France Telecom Interested in Vietnam Investment

France Telecom is reported to be interested in buying a substantial stake in Vietnam's second-largest mobile phone service provider, MobiFone - according to local media. MobiFone says that it has short-listed six potential foreign firms to advise it on a stock market floatation for next year. Following the privatisation, MobiFone's parent company, the state owned Vietnam Posts and Telecommunications (VNPT) will reduce its stake to a third, with one third floated and the remainder sold to a strategic investor.

"We hope to participate with the highest stake possible," reported the the state controlled, Dau Tu newspaper, citing France Telecom CEO Didier Lombard, adding "Vietnam is a market with potential for growth. Moreover, when we seek the partnership we aim to build a lasting relationship with a long-term vision,"

Vodafone also recently opened an office in Vietnam to consider possible investments in the country's fast growing mobile phone market.

Figures from The Mobile World subscriber database shows that Vietnam is estimated to have some 22.3 million subscribers, which is more than double the figure a year ago. Despite the growth, market penetration still stands at just 26%.

Posted to the site on 14th August 2007