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IDG pledges $500 million to Vietnam
Founder and chairman of International Data Group (IDG) Patrick McGovern said the firm would invest 500 million USD in Vietnam ’s information and communication technology industry, tapping an emerging market that shows some of the greatest potential for the sector in the region.
The company will establish two funds, one totalling 200 million USD and the other 300 million USD, said McGovern on the sideline of a five-day meeting on the outlook for Vietnam ’s information and communications technology (ICT) industry held in Ho Chi Minh City last week.
The first fund will target enterprises with great growth potential. The second, known as the Growth Fund, will be used to re-finance firms that have already received investment from IDG for expansion.
IDG expects to launch the 200 million USD fund by the end of this year and the Growth Fund by 2010.
McGovern said Vietnam continued to be a gold example of ICT development with annual growth of 15 percent and a ICT labour force of young workers.
“Vietnamese youth today have good knowledge and awareness of the sector. Their working skills can now meet the strict requirements of ICT firms,” he said.
McGovern said IDG-invested companies had registered annual growth of 30-40 percent and that their products had begun entering foreign markets.
“That explains why IDG continues pledging fresh investment in the country’s ICT sector,” he said.
Asked whether Vietnam ’s current economic difficulties were impacting on the ICT sector, McGovern said the country’s slower economic growth had a slight impact on the industry.
However, he said the slow-down was only a short-term impact and macro-economic policies implemented by the Government will help to stabilise the situation soon. McGovern added that he expected inflation could be under control within the next five or six months. McGovern said inflaction was impacting on both customers and enterprises.
IDG has invested in Vietnam via IDG Ventures Vietnam, which was established in 2004.
With initial capital of 100 million USD, IDG Ventures has poured capital into businesses with growth potential and those with innovative business ideas.
IDG is one of the leading technology media companies in the world and its globally branded product lines reach more than 200 million technology buyers in 92 countries.
IDG owns the IDG Ventures network, which is comprised of six independent partnerships managing funds in North America and Asia.
VNA
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