- Media
Investment For Painkiller Tablet
The journalist of PC World Vietnam has an interview with Mr. Nguyen Hong Truong, Director of Business & Technology Development. IDG Ventures Vietnam about ventures capital of IDG in Vietnam.
Could you evaluate about the opportunity of Vietnamese IT industry in the receipt of foreign capital?
It’s the Vietnam where has constantly been received several foreign capital inflow sources for several recent years. It would the common trends in the emerging economies. The first wave of investment in the 1990’s when IDG Ventures has invested in China and gained successfully while Vietnam also has received a lot of Foreign Direct Investment sources from the developed countries. The following wave of investment between 2004-2005 periods, IDG Ventures has selected Vietnam market just after China. IDG Ventures has recently made investment in India and coming one will be Korea.
The emerging economies are mainly in Asia, Northern America and Middle-East countries in which highlight ones: Brazil, Russia, India and China (BRIC) and ASEAN countries. PCW has predicted that China’s economy would be equal to that American one by the year 2050 and the world’s third largest economy is India and even these include Brazil, Russia, India and E7 group, emerging economy comprises of Indonesia, Mexico and Turkey…
Why would be Indonesia in the E7 group that does not consist of Vietnam?
Indonesia has just gone a little ahead against Vietnam, however, this nation has the world’s largest fourth population, prediction is just a prediction and if Indonesia is highly evaluated so Vietnam would also be strongest emerging economies. This will be the opportunity of Vietnam. In reality, Vietnam has high speed of growth rate ranked third in the world after China and India and Vietnam’s population include 60% below age of 30.
Could you estimate about the attraction of ventures capital in Vietnam?
The ventures capital frequently is invested in the potential growth-oriented companies and in fact, they are most IT companies
Vietnamese companies are now lacking of methods to approach investment capital sources and numerous Vietnamese businesses imitate business structure of foreign ones. This way has not ensured of the success.
IDG Ventures Vietnam has invested 16 companies in Vietnam, recently invested ones are VegaSoft offer online clip.vn site and Goldsun Focus Media provides out-of-home service such as advertising on LCD screens at the high-rise buildings, supermarkets…this new advertising channel which has gained successfully in China. The revenue of Shanghai Focus Media company, which has been invested by IDG Ventures, is just behind China TV station and its value is estimated at about US$5 billion.
Goldsun Focus Media is the exclusive company of Focus Media in Vietnam. It’s not just simply imitated foreign advertising structure; they have created new advertising market in Vietnam. IDGVV-invested companies usually become the top leading ones in their target market: consumer market, branch market or all-new market.
Which are the most successful IDGVV-invested companies?
The most successful one possibly is VinaGame company besides there are other more companies, yet IDG Ventures has just invested in Vietnam for 2 years and It will see more fruit in the 2 coming years. The companies have usually chosen the advantageous initial points same as VinaGame such as starting to issue games and company begins to develop different business fields and when they get enough inner strength, the business has grown up to accelerate the development of economy service, industrial content and information technology. They will contribute to transfer structure services in Vietnam market in the common growth trend of the “flat world”. The economy needs to accumulate enough strength through structure transfer to help Vietnam’s strong brands get on international levels.
IDGVV-invested www.chodientu.com company has been hacked, will it cause worry to investors?
Business must take risk sometimes, even eBay and Yahoo used to be hacked. This attack warns us of paying high attention to the security, the damage of the attack is small but the long-term warning on E-commerce in Vietnam.
Do you have any advice to the Vietnamese companies which want to get invested by IDG Ventures Vietnam?
There are a lot of Vietnamese companies have brought the copied structure to IDG Ventures Vietnam, it’s good to have structure for reference however the businesses should know the pain of the market. The invested company knows how to release the pain of the market. The business should be painkiller tablet not a vitamin one which just simply is restorative drug. The painkiller one is more essential. Companies are advised to get understanding about the market and look into the nature of the issue. For instance eBay offers auction to sell extra one and to buy necessary goods so How will the Vietnamese companies be different from this business? How do the enterprises meet the demand to tell the difference between American and Vietnamese consumers? China has book-selling website which is very successful regardless of high-tech solution even it’s so called “bicycle E-commerce”.
Several enterprises just think that they have a certain amount of technologies then IDG Ventures Vietnam will invest and manage for them. This would be a big mistake, the technology itself can solve the problem, the enterprise must master the technology and the leaders of the business must be capable of managing and doing business that turns technology into products for mass consumption. Ventures capital requires businessmen the enthusiasm, consistence and capacity to incorporate non-stop creation.