Dialing up foreign telecoms markets

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Viettel deputy general director Nguyen Manh Hung said local telecom firms were under pressure when stepping into world markets.

“When setting foot in foreign markets like Laos, Cambodia and Haiti Viettel must compete face to face with world’s telecom giants with billions of US dollars in revenue every year while that of Viettel remains modest sum of about $5 billion,” Hung said.

Hung said the Vietnamese government should develop a national strategy on outbound investment in information and communication technology (ICT) field, promote telecom investment abroad through Vietnam’s foreign-based embassies or introduce concrete support policies such as extending enterprise income tax payment deadline in the first three years for businesses with outbound investment projects.

Quang Trung Software City Development Company chairman Chu Tien Dung recommended the Ministry of Information and Communications establish a specialised body to promote the sector’s outbound investment.

Similarly, Global CyberSoft general director Ngo Duc Chi said it was necessary to set up a particular organisation or centre to help local firms access international software outsourcing market since many local firms have the potential to export software but they do not know how to contact foreign partners.

The Ministry of Planning and Investment’s Foreign Investment Agency figures show that by end of February 2011 Vietnamese companies operated 575 investment projects worth more than $10 billion in total registered capital in 55 countries and territories worldwide. Of which, 28 projects were in ICT field valued at $740 million.

Most recently, in February 2011 Viettel was honoured with an investment licence to invest $300 million in Peru, which was also Vietnam’s first licenced outbound investment project in 2011.