Vietnam’s Ministry of Public Security plans to acquire a 50.17% stake in FPT Telecom from the State Capital Investment Corporation (SCIC) to strengthen national cybersecurity, according to a document reviewed by Reuters.

FPT Corp, the country’s largest private tech firm, currently holds 45.66% of FPT Telecom and controls the company.

It’s unclear if the ministry’s move would shift control.

The ministry has been expanding its role in the telecom sector, having taken over MobiFone last year and tightening data protection rules.

Approval from the prime minister is needed to finalize the plan.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Vietnam is consolidating telecom control under security agencies, reflecting a broader Asian trend

The Ministry of Public Security’s planned acquisition of FPT Telecom marks the second major telecom asset moving under security agencies’ control in Vietnam, following MobiFone’s transfer last year.

This signals a strategic concentration of infrastructure, with three major operators now controlled by security-focused ministries: Viettel (Defense Ministry), MobiFone (Public Security Ministry), and potentially FPT Telecom (Public Security Ministry)1.

This shift aligns with trends in nearby markets where telecommunications are increasingly treated as strategic security assets rather than purely commercial ventures.

The government’s focus on undersea fiber-optic cables as a “national priority” in the planning document highlights how digital infrastructure is now viewed through a national security lens rather than just as commercial assets.

Vietnam’s approach highlights the challenges developing economies face in balancing the need to attract tech investment with maintaining control over critical information infrastructure.

2️⃣ The move reverses Vietnam’s previous telecom privatization trajectory

The government had previously pushed for “equitization” (partial privatization) of state-owned telecom enterprises to increase efficiency and attract investment, as evidenced by earlier policies targeting MobiFone and VNPT for share sales2.

This policy shift suggests a strategic reprioritization where security considerations now outweigh market liberalization goals in the telecommunications sector.