The growth of the community using Internet-based and mobile services has made the competition for providing content apps and online commerce service stiffer. More and more investment funds have announced the plans to pour money into the sector.
The growth of the community using Internet-based and mobile services has made the competition for providing content apps and online commerce service stiffer. More and more investment funds have announced the plans to pour money into the sector.
More money coming
More money coming
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Japanese NTT Docomo, when deciding to inject 19 million dollars in VMG, a mobile phone-based app service provider, stated that the affair is a part of the telecom group’s plan to expand the Asian market. The investment will help VMG focus on developing the solutions in payment, e-commerce and app services on 3G networks.
Docomo has been well known in Vietnam as the telecom network consultant which has been cooperating with VinaPhone for the last many years, helping the telecom network operator develop content services on 3G. Other subsidiaries of NTT group are also owning some companies in Vietnam which operate in the fields of online services and communication.
The agreement of the three investment funds IDG Ventures, Rebate Networks and ru-Net on investing 60 million dollars on MJ Group announced late last week, has provided a new lease of life to the online commerce market. This is the biggest investment affair in e-commerce reported so far.
The new investment projects clearly have the investment capital much higher than the average investment capital in the projects Vietnam saw in the past. However, analysts have commented that the projects not only target profits, but also aim to create an ecosystem of services and establish a large community of users.
IDG Ventures has been well known in Vietnam as the pioneer in exploring the technology service market. It has pour money into 45 companies in Vietnam since it made the first investment deal in 2005. DFJ VinaCapital has invested in over 10 companies, while Japanese CyberAgent Ventures has contributed capital to seven companies. Ru-Net is continuing seeking other projects in South East Asia.
Meanwhile, analysts believe that the deal announced late last week by Rebate Networks will not be its last investment deal in Vietnam. Rachan Reedy, Deputy General Director of IDG Ventures, said that IDG is seeking new investors to expand the network of investors in Vietnam.
New conditions, new opportunities
The scale of the online market has become much bigger than that of seven years ago. The number of Internet users rose from 5 million in early 2000 to 30 million now. The mobile market now has more than 100 million subscribers, while the number of smart devices has been increasing rapidly, which creates a more perfect connection market. The fact that 22 million households are using TVs, can be seen as a fertile land for online services to develop.
General Director of FPT, Truong Dinh Anh, said that the content industry proves to have great potentials to develop, when the connection tendency is growing. “When the market can have such a scale, it is the right time for online services to make a breakthrough,” Anh said.
Than Trong Phuc, Managing Director of DJFV, said that investors should think carefully about when they should “join the games”. If investors come too early, they have to spend time to wait for value chains to develop. And if they come too late, they would miss the best opportunities.
Phuc believes that the community of users is now big enough to develop rapidly. However, the market also needs other conditions to develop. Especially, it is necessary to create customers’ habits and confidence in using the services, which will take most of the time.
Besides, the supply system and payment network have also developed, but the number of credit card and e-wallet users is still not big enough.
(Source: TBKTSG)
Docomo has been well known in Vietnam as the telecom network consultant which has been cooperating with VinaPhone for the last many years, helping the telecom network operator develop content services on 3G. Other subsidiaries of NTT group are also owning some companies in Vietnam which operate in the fields of online services and communication.
The agreement of the three investment funds IDG Ventures, Rebate Networks and ru-Net on investing 60 million dollars on MJ Group announced late last week, has provided a new lease of life to the online commerce market. This is the biggest investment affair in e-commerce reported so far.
The new investment projects clearly have the investment capital much higher than the average investment capital in the projects Vietnam saw in the past. However, analysts have commented that the projects not only target profits, but also aim to create an ecosystem of services and establish a large community of users.
IDG Ventures has been well known in Vietnam as the pioneer in exploring the technology service market. It has pour money into 45 companies in Vietnam since it made the first investment deal in 2005. DFJ VinaCapital has invested in over 10 companies, while Japanese CyberAgent Ventures has contributed capital to seven companies. Ru-Net is continuing seeking other projects in South East Asia.
Meanwhile, analysts believe that the deal announced late last week by Rebate Networks will not be its last investment deal in Vietnam. Rachan Reedy, Deputy General Director of IDG Ventures, said that IDG is seeking new investors to expand the network of investors in Vietnam.
New conditions, new opportunities
The scale of the online market has become much bigger than that of seven years ago. The number of Internet users rose from 5 million in early 2000 to 30 million now. The mobile market now has more than 100 million subscribers, while the number of smart devices has been increasing rapidly, which creates a more perfect connection market. The fact that 22 million households are using TVs, can be seen as a fertile land for online services to develop.
General Director of FPT, Truong Dinh Anh, said that the content industry proves to have great potentials to develop, when the connection tendency is growing. “When the market can have such a scale, it is the right time for online services to make a breakthrough,” Anh said.
Than Trong Phuc, Managing Director of DJFV, said that investors should think carefully about when they should “join the games”. If investors come too early, they have to spend time to wait for value chains to develop. And if they come too late, they would miss the best opportunities.
Phuc believes that the community of users is now big enough to develop rapidly. However, the market also needs other conditions to develop. Especially, it is necessary to create customers’ habits and confidence in using the services, which will take most of the time.
Besides, the supply system and payment network have also developed, but the number of credit card and e-wallet users is still not big enough.
(Source: TBKTSG)
