Vodafone signals Vietnam interest

By Andrew Parker in London and Amy Kazmin in Bangkok

FROM THE FINANCIAL TIMES

Vodafone on Sunday signalled it could be interested in investing in a mobile phone operator in Vietnam, as part of the UK telecoms group’s strategy of expanding in emerging markets.

The world’s largest mobile group by revenue confirmed it had opened an office in Hanoi in June, so that it can track Vietnam’s privatisation plans.

The communist government’s plans are expected to result in opportunities to buy minority stakes in some of Vietnam’s state-controlled mobile operators, possibly as early as this year.

“Vodafone’s interest in a potential stake in a Vietnamese mobile operator is at a very early stage,” said the company. “We have opened an office in Hanoi to monitor the situation.”

Vodafone is likely to be among several foreign mobile groups interested in Vietnam because of its growth potential.

Only 21 per cent of the population have mobiles, according to Wireless Intelligence, the research firm.

Vodafone is seeking revenue growth in emerging markets to offset a slowing top line performance in its core European businesses.

In May, Vodafone completed its third-largest transaction ever after paying $10.9bn for control of Hutchison Essar, India’s fourth-largest mobile operator. India is the world’s fastest-growing mobile market.

Arun Sarin, Vodafone’s chief executive, said in May it would continue with a policy of selective acquisitions in emerging markets.

He said Vodafone could be interested in buying the 50 per cent that it does not own of Vodacom, South Africa’s largest mobile operator.

SOURCE: THE FINANCIAL TIMES