A majority stake in Vietnam’s FPT Telecom, one of the country’s largest internet providers, has been transferred to the Ministry of Public Security from a state-run investment corporation in an effort to boost national cybersecurity and data sovereignty, the ministry said on Wednesday, as quoted by Reuters.
Vietnam’s State Capital Investment Corporation (SCIC) previously held 50.17% of FPT Telecom, while FPT Corp, Vietnam’s largest private tech company, had a 45.66% stake but retained control of the unit, according to FPT Telecom’s financial statements for last year.
The transfer is aimed at strengthening the ministry’s capability to protect national security and ensure network and information security, the ministry said in a statement. It did not elaborate whether the ministry would take effective control of FPT Telecom.
The ministry, which oversees the police, has become increasingly involved in Vietnam’s internet and telecoms sector. It took control of the country’s third-largest telecoms operator, MobiFone, last year and also spearheaded a tightening of data protection rules that has raised concerns among foreign tech firms.
On the other hand, some analysts suggest that FPT Telecom may benefit from increased legal, financial, and strategic support under the ministry, particularly in relation to national digital infrastructure initiatives, remote area coverage, and cybersecurity development.
Nguyen Quoc Huy, General Director of SCIC, expressed confidence in the ministry’s ability to support FPT Telecom’s continued development, especially in relation to Project 06, a national initiative focused on building a digital government, digital society, and data platforms.
The ministry has emphasised that the acquisition of telecom firms is part of its mandate to protect national interests and the digital rights of citizens, acknowledging that cyberspace is both a security frontier and a space for national development.