Offshore investments bring profit to local ICT firms

VietNamNet Bridge – Vietnamese information and communication technology (ICT) firms have reported profit from their offshore operations which are more active than ever in the face of stronger competition at home.

A source from FPT Group said this group’s revenue was estimated at VND35.11 trillion last year, up 23% against the previous year and 10% higher than targeted. But its profit fell by 2% to around VND2.46 trillion.

The shrinking online game segment and difficulties related to information technology projects on the domestic market hit FPT Group’s profit growth. However, the group’s offshore investments paid off last year, with its revenue growing 37% to around VND3.684 trillion and its profit edging up 13% to VND584 billion.

FPT is stepping up foreign investment activity to cash in on rising demand in the global IT market whose annual spending is put at over US$1 trillion.

FPT chairman Truong Gia Binh told the Daily that overseas markets bring in plenty opportunities for FPT and that its main markets include the United States, Japan, Singapore and Myanmar.

Viettel Group said 2014 was a successful year for its offshore investments. Last year, these investments contributed significantly to the group’s revenue which grew 20% to VND197 trillion and its pre-tax profit which rose 15% to VND42 trillion.

Last year, Viettel’s offshore operations brought total revenue of US$1.2 billion, up 25%, and pre-tax profit of US$156 million, up 32%. The profit Viettel has earned from its overseas investments so far totals US$278 million.

With the launch of mobile services in Peru and Cameroon last year, Viettel has been present in nine foreign markets with a combined population of 175 million people.

In addition to Viettel, VNPT and MobiFone also plan to expand investments in foreign markets. For instance, MobiFone has explored a number of markets including Myanmar while VNPT is seeking opportunities to provide telecom and information technology services in Myanmar, Cambodia, Laos and Cuba.

VNPT also plans to set up a subsidiary in Hong Kong, said VNPT general director Tran Manh Hung.

Source : http://english.vietnamnet.vn/