Comvik Int'l AB Pledges Stable Investment in Vietnam
Kinnevik-Comvik group organised Vietnam Day in Sweden on November 8, 2004. The event was designed to promote Vietnam's image among Swedish investors. VIB Forum had an interview with Mr. M.A. Zaman, President of Comvik International AB in Vietnam.
Why has Kinnevik-Comvik organised Vietnam Day in Sweden?
As the Vietnamese economy grows stronger, telecommunications also develop, and we have a special connection to this growth. During the visit of Deputy Prime Minister Vu Khoan last year, we committed to become one of the first investors in the development of infrastructure supporting Vietnamese economy. For the same purpose, we have organised this event to help Swedish businesses understand investment opportunities here and invite over 100 businesses to invest in Vietnam.
What contribution has Comvik made to Vietnamese telecommunications?
Comvik has made a great contribution to the development of telecommunications in Vietnam in terms of capital, technology and human resource development. We have implemented a ten year programme valued at US$7 million to train experts, engineers, financial and marketing staff. I believe that it will help achieve a new approach in business activities. Comvik has helped VMS-MobiFone, a wholly Vietnamese owned enterprise, to independently run its business activities. We are not at the helm but involved at a systems level to ensure smooth operation, although our financial contribution has been quite large, over US$200 million.
Do you think that it is time to make further investment?
Yes, we do. We will invest at least US$15 million and even more if necessary to meet demand, as the labour force in Vietnam is very attractive. I still recall the statement made by former Prime Minister Vo Van Kiet that 80 per cent of the Vietnamese population are under 25 years old and 100 per cent educated. I think it is a firm foundation for long-term business activities.
Is it the right time to shift from BCC to JV in telecommunications?
I think the government has done well in changing the investment format. It is a good decision for Vietnam and also good for foreign companies. It is important that foreign investors must listen to and understand the policies of Vietnam’s government. The government did not grant too many investment licenses as in Thailand, Indonesia or even Malaysia where telecommunication companies flooded in and found a small market share. In Vietnam, the government is slowly opening the market and foreign investors can see the stability of their investment.
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