FPT, the largest IT firm in Vietnam, offers software services like telecommunications has sold its shares of worth US $ 36.5 Million to two overseas investors.
FPT, the largest IT firm in Vietnam, has sold its shares of worth US $ 36.5 Million to two overseas investors, as per news published in Reuters. Intel Capital & Texas Pacific are investing in FPT, which offers software services like telecommunications, outsourcing & back-end operations.
"The investment signifies that foreign companies are now looking at a post-war Vietnam with high literacy rate and accession to WTO (World Trade Organization)," said an analyst at RNCOS.
Vietnam's economic growth (8.4 % during the year 2005) has been quite steady recently. Technology market, estimated to reach US $ 800 Million, is seeing a growth rate of around 20 % every year.
As per a research from NM Rothschild and Sons Limited, an investment bank, exports till July this year reached US $ 22 Billion, an annual rise of 25 %. FDI (Foreign direct Investment) in Vietnam reached a US $ 5.8 Billion in 2005, rising by 37 % from 2004.
As per experts, Vietnam is expected to make US $ 5 Billion from hardware & software exports but the govt. should be careful from competition from ASEAN (Association of Southeast Asian Nations) markets & China offering cheap imports.
After accession to WTO, Vietnam needs to cut Industrial import tariffs on PCs, electronic components & digital equipments.
Vietnam is transforming into a potential market for foreign IT investors. Earlier, Technology giants like Fujitsu & Canon & now, Intel have made significant investments in fastest growing market in Southeast Asia.
Tremendous growth is being seen in the number of web & mobile users in Vietnam. Number of Web users is estimated to reach around 13 Million in 2006 from a mere half-a-million users in 2000. Moreover, Vietnam's cell phone subscriber base is increasing at a rate of 63 % annually.
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