- Media
IDG Gives Vietnam’s IT a Hand
Apr 15, 2005
In late March 2005, IDG Ventures Vietnam of the IDG Group opened its office in Ho Chi Minh City, stating that it would invest in two IT (information technology) businesses in Vietnam. The two companies are a domestic company, PeaceSoft, and a foreign-invested company, iSphere.
Choosing an investor
IDG Ventures Vietnam’s director, Nguyen Bao Hoang said IDG Ventures Vietnam chose these two companies because they are young, active, and have a qualified workforce.
PeaceSoft’s services and products are used in various fields such as education, healthcare, insurance, administrative management, and telecommunications. PeaceSoft has won many prestigious awards, such as ‘IT Golden Globe 2003’, ‘Notable Face of Vietnam IT 2004’, and ‘Vietnam Intelligence’. With its website www.chodientu.com , PeaceSoft has become a leading company in the development of the e-commerce market in Vietnam.
iSphere is a successful, creative company that is experienced in the development of IT applications for businesses and website-based applications. iSphere’s major customers include VITC (Vietnam International Telecommunications Company), Machino Auto Part Company Limited, and Goldennet Interprise.
IDG expects to introduce products and services from these two companies onto the market by the end of this year.
Benefiting from IDG investment, PeaceSoft and iSphere will be more favorable to develop while exploiting their potential. PeaceSoft’s managing director, Nguyen Hoa Binh reported that his company would use IDG investment to develop its traditional products, to expand its market, and to start a new e-commerce project for developing CHODIENTU.COM. iSphere’s director, Jin Wook Lim, said that iSphere would use IDG investment to further develop its infrastructure and trademark, to research and develop new business areas, and to expand markets in Vietnam and the Republic of Korea.
In order to ensure optimal investment, IDG Ventures Vietnam’s director will work closely with the directors of PeaceSoft and iSphere, which will give the two companies an opportunity to learn from IDG’s experience in management and market expertise. In addition to this, IDG will hold many conferences introducing terms a business must satisfy before accessing its investment. Vietnamese businesses can come to IDG’s office to learn about these terms.
Businesses eligible for IDG investment
Deputy chairman of the Ho Chi Minh City People’s Committee, Nguyen Thien Nhan (first from the left), and IDG Ventures Vietnam’s leaders at IDG’s office opening ceremony in Ho Chi Minh City
Mr. Hoang said before deciding to invest in a business, IDG looks at its business opportunities, financial situation, and manpower. In Vietnam, business opportunities are plenty and financially successful businesses also abound, which is why the third factor, manpower, is often the most important. For IDG, manpower refers directly to the ability of the company’s leader. A company manager must be enthusiastic and work for the company’s development and ensure worker interests, and before deciding to invest in a company, IDG also looks at the company’s leader.
Vietnamese businesses must have good, active managers who can outline appropriate business strategies, and have certain market shares if they expect to access investment from IDG and other sources. At the opening ceremony of IDG’s office in Ho Chi Minh City, the deputy chairman of the Ho Chi Minh City People’s Committee, Nguyen Thien Nhan, said that IDG’s investment in a Vietnamese IT company is a good sign for Vietnam’s IT industry, and that the city will support IDG’s operations in Vietnam and hopes it will succeed in Vietnam. Mr. Nhan also expressed his hope that companies from other fields in Ho Chi Minh City, not only IT companies, will benefit from investment from international financiers