HCMC – Viettel Telecom on Thursday announced it had set up a joint venture with Taiwan-based network equipment maker Accton Technology to develop carrier-grade networking equipment targeting the local telecom and customer premise equipment (CPE) segments.

The deal was signed on Wednesday, said a source from the company, adding the deal would pave the way for Viettel to develop its hardware market segment.

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

The formation of the joint venture will initiate a business model that allows Taiwan-based network equipment makers to directly venture into the telecom sector.

Accton says on its website that through the cross technology license and human resource sharing between the two companies, the new joint venture company aims to become one of the leading networking solution providers in Vietnam by deeply cultivating the local market.

In 2008, Viettel established a joint venture with Chunghwa Telecom Co. Ltd., a Taiwanese telecom giant, to focus on Internet Data Center business and diversify operations into other service sectors.

The joint venture was initially capitalized at around US$30 million and Chunghwa’s ownership of the venture is capped at a 30% stake.

Recently, Viettel and Chunghwa constructed two tech centers at the Hoa Lac High Tech Zone in Hanoi and in Binh Duong Province.

The centers provide databank infrastructure for e-learning, online games, information gateways, digital content for mobile phone networks, e-libraries and multimedia via the Internet.