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Online Service And Digital Content Will Be Very Attractive

IDG Ventures Vietnam has recently continued to invest in Vinapay, Yeu Am Nhac and Cyworld so IDG Ventures Vietnam has made investment in 14 Vietnamese companies with total capital investment of US$20 million. It’s estimated to pour about US$6-10 million in 6 more companies by the end of year 2007. the Investment Newspaper’s Huyen Anh reporter has interviewed Mr. Nguyen Hong Truong, Director of Business & Technology Development of IDG Ventures Vietnam.
Could you reveal IDG Ventures Vietnam’s other investment plans beside pour capital in Vinapay, Yeu Am Nhac and Cyworld this year?

IDG Ventures Vietnam shall make investment in technology-related, especially in digital content such as online service, mobile phone content service… we are very confident in the development of these fields in Vietnam, in reality, they have grown up much further faster than that of what we have predicted.

Dear sir, How have IDGVV-invested companies operated?

All IDGVV-invested companies have and have been developing very fast in the market gradually becoming the top leader companies for instance, Vinagame takes top list in online games, Vietnamworks, a top leader in online-job and ChoDienTu ranks top in e-commerce…

Now the indirect investment flow in Vietnamese IT industry is fairly strong, How do you comment on this trend?

The direct and indirect investment inflows in Vietnamese IT industry shall keep on. An essential trend as Vietnam becomes official member of the WTO. In the other hand, India, China have transferred doing outwork to Vietnam where delivers cheap labor cost. This trend will create favorable conditions for Vietnam go further in making software furthermore the increasing growth of internet users and mobile phone subscribers in Vietnam that will open up more chance for relevant products and services. We shall be interested in “ Made in Vietnam” projects which are similar to Yahoo, Google, MySpace or eBay. The foreign direct investment in Vietnamese IT industry just holds 2-3% at the moment while in other regional countries, the figure increases 30-40%, the balance between indirect and direct investment will be changed, there will more direct investment in Vietnam’s entry to the WTO.

VinaCapital has recently set up technology investment fund, how do you comment about it ?

One of the rulers of the economy is the presence of venture capital funds, especially in the ICT sector, a fast-growing field. A new investment fund launched to show prospective signal for Vietnam’s economy and prove the advantage of competition of Vietnam, there will be plenty of new business opportunities if there are more investment funds, in addition, and the come out of new ITC investment fund has fortified ability of business operation of IDG Ventures Vietnam for more than 2 years.

According to you, which business scope of ITC will be pumped big capital from foreign indirect investment ?

The most attractive scope for investment are telecom, online service and digital content however, the foreign investors shall need time to have thorough understanding Vietnam market and custom of Vietnamese people for instance, why video game so popular in Japan but online game more popular in Vietnam.