Decision No. 2129/QD-TTg dated December 29, 2017 of the Prime Minister on approving the approval for plan to restructure Vietnam Posts and Telecommunications Group during 2018 - 2020

THE PRIME MINISTER 

Decision No. 2129/QD-TTg dated December 29, 2017 of the Prime Minister on approving the approval for plan to restructure Vietnam Posts and Telecommunications Group during 2018 - 2020

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to Government’s Decree No. 25/2016/ND-CP dated April 06, 2016 on Charter for organizational structure and operation of the Vietnam Posts and Telecommunications Group;

Pursuant to the Decision No. 58/2016/QD-TTg dated December 28, 2016 of the Prime Minister on criteria for classification of wholly state-owned enterprises, partially state-owned enterprises and list of state-owned enterprises undergoing restructuring in 2016 - 2020;

Pursuant to the Decision No. 707/QD-TTg dated May 25, 2017 of the Prime Minister on approval for the Project on “restructuring of State-owned enterprises, particularly state-owned economic groups and corporations during 2016 - 2020”;

At the request of the Minister of Information and Communications and Council Member of the Vietnam Posts and Telecommunications Group,

DECIDES:

Article 1. To approve the plan to restructure Vietnam Posts and Telecommunications Group during 2018 - 2020. To be specific:

I. OBJECTIVES

- Develop the Vietnam Posts and Telecommunications Group (VNPT) into a strong, dynamic, efficient and modern state-owned economic group that can reach a high level of competitiveness in both domestic and foreign markets; well perform public duties; contribute to the socio-economic development and national defense and security assurance; play a key role in developing Vietnam's telecommunications and information technology in a quick, sustainable and competitive manner, and promoting international integration.

- Restructure VNPT to develop it into a leading digital service provider in Vietnam and a digital hub in Southeast Asia and Asia. Gradually switch over from traditional telecommunication services to telecommunications, information technology and digital services according to the VNPT development strategy during 2017 - 2025.

- By 2020, achieve the average annual revenue growth of over 6.5% and average annual profit growth of over 10.8%; during 2021 - 2025, achieve the average annual revenue growth of over 7.7 % and average annual profit growth of over 11%. By 2022, the return on equity is to be equal that of other enterprises in the same business line.

II. CONTENTS

1. Business lines

a) Main business lines

- Telecommunications, information technology, multimedia and other digital products and services.

- Consulting, survey, design, installation, use, maintenance, repair, lease of telecommunications works and equipment, and information technology products.

- Research into, development, manufacturing, trading in, export and import of telecommunications, information technology and multimedia equipment and products.

b) Relevant business lines in direct service of main business lines:

- Financial investment in telecommunications, information technology, multimedia and other digital services.

- Advertising, market research, organization of conferences, seminars and exhibitions related to the main business lines; improvement and provision of human resources for telecommunications, information technology, multimedia and other digital services.

- Lease of existing buildings and land of VNPT.

2. The plan to restructure VNPT during 2018 - 2020

a) Establish VNPT - Information Technology Company (VNPT-IT), a financially dependent unit of the parent company - VNPT by restructuring departments and units responsible for management, manufacturing and sale of information technology products and services of VNPT and Telecommunications Service Corporation (VNPT-Vinaphone) in order to optimize human resources and avoid overlapping issues.

b) Merge the VNPT Hospital of Nursing - Rehabilitation (in Hai Phong city) with the Hospital of Post and Telecommunications (in Hanoi city). Exercise autonomy over the Hospital of Post and Telecommunications (after merger) and General Hospital of Post and Telecommunications (in Ho Chi Minh city) in accordance with regulations of the Government’s Decree No. 16/2015/ND-CP dated February 14, 2015 on exercise of autonomy by public service providers.

c) Restructure international trading by VNPT International (VNPT - I) as follows:

- Assign tasks and personnel of VNPT International (VNPT-I) for operation of satellites Vinasat 1 and Vinasat 2 to the Network Infrastructure Corporation (VNPT-Net).

-  Convert VNPT International (VNPT-IT) (remained after merger) into a financially dependent unit to VNPT-Vinaphone for provision of international telecommunications services and satellite services.

d) Consider establishing VNPT Global Investment Single-Member Limited Liability Company (VNPT Global) 100% of charter capital of which is held by VNPT if conditions for investment in international markets are met and the Parent Company - VNPT is equitized; ensure effectiveness, conservation and development of state capital.

dd) Keep developing VNPT-Vinaphone into a financially autonomous unit. During equitization, accounting mechanism of VNPT-Vinaphone shall be applied to ensure effectiveness and prevent loss of state capital in enterprises.

e) Improve effectiveness and restructure the enterprises having VNPT’s stakes. To be specific:
- Transfer VNPT’s stakes in the enterprises, including (1) VMG Media Joint Stock Company (VMG); (2) VNPT Electronic Payment Joint Stock Company (VNPT EPAY), (3) National Payment Corporation of Vietnam (Napas), (4) E-learning and E-entertainment Service Development Joint Stock Company (VDC-Net2E), (5) Smart Media Joint Stock Company (SMJ) to the VNPT Media Corporation (VNPT-Media) to form units responsible for research into, development and provision of digital, value-added and media services and products.

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