Venture fund backs more ICT investments
19-JUL-2008 Intellasia | Vietnamnet
Jul 19, 2008 - 7:00:00 AM
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International Data Group (IDG) announced on Tuesday to continue strongly investing in Vietnam's information and communication technology market.
Patrick McGovern, founder and chair of IDG, told the local media on the sidelines of the five-day ICT Outlook Vietnam that opened in HCM City on Tuesday that IDG would invest US$500 million in the domestic ICT industry.
The company will establish two funds, with one totalling US$200 million and the other US$300 million. 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 investments from IDG for expansion.
IDG expects to launch the US$200 million fund by the end of this year and the Growth Fund by 2010.
McGovern said Vietnam continued to be a good example of ICT development with annual growth of 15% and young workers.
"Vietnamese youths today have good knowledge and awareness of the sector. Their working skills can now meet strict requirements of ICT firms," he added.
He informed IDG-invested companies had registered annual growth of 30-40% and that their products had begun entering foreign markets. "That explains why IDG continues pledging fresh investment in the country's ICT sector."
Asked by the Daily 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.
But this is only a short-term impact and macro-economic policies implemented by the government will help to stabilise the situation soon, he said, adding he expected inflation could be put under control within the next five or six months.
McGovern said inflation 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 US$100 million, 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 comprised of six independent partnerships managing funds in North America and Asia.
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