Public Security Minister guides Vietnam's MobiFone to reshape itself as security company

The transfer of MobiFone to the Ministry of Public Security reflects the "strategic vision of the Vietnamese Party and State in developing the national security industry and digital transformation".

General Luong Tam Quang, a Politburo member and Minister of Public Security, made the statement in a Tuesday working session with MobiFone, the ministry's news portal reported.

Wholly state-owned MobiFone, one of Vietnam's leading telecom, IT and digital content enterprises, once belonged to the Ministry of Information and Communications. In late 2018, it was transferred to the State Capital Management Committee (SCMC).

The Ministry of Public Security officially took over the management of MobiFone, Vietnam’s third-largest telecom company, from SCMC in late February this year. The transfer was approved by the government as part of its ongoing administrative streamlining drive.

Minister Quang said the transfer affirms the special attention of the Party and the State to reshape the corporation for the development of the security industry, science-technology, and digital transformation of the public security sector.

"The move is in line with the Politburo's Resolution 57 on scientific and technological breakthroughs, innovation and national digital transformation," he noted.

Quang asked MobiFone to focus on researching its strengths to produce telecom and technology products that effectively serve the development of enterprises and national interests.

He emphasized that the corporation must pay attention to building a legal corridor to create favorable conditions and remove obstacles for its strong development, especially as a security company.

After being transfered to the public security ministry, MobiFone has submitted to the ministry a dossier on its proposed new charter and to the Prime Minister a dossier for approving it as an enterprise directly serving national defense and security.

Currently, the corporation is coordinating with relevant agencies to amend the financial management regulations and review all internal processes and rules to ensure compliance with the new charter, the new financial regulations and the operating mechanism of a company that directly serves national defense and security.

The corporation has also outlined a plan to build its development strategy for the period 2025-2030, with a vision to 2045.

Founded in 1993, MobiFone was Vietnam’s first telecommunications company. According to Vietnam’s ICT White Book 2023, the company held a 17.9% share of the domestic telecom market, behind Viettel (56.3%) and VNPT (21%), both of which are state-owned.

In 2024, MobiFone reported a pre-tax profit of VND2,048 billion ($80.2 million), exceeding its target by 20.6%. Some of its segments posted strong growth from 2023, such as MobiFone Meet (1,050%), Cloud (312%), mobiAgri (49%), and MobiFone Invoice (58%).

The company currently has 21 member units with a total of 4,000 employees. As of end-2023, it had total assets of VND31,630 billion ($1.24 billion) and owners’ equity of VND23,140 billion ($906.3 million).

MobiFone on March 27 officially commercialized its 5G services, becoming the third network operator in the country to do so.