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Tag: sovico

  • Keppel, Sovico Plan Vietnam-Singapore Subsea Cable Project

    Keppel, Sovico Plan Vietnam-Singapore Subsea Cable Project

    Currently, there are four operational submarine cable systems linking Vietnam to the rest of the world: AAE-1, AAG, TGN-IA, and APG. The SEA-ME-WE 3 cable system previously connected with Vietnam, however, it was retired in early December.

    Three new cables are under construction to connect Vietnam: ADC, ALC, and SJC2. Moreover, Viettel and Singtel have signed a Memorandum of Understanding (MOU) to construct the Vietnam-Singapore Cable System (VTS).

    Vietnam has experienced frequent internet disruptions due to faults in its underwater cables. For instance, both the APG and AAE-1 cables are currently not functioning and awaiting repairs. In June, three out of five undersea cables connecting Vietnam to the world (APG, AAE-1, and TGN-IA) encountered issues, causing internet speed reductions across the country. The repair of the AAE-1 cable is still pending. In January 2023, four out of five undersea cables (AAG, IA, APG, and AAE-1) were not operational, leading to slow internet speeds across Vietnam.

    In January 2024, the Prime Minister of Vietnam issued Decision 36/QD-TTg (Decision 36), approving Vietnam’s Digital Infrastructure Master Plan 2030. According to this plan, Vietnam aims to add two-to-four international internet cables by 2025 and another four-to-six international undersea fiber optic cables by 2030.

    Furthermore, by 2030, Vietnam plans to increase the total number of submarine cables to 15, each with a total capacity of at least 334 Tbps. Sovico Group will focus on providing high-quality products and services in various sectors to meet customer needs and integrate with the global economy. In September, Sovico Group signed an MoU with U.S.-based tech company, Supermicro, to develop a hyperscale data center in Vietnam.

    According to SCMP, Keppel and Sovico Group are considering laying a cable that will directly connect Vietnam with Singapore, predicted to cost an estimated USD 150 million.

    The new projects led by Keppel and Sovico Group will be separate from previous investments announced by Vietnamese companies in four new undersea cables. These include the ADC and SJC2 cables, built by Japan’s NEC; ALC, built by China’s HMN Tech; and the Vietnam-Singapore submarine cable system announced by Vietnam’s Viettel and Singapore’s Singtel.

    Given its proximity to China, Vietnam faces challenges in aligning with the U.S. on strategies and policies related to digital infrastructure and undersea cables.

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  • Sovico registers to buy 13.7 million Vietjet shares

    Sovico registers to buy 13.7 million Vietjet shares

    Sovico Holdings Company registered to purchase nearly 13.7 million shares of Vietjet Aviation Joint Stock Company (VJC) between March 26 and April 25.

    Sovico is a founding shareholder of the budget airline, owning 4.56 per cent of Vietjet’s capital. If the transaction is successful, Sovico will increase its ownership to 34.3 million shares, equivalent to 7.59 per cent, and become a major shareholder in Vietjet.

    Currently, Nguyễn Thị Phương Thảo, Vietjet’s general director and chairman of Sovio, holds 8.76 per cent of Vietjet’s capital. Her private company, Hướng Dương Sunny Investment Co Ltd, is the largest stakeholder with 28.57 per cent.

    HDBank, where Thảo is vice president, owns another 4.95 per cent, while her relatives possess a combined 2 per cent.

    Thus, after the transaction, Thảo and her related companies and individuals will likely hold nearly 52 per cent of Vietjet’s capital.

    At the end of 2017, the airline’s revenue totaled VNĐ42.3 trillion, up 53.7 per cent year-on-year. Its pre-tax profit reached nearly VNĐ4.8 trillion, up 75.9 per cent over last year and surpassing the yearly target by 26 per cent.

    Vietjet increased the dividend ratio for 2017 from 50 per cent to 60 per cent and had paid VNĐ1.35 trillion to pay 30 per cent dividends last year.

     

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