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IDG to heavily invest in the private sector

The International Data Group, IDG, will inject capital into two or three private companies – among 30-40 other companies – this summer. These companies need capital to help them grow and presently do not have capital available.

The capital, totaling US$80-100 million will be taken from funds specific to adventurous investments in Vietnam. IDG says it will invest another US$20 million in publishing. IDG president Patrick J. McGovern, the founder of IDG group, had a talk with the local press during his recent visit to Vietnam on March 23-26, 2004.

What investment method will be used by IDG in Vietnam?

We will inject capital directly into these chosen companies. We do not provide loans or go into joint venture with any other companies.

Investment will be conducted into two phases. In the first phase, those companies will be given between US$500,000-2 million. As a single investor during this phase, we will map out the business strategies based on those companies’ ideas. At the next step, further capital, between US$2-5 million will be put into these companies. The figure can reach up to US$10 million if the business proves to have potential. We may call other international investors to join our deals in the second phase. These investors may provide additional experience and business know-how.

In the follow-up we help those companies raise their capital by having their shares listed in world stock markets like the NASDAQ, the Hong Kong stock exchange, and even the Vietnamese stock market.

What are the requirements for Vietnamese companies to access these investments?

The first criterion is the ability and potential of the business entity. An issue of paramount importance is whether the company leaders and their employees are capable of withstanding risks and making the things turn around.

Further, we must envisage the possible growth that company may have in the years to come. For instance, we willingly invest in companies that can possibly post a growth of 30-40 percent in revenue after five years of investment.

In brief, a number of factors will be taken into account. Generally, we enthusiastically support companies operating in new business fields and markets, particularly private ones.

Why does IDG choose to invest in Vietnam at this time?

I believe it is a high time for us to expedite these programs in Vietnam. Vietnamese people are clever, hardworking, and totally dedicated to work, the major factors for business success. Second, Vietnamese government has recognized the important role of the private sector in fuelling economic growth. It is a proper time to invest in Vietnam. The growth will soar within the next two decades.

What is your publishing venture?

We have invested in PC World publications in Vietnam since 1992. We now operate about 300 publications that are distributed in 85 countries. The PC World publications are available in about 70 world countries and have a record annual growth rate of 38 percent. We are quite pleased with such a quick growth.

We boast of having 24-year experience in the publishing sector in China and both sides were satisfied with the cooperation during those years. Vietnam and China have many things in common, so we hope to find similarities in the distribution of press publications in Vietnam.

IDG publications in Vietnam will be similar to those made by the group in other countries. We summarize all information related to information technology’s global growth then forward it to specific countries to meet their demands for information. We also classify the information to fit the specific requirements of each country. IDG’s primary goal in investing in Vietnam is to help the Vietnam’s information technology industry improve its performance.

What publications will be marketed in Vietnam?

We have signed a deal with Saigon Times for the issuance of Computer World magazine next June. Further, we intend to cooperate with the Science and Technology Ministry in the publication of a Bio-technology journal. Those publications, written in Vietnamese, will provide all related available information about global information technology growth. We also want to provide information about Vietnam to other countries to help Vietnam attract more investment.