MobiFone proposed to be transferred to Ministry of Public Security

State-owned telecom giant MobiFone might be managed by the Ministry of Public Security as per a plan recently submitted to the government by the Ministry of Home Affairs (MoHA).

Currently, MobiFone is under the management of the Commission for the Management of State Capital at Enterprises (CMSC).

As part of the government’s plan to restructure and streamline the administrative apparatus, this commission will cease operations and transfer the responsibility of state ownership representation for 19 state-owned groups and corporations to relevant ministries.

In its plan, the MoHA proposed transferring the Party organization of MobiFone to the Central Public Security Party Committee.

Founded in 1993 as Vietnam Mobile Telecom Services Company (VMS), MobiFone was the first mobile telecommunications network in Vietnam. In December 2014, it was reorganized into MobiFone Telecommunications Corporation under the Ministry of Information and Communications. In November 2018, its state ownership representation was transferred to the CMSC.

MobiFone is one of the largest telecommunications, information technology, and digital content companies in Vietnam, with a market share of over 30%. The corporation aims to transform into one of the leading technology groups in Vietnam.

According to the CMSC’s December report, MobiFone’s consolidated pre-tax profit is expected to reach VND2.05 trillion ($80.8 million) in 2024, exceeding the year's target by 20.6%.

In 2024, some of MobiFone’s digital service areas showed high growth rates, including MobiFone Meet (1,050%), Cloud (312%), mobiAgri (49%), and MobiFone Invoice (58%).

In addition to MobiFone, the remaining 18 state-owned groups and corporations will be managed by the Ministry of Finance after the CMSC ceases its operations.

According to Prime Minister Pham Minh Chinh, the government has mapped out a plan on apparatus restructuring to submit to competent authorities for approval.

The proposed structure features 22 ministries and agencies, including 17 ministries and ministry-level agencies (down by five) and five government-affiliated agencies (down by three). Additionally, ministries and agencies will significantly reduce their units at all levels.

Ministries that are not merged must reduce their units by at least 15-20%, while those merged must achieve a reduction of 35% or more, Chinh stressed at a meeting on the issue in Hanoi on Saturday.