For Immediate Release
November 14, 1997
NTT Received a License to Construct Telephone Networks in Northern Hanoi
NTT Vietnam Corporation - established by Nippon Telegraph and Telephone Corporation (NTT) - has received, together with Vietnam Posts and Telecommunications Corporation (VNPT), on November 13 a license from the Vietnamese government to conduct telephone network construction project in the northern part of Hanoi. NTT Vietnam and VNPT had jointly applied for the license in September 1997.Since last year, NTT began preparation toward participating in the construction of telecommunications networks in Northern Hanoi, beginning by establishing NTT Vietnam in December 1996.
With the award of this license, NTT Vietnam will build 240,000 telephone lines in the area in the first five years, which will cost approximately US$ 200 million. Through these efforts, NTT Vietnam will promote the development of telecommunications in Vietnam, a country that is experiencing dramatic economic development.
1. History
December 1996: NTT Vietnam Corporation is established (Head office: Shinjuku-ku, Tokyo. Capitalization: ¥100 million (100% by NTT).
President: Shoichi Makino (NTT Senior Vice President and Deputy Senior Executive Manager of Global Business Headquarters)).
March 1997: NTT Vietnam increases its capitalization to ¥400 million (55% by NTT, 30% by Nissho-Iwai Corporation, and 15% by Sumitomo Corporation).
July 1997: VNPT and NTT Vietnam sign a Business Cooperation Contract (BCC).* September 1997: VNPT and NTT Vietnam jointly apply to the Vietnamese government's Ministry of Planning and Investment for licensing. November 1997: License is issued
* Business Cooperation Contract (BCC)
A type of foreign capital investment allowed by the Law on Foreign Investment in Vietnam, it allows its domestic corporations to jointly conduct business operations with overseas corporations by cooperating in raising capital, arranging necessary personnel and dividing profit, without establishing a joint venture company.
2. Outline of operations:
Operational area: Northern part of Hanoi, Vietnam
Duration of agreement: 15 years
Contents of agreement: NTT Vietnam is to establish 240,000 new telephone lines and provide operational assistance to VNPT by 2002. VNPT is to operate the existing facilities and facilities established by NTT Vietnam. Profits are to be shared between the two companies.
3. Schedule for the future:
Through NTT Vietnam, NTT will dispatch approximately 10 staffs to start operations.
