Vietnam's public security ministry takes stake in internet firm FPT Telecom
Vietnam's State Capital Investment Corporation previously held 50.17% of FPT Telecom, while FPT Corp, Vietnam's largest private tech company, had a 45.66% stake but retained control of the unit, according to FPT Telecom's financial statements for last year.
The transfer is aimed at strengthening the ministry's capability to protect national security and ensure network and information security, the ministry said in a statement.
It did not elaborate whether the ministry would take effective control of FPT Telecom.
Wednesday's statement confirmed a Reuters report in April about the possible transfer.
The ministry, which oversees the police, has become increasingly involved in Vietnam's internet and telecoms sector.
It took control of the country's third-largest telecoms operator, MobiFone, last year and also spearheaded a tightening of data protection rules that has raised concerns among foreign tech firms.
Shares in FPT Corp rose by 0.24% on Wednesday morning, while shares in FPT Telecom were also up slightly.
In addition to providing internet services, FPT Telecom is involved in the development of undersea fibre-optic cables, which Communist-run Vietnam considers a national priority as most of its existing cables are ageing and prone to accidents.
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