Robert Besser
22 Apr 2025

HANOI, Vietnam: Vietnam's Ministry of Public Security is seeking to acquire a majority stake in FPT Telecom, one of the country's top internet providers, as part of a broader push to strengthen national cybersecurity, according to a government document reviewed by Reuters.

The move would see the State Capital Investment Corporation (SCIC), which currently holds a 50.17 percent stake in FPT Telecom, transfer its shares to the ministry. FPT Corp, Vietnam's largest private tech company, owns 45.66 percent but retains control of the telecom unit. It is unclear if the planned transfer would shift effective control of the company to the public security ministry.

Neither the ministry nor the finance ministry responded to Reuters' requests for comment. FPT Corp said there was no information to share.

The ministry, which oversees police and internal security, has become more active in managing Vietnam's telecommunications and internet infrastructure. It took control of mobile network operator MobiFone last year and has led efforts to tighten data protection laws, raising concerns among international tech companies.

FPT Telecom plays a key role in Vietnam's internet infrastructure and is involved in expanding undersea fibre-optic cables, a government priority due to the ageing and accident-prone state of existing lines.

According to the document dated April 14, the proposed share transfer is intended to "contribute to the good performance of the functions and tasks of the Ministry of Public Security," which include data protection and cybersecurity enforcement.

The plan, which has been submitted to the finance ministry, still requires approval from the prime minister.

Following news of the proposed change, shares in FPT Corp dropped nearly 7 percent on Wednesday. Analysts cited investor uncertainty over the future of FPT Telecom, a major revenue driver for the company. The stock has since regained some ground but remains down 2.8 percent compared to its April 15 close.

Vietnam's telecom sector is state-controlled mainly. Viettel, the largest operator, is run by the defence ministry, while the second-largest, VNPT, is overseen by the SCIC and the finance ministry. The potential acquisition of FPT Telecom would further consolidate state oversight of internet infrastructure.