II.    ORGANIZATIONAL STRUCTURE

• Viettel Military Industry and Telecoms Group is organized and operates under the model of Holding Company - Subsidiaries. The management structure of Viettel includes: Chairman and General Director, Deputy General Directors, Surveyors, Chief Accountants and Assisting Apparatus consist of professional boards.
• Members' Council are not included in VIETTEL; therefore, all strategic orientations, plans, major projects, personnel and important affairs of the Group shall be decided by the Group's Party Committee.
• Telecommunications and high-tech manufacturing research are the business lines directly managed by the Holding Company. The Group has an Assisting Apparatus and shared service centers (HR, finance and procurement).
• The subsidiaries of the Group are organized by blocks: (1) Viễn thông trong nước, (2) Viễn thông nước ngoài, (3) Nghiên cứu sản xuất, (4) Công nghệ thông tin và an ninh mạng, (5) Truyền thống.
• VIETTEL's production and Business operations are deployed in 63 provinces/cities in the country and 10 foreign markets. In which, its apparatus is circulated to the district level; Its sales channel system and distribution network are circulated to the commune level.

III.    LIST OF COMPANIES HELD BY THE GROUP OVER 50% OF AUTHORIZED CAPITAL
1.    Accounting units dependent on the Holding Company (21 focal points and 63 Viettel in provinces/cities)
•    Viettel Telecom Corporation.
•    Viettel Network Corporation.
•    Viettel Property Company
•    Viettel Media Company.
•    Viettel Academy.
•    Viettel Research and Development Institute.
•    Viettel Aerospace Institute.
•    Viettel Cyber Security.
•    Viettel Software Center 1
•    Viettel Cyberspace Center.
•    Viettel High-tech Product Sales Center.
•    Viettel Network Technologies Center.
•    Viettel Smart Device Research Center.
•    Viettel Microchip Research and Development Center.
•    Viettel Sport Training Center.
•    Project Management Unit.
•    63 dependent units in 63 provinces/cities: Viettel Province/City.
•    Branch of Military Industry - Telecoms Group in the Republic of South Africa.
•    Representative Office of Military Industry - Telecoms Group in the Republic of Haiti.
•    Representative Office of Military Industry - Telecoms Group in the Republic of Kenya.
•    Representative Office of Military Industry - Telecoms Group in the Democratic Republic of Ethiopia.
2.    Viettel's Subsidiarie
a)    06 subsidiaries owned by Viettel with 100% authorized capital
•    Viettel Trading and Import-Export Company Limited.
•    M1 Communication Limited Liability Company
•    M3 Communication Limited Liability Company
•    Viettel Technology Investment One Member Co., Ltd.
•    Viettel America Company (in the US).
•    VTE Technologies Sarl Company (in France).
b)    08 subsidiaries owned by Viettel from 50% to less than 100% of authorized capital
•    Viettel Post Joint Stock Corporation.
•    Viettel Global Investment Joint Stock Company.
•    Viettel Construction Joint Stock Corporation.
•    Viettel Consultant and Design Joint Stock Company
•    Cam Pha Cement Joint Stock Company
•    Viettel-CHT Company Limited
•    Viettel Peru S.A.C
•    Viettel Russia Company

IV.    HISTORY AND DEVELOPMENT
1.    Milestones
•    On June 1st, 1989, the Electronics and Communication Equipment Corporation (SIGELCO) was established under the Communications Command, Ministry of National Defense. This is a historic milestone marking the birth of Viettel, since June 1st has become the traditional annual day of Viettel.
•    On July 27th, 1993, based on the Government Office's Notice No. 198/TB of July 13th, 1993 the Prime Minister's approval for the re-establishment of State-owned enterprise, the Ministry of National Defense issued Decision No. 336/QD-QP on the establishment of the Electronics and Communication Equipment Corporation, its transaction name is SIGELCO, its Head Office is located at 16 Cat Linh Street, Hanoi City.
•    On July 14th, 1995, in compliance with the Prime Minister's Decision, the Ministry of National Defense (MoND) issued Decision No. 615/QD-QP, officially change the company's name to Military Electronics and Telecommunications Company, VIETEL in short (At this time, the phrase has only 01 letter T).
•    On April 27th, 2004, MoND issued Decision No. 51/QD-QP: from July 1st, 2004, the Military Telecommunications Company was moved from the Signal Corps to the MoND under the name of Military Telecommunications Company, VIETEL in short.
•    On March 2nd, 2005, Prime Minister Phan Van Khai signed the Decision on the establishment of Military Telecommunications Corporation It was a milestone affirming a new development step of the Corporation in terms of scale, capacity and experience in the field of telecommunications (from a Company to a Corporation).
•    On April 6th, 2005, MoND issued Decision No. 45/2005/BQP on the establishment of Military Telecommunications Corporation, the international transaction name in English is VIETTEL CORPORATION, VIETTEL in short.
•    On December 14th, 2009, the Prime Minister signed Decision No. 2078/QD-TTg on the approval of the Pilot Project on the establishment of the Military Telecommunications Group and the Decision No. 2079/QD-TTg on the establishment of the Military Telecommunications Group.
•    On July 19th, 2017, Viettel was officially recognized by the Government as a Defense and Security Enterprise under the Decision No. 1059/QD-TTg.
•    On January 5th, 2018, Prime Minister Nguyen Xuan Phuc approved Decree No. 05/2018/ND-CP on the Organization and Operation Charter of the Holding Company of Military Industry – Telecommunications Group.
2.    Milestones for the development of post and telecommunications business services
•    July 1997: Deployment of postal services.
•    October 2000: Deployment of 178 long distance calls, VoIP technology.
•    October 2002: Launch of Internet service.
•    September 2003: Deployment of landline telephone service.
•    October 2004: Launch of mobile phone service.
•    March 2007: Deployment of wireless landline service.
•    February 2009: Official launch of Metfone mobile services in Cambodia
•    October 2009: Official launch of Unitel mobile services in Laos
•    March 2010: Official launch of 3G service in Vietnam.
•    September 2011:    Official launch of Natcom mobile services in Haiti.
•    May 2012:    Official launch of Movitel mobile services in Mozambique
•    March 2013:    Official launch of Telemor mobile services in East Timor.
•    September 2014:    Official launch of Nextel mobile services in Cameroon.
•    October 2014: Official launch of Bitel mobile services in Peru.
•    March 2015: Official launch of Lumitel mobile services in Burundi.
•    October 2015: Official launch of Halotel mobile services in Tanzania.
•    January 2017: Obtaining a business license in Myanmar.
•    April 2017: Deployment of 4G service in Vietnam.

V.    DEVELOPMENT GOALS BY 2020
Overall goal: Development of Viettel into a powerful global telecommunications and high-tech industry Group, becoming one of Top 20 Telecom Operators in the World.
•    Reaching Revenue from VND 300,000 - VND 350,000 billion, with a growth rate of 6% - 10%/year; Profit from VND 46,000 - VND 50,000 billion.
•    Administration and Management: Reform the system of mechanisms and policies to match the organizational model of a Global Group. Shift management from evaluation of results to evaluation of productivity, quality and efficiency.
•    Domestic telecoms: Invest in 4G/5G networks covering the whole country, popularize data services; 01 smartphone for each resident, 01 fiber-optic line for each household is the foundation for building a digital society, smart and booming digital services; apply telecoms - IT services to all aspects of social life.
•    Foreign Telecoms: Expand the investment market with an estimated population of 500 million people; Ranked in the top 10 global telecoms companies.
•    Information Technology - Cybersecurity - Cyberspace: Combination of Telecommunications, IT, Cybersecurity, cyberspace: Act as a platform for e-Government; Provide solutions for Enterprises; Play a central role in booming cybersecurity services in Vietnam, creating a cybersecurity industry; Provide services of cybersecurity, mastering cyberspace, ensuring national security.
•    High-tech research and production: develop research and production to become a High-Tech Defense Industry Complex; Master technology, manufacturing all kinds of high-tech telecommunications equipment for domestic and foreign markets.
•    Traditional sectors: Promote and develop breakthrough and take the Group global by following activities: Commerce and E-commerce, Postal - Logistics, Construction Works and Telecoms Infrastructure Management.
 

VI.    RESULTS IN 2017 AND GOALS IN 2018
1.    Results in 2017
1.1.     Results of the implementation of the main economic indicators 
(Currency: VND million)

1.2.     Main missions
a)    Administration and Management
Viettel Group is a mobile network operator with a customer-centric business model. Our operations are lean and flexible so we can deliver an exceptional customer experience at low cost. In 2017, Boston Consulting Group (BCG) and Hay Group - the global consulting firms helped Viettel transform to become a global telecoms industry group, which presents enormous business opportunities. The new model has been designed to emphasize the autonomy of business units, the Group is responsible for leading in terms of strategy and knowledge, reducing the number of layers, overlap between units, thereby forming business units at customer segments, redesigning customer contact processes, introducing new technologies, automating processes to increase customer experience. Creativity centers were developed to stimulate the generation and implementation of new ideas. The new salary mechanism was developed with internal fairness to encourage the work spirit of employees, paying salary by the value created for the Group.
b)    Telecommunications
•    Domestic telecoms: Viettel continued to prioritize investment in expanding and recreating its network infrastructure in a modern direction with a smart and broadband infrastructure platform. Transformed from narrowband data networks to broadband and ultra wide data networks. In 6 months, Viettel has covered the largest 4G network in Vietnam from communes to cities, becoming the first operator to launch 4G services, covering 95% of the urban population and 90% of the national population. The core network system has switched to using equipment manufactured by Viettel or European equipment for high quality services, network safety, national security, ready for Industry 4.0.
•    Foreign Telecoms: Viettel officially received a Business License in the Myanmar, bringing the total number of countries Viettel invested in and run business in 10 markets in 03 continents with a scale of 235 million people. In 2017, Viettel continued to maintain its position as an exclusive company in Vietnam with revenue from foreign investment exceeding billions of dollars. Focusing on developing a long-term philosophy with Corporate Social Responsibility, VIETTEL has been effectively implementing Internet programs for schools, programs to support health care, the poor, modernization of transmission lines for the Government, etc. in each invested country.
c)    Information Technology, Cybersecurity, Cyberspace
    Information Technology
•    Viettel successfully developed and put into practice their own data analysis systems as foundation for business administration and operation Most of the Group's important IT systems were actively developed by VIETTEL, saving hundreds of millions of USD; at the same time, easily improved and upgraded to be suitable for each market that VIETTEL invests in.
•    VIETTEL has promoted the application of IT in the activities of the Government's agencies and businesses with national-scale projects such as: Population National Database Project, National Electronic Civil Status Database, Nationwide Open Source Project, computerization of healthcare, education, etc. In 2017, many social projects were implemented extensively and were highly appreciated by the Government (SMS-based vaccination reminder in 63 cities and provinces, Medical examination and treatment management, Health Insurance Payment, Smart City Project with 14 provinces) and started to export many IT products and services go abroad.
•    VIETTEL's IT products have always focused on the practical needs of the market, world trends as well as industry and international standards. The Group has affirmed its value and brand through prestigious awards in the domestic and international IT field such as Sao Khue Award, ASEAN-AICTA ICT Award, IBA Stevie Awards, IT World Awards, etc.
Cybersecurity, Cyberspace
•    Thanks to thousands of specialized Information Security Engineers, VIETTEL has developed and mastered many products such as:
•    National Firewall System; Centralized and Comprehensive Cybersecurity Solutions operating 24x7 for networks of telecommunications, server, and office.
•    Spam blocker/Antispam (control the distribution of unwanted messages). VIETTEL's products and solutions have been put into use by many agencies/units.
•    By execution of contracts to provide Information Security products and services with many potential customers from Government's agencies, localities, large enterprises (Vietnam Airlines, Vinamilk, Office of the National Assembly, etc.) Viettel has proven its capacity with major customers.
d)    Production Research: Viettel has mastered and produced almost all core telecoms network systems and deployed them on Viettel's network both at home and abroad (consist of eNodeB, vMSC, vSMSC, vCRBT, etc.), especially with an VTTEK Online Charging System vOCS 3.0 (it can be thought of as the heart of a telecommunication network architecture), which has put Viettel on the list of very few manufacturers in the world that can do this.
e)    Traditional sectors: Viettel continued to maintain a sustainable growth rate, successfully completed the set targets and objectives. In addition, the Group also made many important strategic shifts such as: shifting the construction and installation of telecoms infrastructure to exploiting telecoms infrastructure, and strongly shifting to an e-commerce logistics platform. 
With the above achievements, in 2017, Viettel completed the targets assigned by the Ministry of Defense, becoming one of the state-owned enterprises with the best profits - The most valuable brand - The largest tax payer.
Social responsibility: In 2017, Viettel participated in implementing many social security programs and activities with profound meanings such as: National Target Programs for New Rural Development and Sustainable Poverty Reduction Support Program  in the 2016-2020 period; The “Trai tim cho em” (Operation Healthy Heart) programme; Internet to Schools; “Vi em hieu hoc” (Because I am studious); “Grateful to people with meritorious services to the revolution, Vietnamese Heroic Mothers and Wounded and Sick Soldiers” Supported 3 poor districts under Resolution 30a; Supported for disaster recovery; etc. with a total support budget of nearly VND 200 billion.
1.3.     Results of Corporate Renewal & Restructuring
a)    Renewal, consolidation and restructuring of subsidiaries
In 2017, Viettel cooperated with Boston Consulting Group (BCG) to design an organizational model of the whole Group towards lean, flexible and customer-centric:
•    Agencies sector: lean apparatus, focusing on control tasks, strategic orientation, forming shared service centers.
•    Domestic telecommunications sector was divided into 2 independent divisions: B2C (Business to Customer) division, organized throughout each customer segment, digitizing processes and improving analytical capacity; B2B (Business to Business) centralized IT resources for enhancing sharing, coordination and improving the quality of products and solutions for corporate customers. Reorganized the Viettel Provincial/City Branch by concentrating resources for the Sales Sector, streamlined the Management/Supporting Sector, reduced the number of management layers from 3 to 2, adjusted salary structure accordingly.
•    Engineering sector: Organized into a Network Company providing the best customer service and experience in both domestic and foreign markets; Improved capacity to research technical trends in the world and enhanced creativity; Deployed outsourced operation and exploitation of the access network layer for improving service quality, network KPIs and operating more efficiently, making the Holding Company leaner and more professional.
b)    Enterprise Equitization and Investment Divestment 
•    According to the Group restructuring project for the period 2013-2015 (Decision No. 753/QD-TTg dated May 17th, 2013), Viettel Group has no any enterprises on the list to be reorganized and equitized.
•    By the end of 2016, Viettel Group has completed divesting 11/11 companies with a total value of VND 3,876,922 million, 1.2 times higher than the investment value (VND 3,186,860 million), capital preservation with a surplus of VND 690,063 million.
•    In 2017, Viettel Group has not divested any more investments.
2.    Mission Orientation in 2018
2.1.     Goals & Action Guidelines in 2018
•    Goals: Keep aiming high to maintain double-digit growth
•    Consolidated Revenues VND 235.4 trillion
•    Consolidated Pre-Tax Profit: VND 39.7 trillion
•    Action Guidelines: “The hardest job - The best person - The latest technology”.
•    Happy version: "Serving the Fatherland, solving social problems, bringing a good life to everyone is Viettel's happiness".
2.2.     Main missions
- Administration and Management
•    Maintain operation of Viettel 2.0 model: A smart, lean and professional corporation with a customer-centric business model for efficiency. Enhance autonomy for units, the Group focuses on the management of strategy, goals, plans, finance and senior human resources; Monitor the whole Group via the Data Analytics Center and digital transformation.
•    Implement a new salary mechanism throughout the Group by the market mechanism, pay wages at the value created to increase labor productivity and business efficiency.
•    Submit to the Prime Minister for approval the Group's development strategy until 2020.
-    Telecommunications
•    Domestic telecoms: Promote digitization of activities; Develop a centralized database system for business exploitation to each customer by Bigdata tools; Improve and develop the e-government ecosystem; transform the traditional infrastructure into an expanded infrastructure, creeping into every corner, towards the infrastructure for IoT/5G; operate and switch from network infrastructure (NOC) to service (SOC), individual to each service and to each customer; deploy tools to improve the rate of automation of cultural and economic works.
•    Foreign Telecoms: Official launch of mobile services in Myanmar.
-    Information Technology, Cybersecurity, Cyberspace
•    Invest heavily in new technology platforms to promote the country's electronic payments; bring Viettel brand IoT service to the market; deploy National Knowledge System products in practice.
•    Establish 4.0 infrastructure platform for ministries, branches and localities; lead the 4.0 trend with health, education, transportation, and e-Government products.
•    Research and develop new information security products and solutions based on AI, Machine Learning, Cloud technology platforms, etc.
•    Continue the digital transformation; deploy cloud computing infrastructure, Datalake infrastructure to improve the data analysis capacity of the units for management, exploitation and sharing of common data within the Group; deploy the Dashboard system to analyze data for sectors in the Group to ensure a tools to monitor and evaluate the performance of each Sector.
-    Production and Research: 
Form the High-Tech Industry Corporation; Bring Industry 4.0 into research and production; invest heavily in LAB, modern technical facilities; Master many new and core technologies. Open technology research companies abroad, combine with market development of high-tech products, promote exports.
- Traditional sectors: Continue to maintain the growth rate, develop sustainably, reach out to the world, promote the growth of new industries, reduce dependence on traditional industries: Organize the operation and exploitation of telecommunications infrastructure to foreign markets invested; deploy telecommunications and IT sales activities, promote e-commerce business, etc.