When the Vietnamese Government announced in 2005 that the country would speed up the equitisation of most state owned enterprises, including telecom operators, it attracted much regional and international attention and interest. The interest waned somewhat when the global financial crisis hit in 2008. Some players are still around, waiting for the equitisation process to happen.

ST Telemedia is a serious long term investor. If the equitisation process starts now, it is ready to participate in earnest. If it is further delayed, we understand and will continue to be engaged in contributing to the development of the Vietnamese telecom market by sharing experience and know-how with Vietnamese telecom operators.

Private investment should be for creating values for all concerned parties, especially shareholders. Investment in the telecommunications sector, like all infrastructure, is considered for the long term. For serious long-term investors like ST Telemedia, anytime is a good time if the valuation is fair and right for all parties. Major Vietnamese operators are now facing major challenges in rolling out new networks and offering of more value-added services to compete for subscribers and revenue. ST Telemedia has stepped up its efforts to help potential partners in the race to be profitable and be leaders in the sector. The current difficult time enables us to demonstrate that were are not just a fair-weather friend. ST Telemedia perceives that this is a good time to step up investment activities in Vietnam. 

Timing is a relative term. Countries are at different stages of development and the pace for change in each country will invariably need to be different and should be decided by the respective governments. While many foreign investors are constantly complaining about the slow pace of equitisation of Vietnamese telecom enterprises, we understand and will persist in our style of being patient and cooperative. If the government decides on further delay, we understand and will stay and continue to build relations with potential partners and contribute to the growth of the telecommunications sector in other ways. ST Telemedia has a long-term view and does not speculate on whether there will be further delays. ST Telemedia is ready and is a worthy potential partner, and will work on the timeline decided by the Vietnamese Government.

Delays in the equitisation process will definitely have some negative impacts on the Vietnamese telecom market, like shortages of needed funds for capital investment and delay in restructuring of the operators to become less encumbered in making prompt decisions as needed by the more competitive markets. Such delays do have their advantages. Telecom operations are key assets of the nation. Decisions need to be made with utmost care and consideration. Delays will enable the Vietnamese Government to gather more knowledge and information and hence avoid costly mistakes. 

ST Telemedia believes that the Vietnamese telecoms sector is overcrowded, with too many operators. There will most likely be consolidation in the next two to three years. We are keen to partner any of the operators that we believe will survive the consolidation phase. EVN Telecom has a great chance to survive the impending industry shakeout and emerge as a strong fourth operator (after MobiFone, Vinaphone and Viettel). As a serious strategic investor, ST Telemedia is interested in any of the main Vietnamese telecom operators, including EVN Telecom, who see value in having ST Telemedia as a partner.

EVN Telecom may be lacking in market share at the moment but with a 3G licence in hand it has the potential to energise its existing assets and resources to become a key player in the near future. Its parent company, EVN, has the funds and other needed resources and appears to have the determination to support EVN Telecom to grow into a significant telecom operator.