State-owned giant MobiFone ties up with private conglomerate Sovico

Vietnam’s state-owned telecom giant MobiFone and private conglomerate Sovico Group have signed an MoU for comprehensive cooperation aimed at building a multi-utility technology and services ecosystem to support national development.

Under the agreement, the two companies will leverage their respective strengths in telecommunications, technology, finance, banking, insurance, and aviation.

The partnership will focus on deploying 5G networks in smart cities, public spaces, railway stations, and airports, while integrating base station infrastructure with IoT, surveillance cameras, and smart connectivity solutions.

Both sides also plan to cross-sell products and services, expand digital financial offerings, develop enterprise digital transformation solutions, and co-create digital content.

Speaking at the signing ceremony on Monday, Mobifone chairman Truong Son Lam said that the collaboration between Sovico and MobiFone will create a strong synergy between telecoms and digital infrastructure with financial, investment, and service capabilities.

"This partnership reflects the government’s policy efforts in promoting private sector development and public-private collaboration in telecoms, technology, and investment,” he added.

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

In 2024, MobiFone reported a pre-tax profit of VND2,048 billion ($80.2 million), exceeding its target by 20.6%.

Sovico, controlled by billionaire Nguyen Thi Phuong Thao, chairwoman of low-cost airline VietJet Air, posted a pre-tax profit of VND657 billion ($24.86 million) in the first half of 2025, up 20.3% year-on-year.

Its owners’ equity stood at nearly VND70 trillion ($2.6 billion) and total assets at about VND230 trillion ($8.7 billion) as of June 30.