Vietnam's Ministry Eyes Control Over FPT Telecom: Boosting Cybersecurity

Vietnam's Ministry of Public Security plans to acquire a majority stake in FPT Telecom for enhanced national cybersecurity. With existing stakes in major telecom operators, the ministry's move raises questions about control dynamics and impacts on foreign tech firms. The plan has unsettled investors, impacting FPT Corp shares.

Vietnam's Ministry of Public Security is poised to take a controlling stake in FPT Telecom, one of the country's leading internet service providers, to strengthen national cybersecurity efforts. This move reflects the ministry's growing influence in Vietnam's telecoms sector, previously marked by its takeover of MobiFone and stringent data rules.

The State Capital Investment Corporation (SCIC) is set to transfer its 50.17% stake in FPT Telecom to the ministry, which has not yet confirmed if it will assume full control. FPT Corp, holding a 45.66% stake, maintains control, but the transfer has prompted investor concerns, evidenced by a nearly 7% drop in FPT Corp shares.

FPT Telecom plays a vital role in Vietnam's telecom infrastructure, especially in developing undersea fiber-optic cables—a national priority. The finance ministry's response to the plans is awaited, as the prime minister's approval is necessary to finalize the stake transfer.

(With inputs from agencies.)