VNPT-VinaPhone, VNPT-Media to merge into parent company VNPT

Telecommunication Services Corporation (VNPT-VinaPhone) and Communications Corporation (VNPT-Media) will be merged into their parent company, Vietnam Posts and Telecommunications Group (VNPT).

A document signed by Deputy Prime Minister Ho Duc Phoc on Friday approved the Ministry of Finance's proposal on the move, based on the government's Decree 23/2022/ND-CP which governs the organization and restructuring of 100% state-owned enterprises.

The merger aims to streamline operations, enhance management efficiency, and optimize the use of public investment.

In 2024, VNPT recorded total revenue of VND58.54 trillion ($2.24 billion), with the parent company contributing nearly VND42 trillion ($1.6 billion), equivalent to 100.1% of the year's target and a 7% increase over 2023.

The group's consolidated pre-tax profit reached nearly VND6.09 trillion ($233 million) in 2024, with the parent company earning nearly VND4.57 trillion ($174.8 million), equivalent to 103.3% of the plan and reflecting a 3% year-over-year rise.

The group contributed over VND5.48 trillion ($210 million) to the state budget in 2024.

According to a VNPT executive, although the 7% revenue growth may appear modest, it is particularly significant given the increasingly challenging market conditions.

These include shifting regulatory policies, restrictions on issuing new SIM cards through agents, and a noticeable slowdown in public investment in digital transformation projects.