Vietnam's state-owned operator Viettel plans to enter chip manufacturing

Vietnam's state-owned telecommunications service provider Viettel reportedly revealed to the country's prime minister that it intends to venture into chip manufacturing based on the electronic payment service it has already developed.

In addition to developing electronic payment services, the head of the Viettel Group under the Ministry of Defense reportedly said during a meeting with Prime Minister Pham Minh Zheng that the company intends to venture into chip production. Viettel believes that producing chips in-house can ensure Vietnam's defense security. Vietnam Telecom can also use its strengths to act as a leader in state-owned enterprises in areas such as high-tech defense, construction and internet security.

Regarding electronic payment services, Viettel is expected to establish a national digital transformation platform to act as an agent for financial transfers and electronic clearing services. This platform can be used when transferring funds between banks.

According to reports, Prime Minister Pham Minh Trin supported Vietnam Telecom in researching and producing chip technology. He believes that for Vietnam's digital transformation, including the construction of digital government, digital economy and digital society, Viettel should play a key role in an efficient and influential way. The Prime Minister also agreed to make Viettel an institution for financial transfer and clearing services.

Over the past few years, Viettel's average annual pre-tax profit has been above VND40 billion ($1.7 billion).