Viettel Global suffers loss of VND 5000 billion despite gaining huge profit

Meanwhile, in Haiti, in recent time, Natcom (a joint venture of Viettel Global) has to  deal with harsh competition with big rival companies.

According to Viettel Global’s recent financial report, its profit was estimated at 33 million USD in the first half of 2019. However, due to low efficiency of operation in previous years, Viettel Global remains to suffer high accumulated loss while still facing with risks in several foreign markets.

Viettel Global suffers loss of VND 5000 billion despite gaining huge profit

Viettel Global lost USD 215 million in spite of gaining huge profit

According to Viettel Global Investment Joint Stock Company (VGI)’s second quarter financial report, Viettel Global’s revenue was estimated at USD 175 million which is 0.2% higher comparing to the same period in 2018. As the report shows, expenses on administration and sale of the company have increased, compared to the same period in 2018. However, due to the decrease of loss of its joint ventures, Viettel Global’s profit still rose sharply.

In the second quarter, the after-tax profit of Viettel Global was estimated at almost USD 30 billion while the company suffered loss of around USD 11 billion.

In the first half of 2019, Viettel Global’s revenue was estimated at around USD 338 million,1.7% lower than the same period in 2018. Its cost of goods sold decreased to USD 34.4 million which raised the gross income of Viettel Global to USD 120 billion.

VGI’s financial report also showed it gained USD 3.9 million because of exchange rate differences in the first half of 2019, whilst in the same period of 2018, VGI suffered loss of USD 5.1 million.

Moreover, owing to joint venture companies’ profits of estimated USD 4.8 million and suffering loss of around USD 17.6 million, Viettel Gobal’s before-tax profit was estimated at USD 54 million, while after – tax profits was at USD 32.7 million.

However, Viettel Global suffered accumulated loss of VND 5000 billion (USD 215 million).

Challenges and risks remain

Cameroon and Haiti were two challenged markets among 10 countries and territories Viettel Global invested in.

More to mention,, Nextel, a brand of Viettel Cameroon SA (joint venture of Viettel Global and Bestcam, a local company), was involved in a lawsuit As Cameroon’s media reports, the case has not been solved.

Viettel Global suffers loss of VND 5000 billion despite gaining huge profit

Nextel, a brand of Viettel Global in Cameroon

Viettel Global suffers loss of VND 5000 billion despite gaining huge profit

Natcom, a joint venture of Viettel Global in Haiti

Furthermore, according to the Haitian government’s statistics, damage of hurricane Matthew left on the country’s telecom infrastructures was valued at USD 35 billion for recovery work. Due to this loss, Natcom will have to continue investing in infrastructures in Myanmar. This will partly put pressure on Viettel Global’s income in the second half of 2019.

Viettel has been present in Myanmar since September 2016. Myanmar became the 10th foreign market of Viettel in August 2019. Mytel was the first mobile network operator that launches 5G technology. Mytel announced its market share was at 17%, placing it at the third rank in the market of . Mytel is also the most popular mobile network operator in Myanmar, according to Kantar Media, a British market research company.

However, Mytel is facing a fine on anti - competition as well as two cautions from the Post and Telecommunication Department of Myanmar. On the other hand, Mytel lost millions of USD in recent years due to some other reasons. Especially, in 2017, Mytel loss was estimated at USD 5.9 million, nevertheless, it is expected to gain profit in 2019./.

( translated by Van Nguyen )

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