VietNamNet Bridge - In the race for investment in Vietnam’s information technology industry, US businesses seem to gain the upper hand with over 30 projects, representing 10 percent of the US’s total number of projects in the country.

Encouraged by Vietnam’s recent IT growth and potential, an increasing number of US investors armed with large amounts of capital have flocked to the country to join with Microsoft, Oracle, Hughes Networks, Lucent Technologies and VITC who set their early foot steps here in the 1990s.

Within a month late last year, Asia’s second fastest growing economy welcomed three newcomers. DFJ VinaCapital Fund came first with 50 million USD.

Texas Pacific Group Fund and Intel Capital followed suit by jointly pouring 36.6 million USD into the country’s leading IT firm, Corporation for Financing and Promoting Technology (FPT).

IBM fuelled the tide by deciding to set up shop in the Ho Chi Minh City National University’s software technology park by establishing a global service centre, the first of its kind in the country, to provide high-quality IT services.

Jabil Circuit Inc. meanwhile plans to cash in on the market with an initial investment of 100 million USD to build a test and assemble plant for print circuit boards and telecommunications, network and electronic equipment in the booming Ho Chi Minh City Hi-tech Park.

The southern largest hub’s hi-tech park also welcomed Intel on board with a 1 billion USD project to construct a massive semi-conductor assemble and test plant.

The US-based giant had previously already obtained successes from its IT application programme for the country’s education sector.

Than Trong Phuc, General Director of Intel Vietnam, said the group’s decision is another evidence of foreign hi-tech companies’ willing to pour huge sums into Vietnam, adding that this is also a golden chance for the country to compete with China and India in IT development.

Frances A. Zwenig, Counselor of the US-ASEAN Business Council, cited Intel’s decision as the start of a wave of US investment into Vietnam’s IT industry.

After a recent fact-finding trip to Vietnam, the well-known PC producer Dell, which is operating a computer factory in Malaysia, said it plans to invest in the country’s booming industry.

(Source: VNA)