No bailouts for ailing VN telecoms
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Vietnam's Ministry of Information and Communi-cations (MIC) will maintain healthy competition in the telecom market, but will not step in to save struggling firms.
Speaking at a recent conference, the head of MIC’s Telecoms Department, Phan Hong Hai, said the ministry would facilitate the development of telecom firms but would not rescue them from bankruptcy.
“Ailing firms will withdraw from the market or die naturally as dictated by the laws of a market economy,” Hai said.
However, Hai confirmed MIC’s strategy to keep at least three competent telecom firms in order to maintain healthy competition. The move follows recent fluctuations in the telecom market that has seen a number of firms fold and others fighting for survival.
The most recent was the withdrawal of Dong Duong Telecom last week after its licence was revoked by the ministry due to sluggish implementation.
Faltering provider S-Fone made most of its employees in Hanoi redundant in July to end its mechanism and change to a limited liability company.
