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Truong Dinh Anh, General Director of the Corporation for Financing and Promoting Technology (FPT), which has been known as one of the top web service providers, said that if he had the opportunity to start again, he would push FPT to join the mobile and digital content service market in a more assertive and daring way and make FPT be the leader.
“In the past, we could not see the full potential of the content industry, when the tendency of connecting people spreads out to every individual any time and any where,” he said.
Especially, Internet service companies are the “aiming points” of many investment funds. IDG Ventures Vietnam (IDGVV), which has been well known as a big investor in the field, has been operating in Vietnam for six years. Besides IDGVV, DFJ VinaCapital has also set its foot in nine companies which provide relating services.
The “aiming points” of investment funds are local enterprises whose solutions can be used globally. According to investors, it takes five years in general to prove the feasibility of a project. The projects so far have the average investment capital of one or two million dollars. A lot of small enterprises seek capital, but many companies with big potentials still need experiences of venture funds to heighten the values of the companies before the companies call for capital from the public.
In general, an investment fund would be considered as successful if it makes investment in 10 companies, and three of which can develop well. If one of the companies make breakthroughs and become the leader in the market, it will bring the profits much higher than the investment capital.
The values of dotcom companies can be seen on the stock market, where the public gives them the values much higher than visible values, not only in the capital, an expert said
Rebate Networks, a German investment fund which has been present in 29 countries, has also injected money in muachung.com of Dia Diem Company, the move which helps it enter Vietnam.
Recently, Japanese investors, such as Softbank, Mitsui and NTT have also poured money into different services. According to Nguyen Hoang Ly, General Director of Cong Dong Viet (Vietnamese Community) – the partner of Japanese NTT-Data, Japanese investors are powerful in capital and experiences, therefore, they want to make investment in strong companies in the domestic market. Especially, they seek the companies which have professional style of working and have suitable culture.
Waiting for the supply chain to get perfect
According to Than Trong Phuc, Managing Director of DFJV, the moment of “joining the games” always plays a very important role which decides the success of investment affairs. If joining the games too soon, one would have to spend time to wait for other value chains to develop together. Meanwhile, if coming late, one would lose the opportunities.
Experts say that there are three factors necessary for the development. First, the number of Internet users needs to increase (this has become true). Second, it is necessary to make Internet services become familiar to people, and make the service using a habit of people (this will take most time). Third, the supply system, including the payment network, though having developed; the number of credit card or e-wallet users is still not big enough, because they still worry about the information insecurity.
In general, the three conditions are better, according to Phuc, who says that DFJV will still prioritize making investment in B2C, B2B projects, social networks, or creative models suitable to the Vietnamese market.
Source: SGTT
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