue target to 130 trillion dong in 2011. Viettel, for a first time, set only a modest target of 109 trillion dong.

Although identifying that Vietnam telecommunications market is entering a saturation phase and competition among businesses would become more intense, VNPT still maintains high growth revenue target. In 2011, the group plans to increase revenue by 28 percent compared to 2010, equivalent to 130 trillion dong. Of that, profit will account for 11.800 trillion dong, and State budget contribution will be from 8.450 trillion dong.

Previously, VNPT only set target of about 120 trillion-dong revenue in 2011, but when Viettel hinted about its ambitious plan of 130 trillion dong revenue, VNPT has increased the target by 10 trillion dong.

Leaders of VNPT said the group’s objective in 2011 is to maintain the first position in the market in providing telecommunications and information technology services in Vietnam. This position had been threatened usurpation in 2010 by Viettel.

Viettel, with lower revenue target in 2011, said the main source of revenue in 2011 of the group is primarily from mobile telecommunications services, overseas investment, and terminals manufacturing.

In 2010, Viettel obtained $161 million revenue from Cambodian market, up by 2.8 times compared to 2009; $61 million revenue from Laos market, up by 4.5 times over 2009. This group is expanding investment into further and more difficult markets such as Haiti (Americas) and Mozambique (Africa).

Nevertheless, after a year racing for the first position, Viettel has become more realistic while reducing the target to an achievable level. Meanwhile, VNPT has confirmed its number one position and determined to obtain the expected target.

The race for 100 trillion-dong revenue was started by the two telecommunications giants VNPT and Viettel in early 2010. In the early days of the year, the two groups constantly adjusted their targets from 94 trillion dong to 96 trillion dong, then finalised the revenue target at 100 trillion dong by the end of fiscal year 2010.

However, with actual revenue of just over 90 trillion dong, Viettel ranks the second, while VNPT in late December 2010 announced that the group gained over 101 trillion dong revenue and contributed 7.855 trillion dong to the State budget.

Specialists said, after obtaining the second position, Viettel’s revenue target seems to be closer to the actual situation of the market. However, a rather knowledgeable expert in telecommunications market said striving to reach revenue threshold of 130 trillion dong or even 150 trillion dong is not difficult for both VNPT and Viettel. The point is how the business efficiency and profit of these two giants would be in 2011, when the market is said to be in deep saturation stage. – Vnexpress

Tags: Viettel

Posted by VBN on Jan 19 2011. Filed under Technology, Telecommunication. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry