II. HISTORY AND DEVELOPMENT

1. Milestones

• On June 1^st, 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 1^st has become the traditional annual day of Viettel.
• On July 27^th, 1993, based on the Government Office's Notice No. 198/TB of July 13^th, 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 14^th, 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 27^th, 2004, MoND issued Decision No. 51/QD-QP: from July 1^st, 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 2^nd, 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 6^th, 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 14^th, 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 19^th, 2017, Viettel was officially recognized by the Government as a Defense and Security Enterprise under the Decision No. 1059/QD-TTg.
• On January 5^th, 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 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: Launching 3G service in Vietnam.
• September 2011: Official launch of Natcom mobile services in Haitian
• 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.
• April 2017: Deployment of 4G service in Vietnam.
• June 2018: Official launch of Mytel mobile services in Myanmar.
• May 2019: Viettel made the first 5G call in Vietnam.

III. LIST OF COMPANIES HELD BY THE GROUP OVER 50% OF AUTHORIZED CAPITAL

1. Accounting Units dependent on the Holding Company

• Viettel Telecom Corporation.
• Viettel Network Corporation.
• Viettel Business Solutions Corporation.
• Viettel High Technology Industries Corporation (VHT)
• Viettel Digital Services Corporation (VDS)
• Viettel Asset Management Company.
• Viettel Media Company.
• Viettel Cyber Security Company.
• Viettel Aerospace Institute.
• Viettel Cyberspace Center.
• Viettel Sport Training Center.
• Viettel Academy.
• Southern Representative Office.
• Representative Office of Military Industry - Telecoms Group in Singapore.
• Representative Office of Military Industry - Telecoms Group in the Republic of Haiti.
• Representative Office of Military Industry - Telecoms Group in the Republic of Kenya.
• 63 dependent units in 63 provinces/cities: Viettel Province/City.

2. Viettel’s Subsidiaries
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).

08 subsidiaries owned by Viettel from 50% to less than 100% of authorized capital
 

• Viettel Global Investment Joint Stock Company
• Viettel Post Joint Stock Corporation
• 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. RESULTS OF CORPORATE RENEWAL & RESTRUCTURING IN 2019
1. Arrangement, consolidation and restructuring of subsidiaries

a. The establishment, the organization, the rearrangement of subsidiaries in which Viettel holds shares and dominant capital contributions

• Established an enterprise specialized in the automated electronic toll collection (ETC) system, which provides non-stop toll collection service: On April 29^th, 2020, Deputy Prime Minister Truong Hoa Binh approved Decision No. 29/QD-TTg approving the addition of ETC project enterprises to the list of over 65% subsidiaries of Viettel.
• Restructuring of M1 Communication Limited Liability Company and M3 Communication Limited Liability Company: Viettel has completed collecting comments from ministries and sectors for the project, which is currently being completed and submitted to the Ministry of National Defense.

b. The establishment, organization and rearrangement of dependent accounting units

In 2019, Viettel continued to consolidate its apparatus at all levels, focusing on customer-oriented, flexible, streamlined, creative and professional:
 

• The domestic telecommunications apparatus restructured by channels in order to professionalize and increase the efficiency of sales channels; Optimized the organizational model, functions, tasks, and personnel of the departments of the Group's agencies and a number of subsidiaries.
• 3 Corporations/Company (Cybersecurity Company, High-Tech Industry Corporation, Digital Services Corporation) was established.

2. Enterprise equitization and investment divestment

a. Enterprise equitization: According to the Group Restructuring Plan for the period 2016-2020 approved by the Prime Minister under Decision No. 18/QD-TTg dated March 3rd, 2018, Viettel has no any enterprises on the list of upcoming implementation of the restructuring and equitization.

b. Investment divestment: Viettel has developed a plan to reduce and divest capital with each investment, specifically:

• Reduced capital in subsidiaries from the current holding rate to over 50% of capital until the end of 2020.
• Divestment of investment outside the industry: According to the restructuring plan, Viettel has established 03 units to divest, of which Vinaconex completed divestment in 2018.

V. RESULTS IN 2019 AND GOALS IN 2020
1. Results in 2019

 a. Results of the implementation of the main economic indicators

Currency: VND million

NO.   ITEMS                          GROUP               HOLDING COMPANY

1       Total Revenue:               253,048,799          176,998,545

2       Consolidated Revenue:    145,433,667          102,030,879

3       Pre-Tax Profit:               38,176,022           38,228,894

4       Profit after tax:               29,809,037           30,601,764

5       Equity:                          145,879,440          149,981,973

6       Authorized capital:          140,939,463          140,939,463

7       Payables to State Budge: 38,100,352           36,004,478

8       Average income of employees (VND Million/person/month):    27.3   35.5

  b. Results from the Main Missions
 

• Promoted internal digital transformation and provided digital products/services to customers, achieved the transformation goal from a telecommunications company into a digital service provider (Pioneer in testing 5G services; Building IT solution application platform for Government, Ministries/sectors and large enterprises; Viettel pay digital bank, etc.).
• Maintained its market share of mobile subscribers, continued to affirm its leading position in cybersecurity in Vietnam with an ecosystem of products provided to the Government/Ministry/Industry, and large enterprises.
• Mastered the research and production of telecommunications infrastructure equipments and put them into deployment on Viettel's network both at home and abroad (types of PBXs, SMS, packet switching, charging, 4G base stations, access equipment, etc.). In 2019, Viettel focused its research and development resources on BTS stations and chips for 5G.
• Implemented the holding company's outsourcing (OS) for simple services, optimizing costs and human resources. Developed a recruitment strategy and synchronous mechanisms and policies to attract and retain high-quality personnel.
• Participated in implementing many programs and activities on social security with profound and pervasive meanings such as: National target program on new rural construction, sustainable poverty reduction in the period 2016-2020;

With the above achievements, in 2019, Viettel has completed the targets assigned by the Ministry of National Defense, maintaining its position as the country's leading economic group, occupying the most important positions in the Enterprise sector: (1) Top 10 Most Profitable Businesses, (2) Most Valuable Brand, (3) Largest CIT Payers; 1st in Southeast Asia, 9th in Asia and 28th in the world's top 150 most valuable telecoms providers in 2020 with its brand value of USD 5.8 billion; Became one of the 500 largest global brands.

2. Mission Orientation in 2020

a. Targets

• Group’s Revenue (private): VND 261,532 billion.
• Group’s Revenue (consolidated): VND 161,577 billion.
• Pre-tax profit: VND 40,153 billion.

b. Main mission

• Maintain and promote internal digital transformation activities and provide products and services to customers for completing the transformation from a telecoms company to a digital service provider.
• Promote the implementation of restructuring under the plan approved by the Prime Minister in Decision 18/QD-TTg dated March 3^rd, 2018 in compliance with legal regulations, investment efficiency without losing the State's capital and property.
• Submit to the Government for consideration, amendment and supplementation of the Government's Decree 05/2018/ND-CP dated January 5th, 2018 on the Organization and Operation Charter of the Holding Company of Military Industry and Telecoms Group.
• Complete the production and business strategies and investment and development plans up to 2025, and submit them to the Prime Minister for approval.
• Carry out the application of modern technology in the operations in order to optimize costs, improve business performance, labor productivity, product quality, and meet the increasing requirements of the market; Develop a synchronous human resource policy to satisfy production and business requirements in the new situation.