Friday, August 17, 2007

Vietnam's Viettel sets sights on Laos, Cambodia

09:14' 17/08/2007 (GMT+7)

VietNamNet Bridge - Viettel, the military-owned mobile service provider, said last week that it had completed negotiations to become a founding share-holder in two Cambodia-based companies.

Viettel will invest US $1.2 million, equivalent to a 8% stake, into the Vietnam-Cambodia Joint Stock Bank. The bank’s primary aim is to provide financial services to Vietnamese companies operating in Cambodia.

Viettel will also invest VND 120 billion (US $7.5 million), representing 5% of charter capital, into EVN-Cambodia JSC, which will construct hydroelectric plants on the Mekong river.

Viettel’s staff will invest VND 48 billion into EVN-Cambodia.

According to Nguyen Duc Quang, deputy head of foreign investment at Viettel, the mobile service provider is the first Vietnamese telecom company to invest directly abroad.

Viettel is also finishing negotiations with Laos Asia to set up a joint stock company to supply telecom services in Laos.

“We would contribute 49% of the company’s charter capital,” Quang said.

Last year, Viettel set up Viettel Cambodia, a wholly owned subsidiary and the company’s first foreign venture.

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