VNPT transfers 17,000 employees to the business division.

ICTnews - Mr. Tran Manh Hung, General Director of VNPT, said that VNPT has transferred 17,000 out of a total of 36,000 telecommunications employees in provinces and cities to the business sector and completed the restructuring in 63 provincial and city telecommunications companies.

VNPT has transferred 17,000 out of a total of 36,000 telecommunications workers from provinces and cities to the business sector.

According to Mr. Tran Manh Hung, General Director of VNPT, the restructuring of 63 provincial and city telecommunications companies has been completed, transferring 17,000 out of a total of 36,000 employees to the business sector. After being reorganized, the provincial and city telecommunications companies are operating quite well under the new model.

Mr. Tran Manh Hung proposed that the Ministry of Information and Communications expedite the process for the Government to approve the plan to establish three General Corporations starting from January 1, 2015. Establishing these new General Corporations at this time would be advantageous in terms of the fiscal year. In addition, he requested that the Ministry of Information and Communications allow VNPT to pre-arrange some of its subsidiary companies to shorten the timeframe while awaiting the Prime Minister's decision.

Responding to this issue from VNPT, Minister of Information and Communications Nguyen Bac Son said that the Prime Minister requested the Ministry of Information and Communications to incorporate the opinions of relevant ministries and agencies to develop a plan for establishing three corporations under VNPT for submission to the Government for approval.

Previously, Minister Nguyen Bac Son stated that, according to Decision No. 888 issued on June 10, 2014, by the Prime Minister approving the VNPT Restructuring Plan for the 2014-2015 period, three units – VNPT Net, VNPT Media, and VNPT VinaPhone – would operate as single-member limited liability companies. However, transforming these three single-member limited liability companies into three corporations would give VNPT a structure similar to Viettel, allowing for equal competition in all aspects, including organization.

“VNPT needs to strive to become the leading telecommunications and IT group in the country, providing diverse and integrated IT and telecommunications service solutions with high quality and reasonable prices, based on competition that meets the diverse demands of life and consumers. VNPT will develop business in the following service categories: mobile services, broadband, fixed-line services, IT value-added services, communication services, telecommunications industry, IT… VNPT needs to maintain a leading role in Vietnam's telecommunications sector, contributing to the formation of a sustainable telecommunications market with healthy competition, contributing to promoting socio-economic development and national defense and security, and implementing industrialization and modernization of the country,” Minister Nguyen Bac Son said.

Speaking with ICTnews, Mr. Tran Manh Hung said that VNPT's operations have started to function well after implementing a new management mechanism using economic measures. In this mechanism, VNPT grants local VNPT units the autonomy to decide on the use of available investment capital allocated annually by the Group, in accordance with the Group's development orientations. Thus, local units are responsible for the business efficiency of their investment capital. The Group focuses on closely monitoring the effective use of investment capital by these units. With this investment capital allocation mechanism, the Group will eliminate the "request-and-grant" mechanism, and units will be more flexible in adjusting their investment pace according to market conditions.

According to Mr. Tran Manh Hung, with VNPT's new structure, provincial and city telecommunications units will separate their business, sales, and network operations. Currently, more than 20 units have implemented this separation of business and sales according to the new structure. When provincial and city telecommunications units separate their business and network operations, all these economic mechanisms will shift from internal to independent accounting mechanisms.

Mr. Tran Manh Hung affirmed that the new management mechanism will eliminate the practice of directors remaining in their positions until retirement. Instead, heads of units who fail to ensure business efficiency will be dismissed to make way for competent replacements. This mechanism will motivate all units within VNPT to strive for efficient production and business performance.

According to ICTNews