Foreign
information technology firms and investment funds are interested in venturing
into Vietnamese IT and software development companies.
This was what shared by many businessmen,
investment consultants and managers at the Super Investors Day 2012 held in
HCMC on Thursday.
Chu Tien Dung, chairman of Quang Trung
Software City Development Co. Ltd., said many foreign IT and software
development firms were planning to expand to Vietnam and seeking partnerships
with local software enterprises.
Speaking to the media on the sidelines of the
event, he said most foreign investors chose to take over Vietnamese firms to
enter the local market. Therefore, he predicted, mergers and acquisitions
(M&A) would be busier in the local IT industry and investors seemed to
prefer small businesses.
Foreign investors seeking to buy into
Vietnamese companies are only interested in the local market and available
human resources. They are willing to change the names of the companies they
acquire and transfer technology to them for quick business resumption, instead
of investing in new firms.
Dung noted this trend helped shorten M&A
talks. For instance, Japanese investors were formerly very prudent and only
began their investment after 2 or 3 years of surveying the local market, but
now a survey only takes about six months.
Nguyen Tat Thang, chief economist at HSC
Company and an investment consultant, said the IT sector is appealing to
foreign investors, especially those from Japan.
Vietnam’s IT industry is still underdeveloped,
Thang stressed, notably the development of database and management systems of
certain sectors like finance, distribution and healthcare. Therefore, foreign
investors want to invest in Vietnam through M&A deals to tap this market.
David Do, managing director of Vietnam
Investments Group (VIG), shared the view that there is a big opportunity to
invest in Vietnam’s IT market. He said that in developed economies like the
U.S. and European nations, IT accounts for some 7 per cent of gross domestic
product (GDP), while the figure in Vietnam is less than 2 per cent.
E-commerce is also considered attractive to
investment funds, David added, as Internet services are growing strongly in
Vietnam. The Super Investors Day 2012 was organized by Doanh Nhan magazine in
coordination with Vinabull, Le Bros and InfoTV Channel with the participation
of 20 economists and businessmen as speakers on the topic of investment
opportunities and outlook for Vietnam in 2012.
thesaigontimes
Business & Investment Opportunities
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