Accton to set up joint venture with Viettel Telecom in Vietnam

Taiwan-based network equipment maker Accton Technology has decided to set up a joint venture (JV) with Viettel Telecom in Vietnam to develop carrier-grade networking equipment targeting the local telecom and CPE segments, according to the company.

The planned JV will be capitalized at US$30 million, with Viettel and Accton contributing 70% and 30% respectively, Accton said.

Viettel is currently the largest mobile telecom carrier in Vietnam with a more than 30% market share, and is strong in channel and brand marketing, Accton noted.

The formation of the JV will initiate a business model that allows Taiwan-based network equipment makers to directly venture into the telecom sector, stated Accton chairman AJ Huang.

In other news, Accton posted revenues of NT$1.81 billion (US$56.74 million) for December, up 20.1% sequentially and 38.8% on year. For all of 2009, revenues totaled NT$14.36 billion, decreasing 5.2% from 2008.