The Hanoitimes - Among economic fields, Information & technology (IT) and telecommunication have been successful stories of Vietnamese enterprises in investing abroad. However, there is another which few believed it would have been success: tourism
Starting with providing telecommunication service in 2004, 2 years later, Viettel corporation has decided to invest abroad in spite of not being the biggest telecommunication provider in Vietnam. Cambodia was Viettel’s first market. As of present, Viettel has invested 44 million USD in Metfone (Viettel’s brand in Cambodia) with revenue of 150 million USD.
Total value of Metfone’s assets is 300 million USD, and the company is currently valued at 800 million USD. Metfone is not only the biggest telecommunication provider, but also the biggest company in Cambodia. At present, Viettel is investing in 10 countries all over the world (at 3 continentals), in which Viettel is dominating the telecommunication market in 5 countries (Cambodia, Laos, East Timor, Mozambique and Burundi). According to statistics, total revenue of Viettel until the end of June 2017 from investing abroad is 520 million USD.
Metfone, Viettel's successful brand abroad.
The total accumulated revenue from investing abroad of Viettel until the end of 2016 is 6.5 billion USD, while the number for 2016 is 1.4 billion USD. Viettel is also the only Vietnamese enterprise has generated revenue from the foreign market of above 1 billion USD per year. The Corporation has set the objective of being one of the top 10 biggest telecommunication providers in the world in investing abroad by 2020. According to report of the Foreign investment agency (Ministry of Planning & Investment), Viettel is one of the spotlights of Vietnamese enterprises investing abroad.
In field of IT, FPT is the first company investing abroad (since 1998), but has not had many successes. However, with determination in the strategy of going global, FPT has reaped the benefits in recent years. According to statistics in the first 6 months of 2017, exporting software has brought revenue of 500 billion VND to FPT, the biggest contribution for the company from all departments.
At present, in software development, FPT has its branches in 12 countries. Chairman of FPT Software – Mr. Hoang Nam Tien said, the company has set the objective of having 1 billion USD revenue by 2020. Mr. Hoang Nam Tien said, despite FPT had went global earlier than any other Vietnamese enterprises, but Viettel is the most successful company to date.
In addition to IT and telecommunication, there is another which few believed it would have been success: tourism. As such, Thien Minh corporation has invested in 10 countries and regions, with high ranking in tourism operator in Buffalo Tours brand. In Thailand, the country is well known for tourism, Buffalo Tours is one of the top 10 tourism operator, while the company is in top 5 in Indonesia. “Excluding China, Japan and Korea, Thien Minh is the number 1 tourism operator in Asia”, Chairman of the company Tran Trong Kien said. Mr. Kien added, in tourism operator, the majority of the company is in small scale, while company with 30 personnel can be considered large; meanwhile, Buffalo Tours has more than 500 personnel.
Mr. Kien said, when get out of the Phuket airport (Thailand), tourists can see 1/3 pickup signs belong to Buffalo Tours. In the first 6 months of 2017, revenue from the foreign markets of Thien Minh is 11.2 million USD, and for 2016 is 24 million USD.
Evaluating the activity of investing abroad of Vietnamese enterprises, Deputy head of the Foreign Investment Department Vu Van Chung said, in addition to projects in fields of agriculture, telecommunication and hydroelectric plant with long time of preparation, so that in the first few years, it would be normal for having loss. But when the project starts operating, profits will then come afterward. However, the efficiency of investing abroad is not only profit. It is important for Vietnamese enterprises to enhance status and competitiveness in the global market, which are gained through experiences and new technology during operation in foreign market.