MobiFone Transfers Key Management Rights to State Capital Management Committee, Signaling New Era of Strategic Development and Governance

Hanoi, Vietnam – February 28, 2024 – In a significant move that underscores a commitment to enhanced corporate governance and strategic oversight, the State Capital Management Committee (SCMC) officially took over the management rights of the Vietnam Posts and Telecommunications Group (MobiFone) on February 28th. This transfer signifies a pivotal moment for one of Vietnam’s leading telecommunications enterprises, signaling a new chapter focused on robust development, innovation, and alignment with national economic objectives.

The handover ceremony, held at MobiFone’s headquarters, marked the formal assumption of responsibilities by the SCMC, positioning it as the primary representative of state ownership within the company. This strategic decision reflects a broader national drive to strengthen the management of state-owned enterprises (SOEs), ensuring they operate with greater efficiency, transparency, and accountability.

A Strategic Realignment for National Economic Growth

Nguyen Hoang Anh, Chairman of the SCMC, articulated the profound significance of this transition during the handover ceremony. He emphasized that the transfer of representative rights for state ownership at MobiFone is not merely a procedural change but a critical milestone. "This represents a decisive step forward in our ongoing efforts to optimize the management and development of MobiFone," Anh stated. "It will significantly enhance our ability to foster innovation, ensure information security, and fully unlock the enterprise’s potential in the dynamic new landscape."

Anh further elaborated on the implications of this strategic realignment, highlighting its role in bolstering operational efficiency and guaranteeing information security. He stressed that MobiFone’s inherent potential will be further harnessed to achieve new heights of performance. The SCMC’s oversight is expected to instill a renewed sense of purpose and direction, driving MobiFone towards greater competitiveness and its long-term vision of becoming a leading digital technology enterprise in Vietnam. This move is intrinsically linked to the nation’s broader economic development strategy, aiming to leverage SOEs as engines for innovation and sustainable growth.

MobiFone’s Commitment to Innovation and National Digital Transformation

In his address, Anh also outlined the expectations placed upon MobiFone under the SCMC’s stewardship. "Under the leadership of the Ministry of Public Security [referring to the previous oversight body], MobiFone will always be dedicated, diligently striving to bring forth its unique creativity and dynamism. We will continue to foster the spirit of innovation, enhance the quality of services, and guarantee information security. Our ultimate goal is to contribute significantly to the national digital transformation process, rapidly achieving our objectives of becoming a leading digital technology enterprise in Vietnam. This will, in turn, contribute to building a strong economy and society, laying the foundation for future economic development and driving new growth, ultimately contributing to GDP growth during this critical period of national development," Anh added.

This statement underscores MobiFone’s dual mandate: to achieve commercial success and to play a crucial role in Vietnam’s ambitious digital transformation agenda. The focus on innovation, service quality, and information security directly aligns with the government’s vision for a modern, digitally-enabled nation.

Background and Context: Strengthening SOE Governance

The transfer of management rights for MobiFone to the SCMC is part of a wider initiative by the Vietnamese government to reform and improve the governance of its state-owned enterprises. For years, concerns have been raised about the efficiency, transparency, and performance of many SOEs. The establishment of the SCMC itself, in 2018, was a direct response to these concerns, aiming to consolidate the ownership rights of the state in key enterprises and to implement more professional and effective management practices.

MobiFone, as a major player in Vietnam’s telecommunications sector, has historically been under the purview of different ministries. The Ministry of Information and Communications (MIC) has played a significant role in regulating the telecom industry, while the Ministry of Public Security has also had oversight responsibilities in certain aspects of national security related to telecommunications infrastructure. The current transfer to the SCMC signifies a shift towards a more centralized and specialized approach to managing state capital within these strategic entities.

This move is not unprecedented. Similar transfers have occurred for other large SOEs, including those in the energy and banking sectors. The overarching goal is to ensure that state capital is managed in a way that maximizes returns, fosters innovation, and aligns with national strategic priorities, moving away from a potentially fragmented or less efficient oversight model.

Key Figures and Their Roles

The ceremony saw the presence of key leadership from both the SCMC and MobiFone. Nguyen Ngoc Lam, Chairman of the SCMC, delivered a pivotal speech, emphasizing the need for MobiFone to maintain a high level of political awareness, a proactive and determined spirit, and enhanced leadership capabilities. He urged the company to swiftly implement its core responsibilities and to foster stronger collaboration with other businesses in the technology sector.

"Under the leadership of the SCMC, MobiFone must continue to be innovative, dynamic, and creative, bringing its unique strengths to the forefront. We must continue to promote the spirit of innovation, enhance service quality, and ensure information security. Our contribution to national digital transformation is paramount. We aim to rapidly achieve our goal of becoming a leading digital technology enterprise in Vietnam, contributing to a strong economy and society, and creating momentum for economic development and new growth, driving GDP growth in the coming period," Chairman Lam reiterated.

His call for increased collaboration with technology businesses highlights the recognition that the future of telecommunications and digital services lies in a synergistic ecosystem. MobiFone is expected to leverage partnerships to accelerate its technological advancements and market reach.

Strategic Directives for MobiFone’s Future Operations

Chairman Lam further laid out concrete directives for MobiFone’s operational future. He called for the company to develop a forward-thinking business strategy with a clear, robust, and well-articulated plan for development and leveraging its strengths. This includes identifying and capitalizing on opportunities in the global digital landscape to serve its business operations.

"MobiFone must collaborate with related businesses to review and propose policies that create a competitive edge, aligning with the directives and conditions of the SCMC regarding infrastructure, transmission, bandwidth, and customer base. Military cybersecurity units must report to the SCMC for review and decision-making. Simultaneously, research and promote favorable conditions for MobiFone to accelerate its initiatives and support businesses that are preparing for implementation under the SCMC’s guidance. Emphasizing innovation and creativity in digital technology, we will focus on upgrading the digital infrastructure and developing services that are leading-edge, competitive, and customer-centric," stated Chairman Lam.

This directive emphasizes a data-driven and policy-informed approach to business development. The mention of "military cybersecurity units" suggests a continued focus on national security aspects, even as the company embraces commercial growth. The commitment to customer-centricity is a vital element in today’s competitive market.

Expanding the Horizon: Embracing Emerging Technologies

Minister of Information and Communications, Nguyen Manh Hung, also addressed the gathering, encouraging MobiFone to boldly embrace new frontiers and expand its innovative space. He specifically highlighted several key areas where MobiFone should concentrate its efforts:

• Data Centers: Investing in robust and scalable data center infrastructure is crucial for supporting the growing demand for cloud services and data storage.
• IoT Platforms: Developing and deploying Internet of Things (IoT) platforms will enable MobiFone to tap into the burgeoning market for connected devices and smart solutions across various sectors.
• Intelligent Operations Centers (IOCs): Establishing IOCs will enhance the company’s ability to monitor, manage, and optimize its network operations and service delivery in real-time, leveraging artificial intelligence and advanced analytics.
• Digital Twins: Creating digital replicas of physical assets and systems will allow for advanced simulation, analysis, and predictive maintenance, particularly relevant for complex urban infrastructure projects like those in Ho Chi Minh City, addressing challenges such as flooding and urban planning.
• Personalized Telecommunication Services: Developing and offering personalized services, including AI-driven assistance and intelligent support, is key to enhancing customer experience and loyalty.

Minister Hung’s vision is for MobiFone to become a leader in these advanced technological domains, recognizing the immense potential for growth and societal impact. "The new space is vast. The key is for MobiFone to decide to act and to act with dedication," he remarked, underscoring the urgency and opportunity.

MobiFone’s Vision for 2030: A Tech Powerhouse

Nguyen Hoang Hien, Chairman of MobiFone, articulated the company’s ambitious vision for the future. "MobiFone’s vision for 2030 is to become a pioneering technology group in the field of technology, providing high-quality technology infrastructure and services," he stated. This forward-looking statement positions MobiFone not just as a telecommunications provider but as a comprehensive technology solutions enterprise.

To achieve this vision, MobiFone has set concrete goals for 2025. The company plans to continue developing advanced technological foundations, including Artificial Intelligence (AI), the Internet of Things (IoT), and cloud computing. It will also focus on integrating these technologies with emerging platforms like 5G and enhancing cybersecurity and data protection measures. Furthermore, MobiFone is committed to investing in human capital development and advancing scientific research in technology to meet the demands of the national digital transformation.

Broader Implications and Future Outlook

The transfer of management rights for MobiFone to the State Capital Management Committee is more than a corporate reshuffling; it is a strategic maneuver indicative of Vietnam’s commitment to modernizing its economic landscape. By placing key state-owned enterprises under more centralized and professional management, the government aims to unlock greater value, foster innovation, and ensure that these entities are well-equipped to contribute to national development goals.

For MobiFone, this transition presents both challenges and opportunities. The company will need to navigate the expectations of the SCMC while continuing to innovate and compete in a rapidly evolving telecommunications market. The focus on digital transformation, emerging technologies, and customer-centricity suggests a strategic direction that is aligned with global trends.

The success of this initiative will likely be measured by MobiFone’s ability to enhance its operational efficiency, drive technological advancements, improve service quality, and contribute significantly to Vietnam’s digital economy. The coming years will be critical in observing how MobiFone, under the SCMC’s guidance, transforms into the leading digital technology enterprise envisioned by its leadership and the government. The implications extend beyond MobiFone, setting a precedent for the future management and strategic direction of other key state-owned enterprises in Vietnam.