How did MobiFone do business before being transferred to the Ministry of Public Security?

After the end of the State Capital Management Committee at Enterprises, 18 corporations and general companies were transferred to the Ministry of Finance. MobiFone Telecommunications Corporation was transferred to the Ministry of Public Security for management. The handover ceremony took place this morning (February 28).

Before returning to the Ministry of Public Security, MobiFone had undergone transfers from VNPT, the Ministry of Information and Communications , and the State Capital Management Committee at Enterprises - Photo: MBF

Transfers of ownership at MobiFone

MobiFone is the first mobile telecommunications network in Vietnam, established in 1993 with the original name of Mobile Information Company (VMS) and the famous slogan "Anytime - Anywhere".

Two years after its inception, VMS expanded its coverage to three regions with more than 20 provinces and cities. During the period from 1996 to 2001, this first network expanded its operations from 21 broadcasting stations to a total of 500, covering all provinces and cities.

During the development process, MobiFone has had many important transitions. For example, in 2010, VMS transformed its business form into a limited liability company under the Vietnam Posts and Telecommunications Group (VNPT) - the unit representing the state ownership.

Four years later, the State ownership representative rights at VMS were transferred from VNPT Group to the Ministry of Information and Communications.

Near the end of 2014, VMS was transformed into MobiFone Telecommunications Corporation, under the Ministry of Information and Communications. From this time, MobiFone developed according to the model of a multi-service business corporation with a charter capital of up to 12,600 billion VND.

But 4 years later, MobiFone was transferred the ownership representative rights to the State Capital Management Committee at enterprises, from November 2018.

And by 2025, continue to transfer the right to represent state capital ownership from the State Capital Management Committee at enterprises to the Ministry of Public Security.

How does MobiFone do business?

MobiFone has not yet announced its 2024 financial report. But a report from the State Capital Management Committee at enterprises late last year said MobiFone's consolidated pre-tax profit for the whole year of 2024 is estimated at VND2,048 billion, exceeding the yearly plan by 20.6%.

Looking back over the past decade of business, MobiFone's after-tax profit has fluctuated at several thousand billion VND.

In particular, in 2015, after separating from VNPT, the after-tax profit in the parent company's financial report reached 5,481 billion VND, the highest since the financial report was announced.

After this year, the network operator's profits fluctuated and increased. In 2022, the profit was low at VND 1,885 billion.

	Revenue	Profit after tax
2015	31387	5481
2016	35078	4223
2017	39959	4664
2018	36077	4676
2019	32899	4907
2020	29815	3744
2021	24526	-1442
2022 (merged)	29426	1885
2023	25440	1638

Data: Separate financial statements

MobiFone's profit margin decline is in the context of a saturated telecommunications market where traditional voice/SMS revenue is fiercely competing with booming OTT services.

This fierce context also requires telecommunications businesses to expand into the digital product and service space and develop digital infrastructure to adapt to the new situation...

The positive point in recent years is that MobiFone's overall growth contribution comes from new products. In particular, the digital service sector of this network has witnessed high growth rates of many products and services such as MobiFone Meet (growth of 1,050%), Cloud (312%), mobiAgri (49%), MobiFone Invoice (58%).

Regarding other financial indicators, at the end of 2015, the total assets on MobiFone's separate financial report were VND24,523 billion. Of this, nearly VND9,000 billion were bank deposits earning interest.

At this time, MobiFone's equity capital is 15,000 billion VND, undistributed profit after tax at the beginning of 2015 is 153 billion VND.

By the end of 2022, according to the consolidated financial report, MobiFone's total cash and bank deposits increased to nearly VND 11,400 billion. The bank interest alone that MobiFone received this year also reached VND 637 billion.

	Column 1
2015	22.99
2016	22.97
2017	24.68
2018	27.23
2019 (plan)	27.23

As a business with competitive advantages and effective operations, MobiFone's average employee income is in the "desirable" group.

Information from the corporation itself at the press conference announcing the list of 67 "Outstanding Enterprises for Employees" in 2024, with an increasingly expanding workforce (currently up to more than 4,000 employees), the average income per person is up to 480 million VND/year (40 million VND/month).

On the website, MobiFone introduces itself as one of the largest telecommunications - information technology - digital content enterprises, the first mobile information network provider, with more than 30% market share.

In addition, MobiFone once emerged after a famous acquisition deal, which was buying 95% of AVG shares.

In July 2018, the Ministry of Public Security's Investigation Police Agency prosecuted the case at MobiFone and related units for violating regulations on management and use of public investment capital, causing serious consequences.

Source: https://tuoitre.vn/mobifone-kinh-doanh-ra-sao-truoc-khi-ve-bo-cong-an-20250228182438536.htm