Vinamilk targets the Cambodian market

The quickest way to do this is through an M&A.

Viettel, the military industry & telecom group, began thinking of making outward investments many years ago. Cambodia and Laos were the first markets it targeted.

In 2009, Viettel launched Metfone, a telecom network in Cambodia, and Unitel in Laos after M&A deals. In Cambodia, Metfone, a subsidiary of Viettel, took over Beeline to set up a Vietnamese owned mobile network.

In its strategy that focuses on developing technology divisions in 2018, FPT, the largest Vietnamese IT group, seeks M&A opportunities with firms from the US and Japan. It plans to spend $100 million on M&A overseas.

According to FPT’s President Truong Gia Binh, the firms targets either operate in technology sector or related fields, and have a local workforce and revenue of $50-200 million.

These will bring advantages in expanding markets while ensuring ownership and the best benefits for the company. Once the overseas M&A strategy is implemented successfully, FPT will have about 200 qualified local workers.

As the US is now the second largest market for Vietnam’s software exports, FPT decided it will be the priority market for M&A. If acquiring firms in the US, FPT will also have advantage in visas and meet fewer barriers in customs and tariff.

A part of the M&A strategy has been completed. FPT last July paid the initial amount of $30 million to acquire 90 percent of shares of Intellinet Consulting. The remaining money, about $10-20 million, will be paid by FPT after a period of operation, based on Intellinet’s business result.

After selling the distribution and retailing divisions, FPT has been focusing on software export and M&A. The corporation’s leadership is determined to step up M&As overseas because it believes it is a ‘shortcut’ that allows them to catch up with new technology tendency. Besides, this also serves the corporation’s strategy to go global.

Four years ago, FPT took over RWE IT Slovakia and changed its name to FPT Slovakia. Most recently, the company brought a $100 million contract to carry out digital transformation for InnogySE.

FPT’s finance report showed that overseas markets brought revenue of VND4.65 trillion in the first seven months of the year, or 38 percent of its total turnover, twice as much as the same period last year.

Vinamilk, the nation’s leading dairy producer, targeted the neighboring Cambodian market when spending tens of million of dollars to team up with Angkor Dairy Products to set up a factory there in 2014 and later when it took over the entire factory in 2017.

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MaiChi