Thang Long - Hanoi

IT giants gain firm foothold in foreign markets
15/02/2010 | 18:14:08
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It seemed that FPT’s plan to expand its business in the US was scuttled when Vietnam’s leading IT firm entered the market in mid 2008—a time when the world’s largest economy fell into a deep crisis. However, the firm held on to its foothold in the market.

Shortly after entering the US market, the company’s revenue quickly increased and reached 5.5 million USD in 2009. From being a largely unknown player, FPT has become familiar to US partners, such as Free Scale and Omgeo, who have set up business ties with the company.

Apart from the US, FPT also expanded its market to Japan and Singapore where the company reaped gains as well.

According to Deputy General Director of FPT Software Nguyen Lam Phuong, the Japanese market brought in 56 percent of the company’s total revenue, while Singapore brought 21 percent.

The army-run telecom group Viettel kicked off its market expansion plan by cornering the markets in Cambodia and Laos.

In September 2009, Viettel officially launched Metfone service in Cambodia becoming the largest telecom provider in the country with 60 percent of the ADSL service provision market and 50 percent of fixed telephone market. With 2 million mobile phone subscribers, Viettel ranks second among nine mobile phone service suppliers in Cambodia.

The group developed the Unitel network in Laos which offers third generation (3G) service and high-speed wireless Internet for mobile phones and computers. At present, Unitel owns the largest number of base transceiver stations (BTS) - more than 900 - in Laos , accounting 35 percent of the country’s total BTS.

Apart from Laos and Cambodia , Viettel plans to open a representative office in Myanmar .

To date, Viettel and FPT are Vietnam’s first two telecom enterprises investing in foreign countries.

In 2010, FPT targets a growth rate of 20 percent in software processing in foreign markets overall, and seeks to make that figure 100 percent in the US market alone, compared to last year. The company also plans to open a second branch in Europe.

Meanwhile, Viettel expects that Metfone will be a network providing the best cable services in terms of cable network coverage, quality, price and customer care.

Additionally, the group wishes to enter the US and Bangladesh markets to expand its operation./.
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