Summary of Proposed Investment
Project Number
10943
Company Name
GLOBAL CYBERSOFT (VIETNAM) JOINT STOCK COMPANY
Date SPI Disclosed
Oct 30, 2001
Country
Viet Nam
Industry
Telecommunications and Technology
Projected Board Date
Dec 7, 2001
Status
Completed
Sector
Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Date Revised SPI Disclosed
Nov 6, 2001
Department
WBG Digital and AI
Environmental Category
C - No Impact
Previous Events
Approved : May 24, 2002
Signed : Jun 25, 2002
Invested : Aug 26, 2002
Project Description
Global CyberSoft is a Vietnamese software company established in July 2000. During Sep-Dec 2000, GCS generated US$332,000 in revenues and has approximately US$1.1 million of software outsourcing contracts in hand for FY2001. The company intends to capitalize on the worldwide software-outsourcing trend by uniquely positioning itself to be a low cost, high quality, supplier of factory automation software for the global semiconductor industry. The company is also developing proprietary enterprise-based factory automation software products. GCS can be found on the web at: http://www.globalcybersoft.com
It is expected the recent trade deal with the United States - which is pending ratification by the United States Senate - will help to open a previously closed economy, and Vietnam is developing the skills base to be able to compete in high-technology exports. Nonetheless, Vietnam is a country only part way through a transition from command economy towards the market, and remains one of the poorest economies in Asia. This project will support efforts to catalyze growth and development through high-end services exports, creating quality jobs and also acting as an important symbol of the benefits of continued reform, opening up, and support for education. The project will have significant developmental impact by: (i) potentially creating hundreds of highly skilled software development jobs in Vietnam over the next two to three years; and (ii) helping to train workers in Vietnam by exposing them to international best practices. This venture would contribute to bring higher standards of software development to companies in Vietnam. In addition, while salaries for IT workers in Vietnam are extremely low by international standards, GCS is one of the best paying employers in the local market. The company’s business plan calls for the employment of approximately 800 software engineers in Vietnam by the end of 2004.
While IFC has made twelve investments to date in Vietnam, GCS would is the first ever investment in the ICT sector and only the third IFC equity investment in the country. An investment in GCS would represent an opportunity for IFC to support the emerging Vietnamese software industry, which is still at a nascent stage. The project would support a group of local entrepreneurs that are providing software outsourcing services to the semiconductor industry in the developed world from a production base centered in Vietnam. IFC''s participation would also be critical to terms of bringing another institutional investor into the Series A round. There is little active venture capital in the ICT sector at the present time, and IFC will have to use its own contacts in the venture capital community and technology sector to help the Company close the Series A round.
It is expected the recent trade deal with the United States - which is pending ratification by the United States Senate - will help to open a previously closed economy, and Vietnam is developing the skills base to be able to compete in high-technology exports. Nonetheless, Vietnam is a country only part way through a transition from command economy towards the market, and remains one of the poorest economies in Asia. This project will support efforts to catalyze growth and development through high-end services exports, creating quality jobs and also acting as an important symbol of the benefits of continued reform, opening up, and support for education. The project will have significant developmental impact by: (i) potentially creating hundreds of highly skilled software development jobs in Vietnam over the next two to three years; and (ii) helping to train workers in Vietnam by exposing them to international best practices. This venture would contribute to bring higher standards of software development to companies in Vietnam. In addition, while salaries for IT workers in Vietnam are extremely low by international standards, GCS is one of the best paying employers in the local market. The company’s business plan calls for the employment of approximately 800 software engineers in Vietnam by the end of 2004.
While IFC has made twelve investments to date in Vietnam, GCS would is the first ever investment in the ICT sector and only the third IFC equity investment in the country. An investment in GCS would represent an opportunity for IFC to support the emerging Vietnamese software industry, which is still at a nascent stage. The project would support a group of local entrepreneurs that are providing software outsourcing services to the semiconductor industry in the developed world from a production base centered in Vietnam. IFC''s participation would also be critical to terms of bringing another institutional investor into the Series A round. There is little active venture capital in the ICT sector at the present time, and IFC will have to use its own contacts in the venture capital community and technology sector to help the Company close the Series A round.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Doug Coulter, Investment Officer
Phone 202 458 7903 (USA)
Email: dcoulter@ifc.org
Phone 202 458 7903 (USA)
Email: dcoulter@ifc.org