Vietnams Ministry of Public Security Acquires Majority Stake in FPT Telecom to Boost National Cybersecurity

Vietnam’s Ministry of Public Security has acquired a majority stake in FPT Telecom, one of the country’s largest internet providers, from the State Capital Investment Corporation. This move aims to enhance national cybersecurity. Previously, the State Capital Investment Corporation held 50.17% of FPT Telecom, while FPT Corp, Vietnam’s largest private tech company, held a 45.66% stake but maintained control. The transfer seeks to strengthen the ministry’s capabilities in protecting national security and ensuring network and information security. The ministry, which oversees the police, has increasingly engaged in Vietnam’s internet and telecoms sector, having taken control of MobiFone, the country’s third-largest telecoms operator, last year. It has also led efforts to tighten data protection rules, causing concern among foreign tech firms. Shares in FPT Corp and FPT Telecom saw slight increases following the announcement. FPT Telecom, in addition to providing internet services, is involved in developing undersea fiber-optic cables, a national priority for Vietnam as its existing cables age and become accident-prone.