``HTIL filed an application for an investment license to Vietnam's Ministry of Planning and Investment last year, but HTIL has so far not received an approval,'' the source said.

Vietnam media reported on Monday that initial government approval had been given to HTIL's license application, quoting its joint venture partner Hanoi Telecom. It said HTIL and its partner will invest US$630 million (HK$4.91 billion) in the joint venture, which will start operating in the second quarter.

HTIL declined to comment on Tuesday.

``The joint venture will operate mobile services based on the CDMA1X standard, the same technology deployed in HTIL's Thailand business,'' the source said. HTIL's other systems all rely on rival GSM technology.

The CDMA1X (Carrier Division Multiple Access 1X) technology is a so-called 2.75 generation (2.75G) mobile technology, offering limited data capabilities, sitting halfway between 2G, which is voice only, and 3G, which fully supports high bandwidth data applications. China Unicom operates CDMA1X mobile services in China.

Hanoi Telecom hopes the new joint venture will sign up 2.9 million subscribers in the next ten years.

Vietnam is seen as a high-growth market. Despite a 62 percent surge in mobile subscriber numbers last year, just 4.96 million of the country's 82 million people are signed up.

The benefits to HTIL's business will be long term, according to analysts. ``HTIL's operations in Paraguay and Ghana currently don't contribute any profits and value to the company, and I would put any new businesses in Vietnam in the same category,'' said an analyst at a regional investment bank.

The analyst forecast a 5 percent addition to HTIL's profits in 10 years.