Vietnam’s Security Ministry to Take Control of Major Internet Provider
Vietnam’s Ministry of Public Security is set to acquire a majority stake in FPT Telecom, one of the country’s largest internet providers, as part of broader efforts to enhance national cybersecurity. This move underscores the ministry’s growing influence in Vietnam’s digital infrastructure.
Strategic Shift Towards State Control
According to a document reviewed by Reuters, the ministry plans to take over the 50.17% stake currently held by the State Capital Investment Corporation (SCIC). SCIC is a state-owned holding company responsible for managing government investments. The document indicates that the stake will be transferred to the public security ministry, which already oversees national police operations.
FPT Telecom is jointly owned by SCIC and FPT Corp, Vietnam’s largest private technology firm. FPT Corp currently holds a 45.66% stake and maintains operational control, as per last year’s financial records. However, it remains unclear whether this new transfer would result in the ministry taking effective control of FPT Telecom.
Concerns Over Cybersecurity and Market Impact
The ministry’s increased involvement follows its recent takeover of MobiFone, Vietnam’s third-largest telecoms operator. It has also played a central role in tightening the country’s data protection laws, raising concerns among international tech companies about operational transparency and regulatory risk.
The official document outlines the aim of the stake transfer: to support the ministry’s responsibilities, including data protection and cyber risk prevention. It calls on the finance ministry to seek the prime minister’s approval for the move.
Shares in FPT Corp fell nearly 7% on the day after the plan was submitted, reflecting investor uncertainty over the future of FPT Telecom, a significant revenue contributor. While some losses have since been recovered, shares remain down 2.8% from Tuesday’s close.
FPT Telecom’s Role in Critical Infrastructure
FPT Telecom does more than provide internet services—it also plays a key role in developing undersea fibre-optic cables. These cables are vital to Vietnam’s digital connectivity, especially as the current infrastructure ages and becomes more prone to disruption.
This move could mirror Vietnam’s existing telecom structure, where Viettel, the country’s largest telecom operator, is owned by the Ministry of Defence. The second-largest, VNPT, remains under SCIC’s control.
As of now, the ministries involved have not commented on the planned transfer. FPT Corp stated that it currently has no additional information to share.
with inputs from Reuters
