(VEN) – Outward investment trends are widespread in the domestic business community. However, to be successful in foreign markets, domestic companies must thoroughly understand the local culture and legal environment, plus also nourish their investment aspiration.
Movitel, the brand of Viettel in Mozambique
Linking for mutual benefits
The Military Telecom Corporation (Viettel), one of the prominent names in the domestic business community, has invested in seven different countries around the world, with its most successful market being Mozambique under the Movitel brand.
Viettel has promoted investment in Mozambique since 2008, to December 11/2012 licensed to operation in November 2011 and began to operate in May 2012. After half a year time, Movitel was awarded the prize for the enterprise that had the best solution to improve telecommunications in rural areas of Africa in November 2012. And in May 2013, Movitel attained US$113.5 million in revenue and registered about two million subscribers. Currently, the total number of employees working for Movitel has reached up to 1,726 people, with more than 1,400 of which being natives.
Deputy General Director of Viettel Le Dang Dung when sharing his successful experience in Mozambique said “In the investment process, Viettel has always focused on social activities for the benefits of Mozambican people. As of May 2013, Viettel’s total funding for projects deployed in Mozambique was worth about US$20.56 million including providing free internet for 1,416 schools ( for the first phase); funding and handing over 40 points of television to Mozambican Government and ministries; providing 800,000 SIM cards for the Mozambican military, police, teachers, and students; offering training courses for local people and employing them to work in telecom sector.
Mange to stay firm in foreign markets
FPT Group is also one among successful businesses in foreign markets, that has invested in 13 different countries around the world including US, UK, Germany, France, Australia, Japan, Philippines, Thailand, Cambodia, Myanmar, Malaysia, Laos, and Singapore.
According to Deputy General Director of FPT Group Nguyen The Phuong, the group’s has achieved positive result in overseas investment activities, with revenue from outward investment last year reaching US$90 million, an increase of more than 30 percent compared to the previous year.
“To succeed in foreign markets, Vietnamese companies must learn about the local culture, especially habits and styles of indigenous people, so as to behave in harmony,” he said.
For example, the Japanese market is a big market for FPT, in terms of culture, Japanese customers are very open-hearted and they may be willing to share what we do not know. So, to work with Japanese companies, Vietnamese companies should prioritize learning Japanese culture. The Japanese are also very serious in saying and doing. Therefore, Vietnamese enterprises should implement in the best way what was made as commitment. FPT understood that very well and has stayed there successfully.
| According to Director of Ministry of Planning and Investment’s Foreign Investment Agency Do Nhat Hoang, the trend of outward investment is growing strongly in Vietnam. Until the end of the first quarter of the year, Vietnamese enterprises already invested in 742 projects abroad with total registered capital of US$15.5 billion |
According to Phuong, in early stages of accessing the Japanese market, FPT focused on establishing close relationships with Nissen. But after many meetings and negotiations, FPT had not signed even a single contract with this potential partner. Bui Hoang Tung who was responsible for direct negotiations with Nissen determined to meet Nissen representatives in person to explain FPT’s plans and sing a song by FPT culture instead of saying goodbye. Through this meeting, Nissen’s leaders found FPT a company with investment aspirations and capability, and agreed to sign a contract. Now, Nissen has become one of FPT’s faithful and regular customers and also helped FPT win many other local customers.
Through the above investment stories of Viettel and FPT, it is clearly seen that, to be successful in foreign markets, apart from the capacity and desire, domestic companies should be interested in the local culture, habits, and practices and also be responsible for indigenous people./.
By Nguyen Hoa
Đăng ký: VietNam News