Chunghwa Telecom (CHT) on April 27 announced the establishment of a wholly owned subsidiary in Vietnam via an investment of NT$160 million (US$5.1 million). Operations are scheduled to kick off in the third quarter of 2010.
CHT set up offices in Ho Chi Minh and Hanoi in 2006, as well as a joint venture with Vietnam's telecom carrier Viettel, Viettel-CHT Company Limited (Viettel IDC), in 2008 to provide Internet data center services, CHT indicated.
The successful operation of the joint venture shows there is a large market potential in Vietnam, and therefore CHT will set up a subsidiary through combining the two existing offices to tap the market, CHT explained. Because Vietnam has not yet allowed enterprises with a 100% foreign stake to obtain telecom operating licenses, the subsidiary will operate information and communication technology business which do not require licenses, such as smart energy saving, 3G value-added services and intelligent transportation management for cars, for the time being, CHT pointed out.
CHT posted net EPS of NT$4.51 for its 2009 operations, and its board of directors has decided to distribute a cash dividend of NT$4.06.
Article translated by Adam Hwang
