The second GLEBMA/EMBA business meeting in Ho Chi Minh City was with IDG Ventures Vietnam, a venture capitalist fund specializing in the media and technology space. IDG Ventures Vietnam was the first venture capital fund of its kind to be established in Vietnam when it was founded in 2004 as an offshoot of IDG, a tech-publishing company known for magazine publications such as PC World.
The firm currently has 10 percent to 30 percent equity in 24 active companies and six local television channels. With incredible recent gross domestic growth and more than 40 percent of the Vietnamese population being “digital natives” under the age of 24, IDG Ventures is well-positioned. The tech scene, however, is still very small. It will take some time to grow into a true tech-development hub because there are not enough homegrown developers coming out of universities in comparison to other countries in this region.
One of IDG’s focus investment areas is gaming, which is a relatively new industry to Vietnam. Globally, this industry generates more than $71 billion annually, according to the Entertainment Software Association 2015 annual report. However, this opportunity is not so easily tapped. Entertainment in Vietnam is regulated by the Ministry of Information and Culture, and the concept of online and mobile gaming also warrants consultation with the Ministry of Sports and Culture. We learned the value of finding a connected partner who can help local startup tech firms navigate the regulatory environment in Vietnam.
As one of IDG’s investments, VinaGame, took off, the regulatory agencies became concerned after learning that users spend multiple hours per day on the games. IDG collaborated with the agencies to show what the gaming companies are trying to do and how the new industry could generate revenue via advertising to support the country’s internet infrastructure by conducting studies in neighboring Korea and China.
– Written by: Ramneek Bali, Diana Rodriguez and Ruchika Nagrath
Read the first post about the EMBA and GLEMBA Class of 2017 international study tour to Vietnam and South Korea: EMBA and GLEMBA Class of 2017 Tour of Agility Logistics
