How much are Vietnam IT companies?

Have you ever wondered how much are Vietnam IT companies? To me, I am really interested in this and often watch the market value of international giants via Google Finance. However, many local companies are still not on stock market, so I often find out by basing on the similarity to other foreign ones. Let take a look at some outstanding IT companies at the beginning of 2010 

1. Viettel:  The net income in 2009 is 10.000 billion VND ~ $540 million, the P/E (got from China Mobile) 11.83. So the market value of Viettel is estimated at $6.394 billion. So if they can reach their goal $15 billion revenue in 2015, the market value of the company will reach $25~30 billion and Viettel may become the largest company in Vietnam at that time. 

2. FPT: No need to calculate :), just look at the stock market. The market value of FPT is now $610 million 

3. CMC: The revenue and income is about 1/5 of FPT. So the market value of CMC may range from $120-$150 million 

4. Vinagame: Some people speculate the net income of Vinagame in 2009 is 500 billion VND ~ $27 million, the P/E 17.15 (got from Kingsoft, 53.29 if got from Tencent), so the market value of Vinagame is about $463 million 

5. MISA: The net income 2009 is 17 billion VND ~ $0.918 million, the P/E is ~20, so the market value of MISA is about $18.36 million 

6. Lac Viet: The net income 2009 is 9 billion VND ~ $0.486 million, the P/E is ~15, so the market value of Lac Viet is about $7.29 million 

7. Dot-com companies: According to my information, the investment from VC to these companies range from $0.1 - 2 million USD for 30% of the company. So the market value of these will range from $0.3 - 6 million.

Some conclusion from above statistic

- Telecom companies like Viettel, VNPT are the biggest players. Then to some companies FPT, CMC... which has a good distribution system, outsourcing, information systems... Then to the medium ones like MISA, LacViet... Then to smaller ones include dot-com companies

- The fast growing of young online companies is a big surprise. It just takes Vinagame 5 years to equally reach the value of FPT in more than 20 years, for some other dot-coms 3 years to reach the value of old ones like Lac Viet, Misa... So I think the trend of online services and softwares will become popular in upcoming years, as it has much potention compared to others. 

- With the strong ambition of government to develop Vietnam into a strong ICT country, it will contribute to make this industry explode, i.e more companies, more revenue, more opportunites for IT developers...

So if you are a local developer, you may now have many chances to become a millionaire in the future ;)). Of course, building a giant like FPT, CMC... may be impossible to you, but a smaller one under $10 million would be possible. Everything you need is just a good understanding about the market to capture the opportunity, and a strong tech team to turn ideas into products. Then try to stick to other giants like Viettel, VNPT, FPT... those will provide you with all remaining things. But that's just my thought, do you think so ^_^

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