Brian Jeffrey
On June 25, the government approved a proposal from the Ministry of Finance to implement regulations outlined in Decree No. 23, which pertains to the formation, reorganization, ownership transition, and transfer of rights in state-owned enterprises. This initiative aims to reorganize subsidiaries of the Vietnam Posts and Telecommunications Group (VNPT) by integrating the Vietnam Telecommunications Services Corporation (VNPT-Vinaphone) and the Media Corporation (VNPT-Media) into the parent entity, VNPT.
In terms of decision-making authority, the Board of Members at VNPT will be tasked with approving the merger of VNPT-Vinaphone and VNPT-Media into VNPT, following the endorsement of the merger strategy by the Prime Minister, as recommended by the Ministry of Finance (which represents the state’s stake in VNPT).
The Ministry of Finance has three days from the approval of this resolution to compile and forward a report to the Prime Minister, based on documents submitted by VNPT and earlier input from the Commission for the Management of State Capital at Enterprises. The Ministry will oversee the merger process and ensure that state capital in the enterprise is utilized effectively.
Throughout the merger, VNPT’s Board of Members will play a crucial role in managing the entire procedure to guarantee adherence to the documents and proposals previously submitted to the Ministry of Finance. The objective is to simplify the organizational framework, boost efficiency, and enhance the utilization of capital. The Board will also hold responsibility for the merger proposal and assess its success.
