Vietnamese state-owned telecommunications company Viettel intends to set up a corporate venturing unit that will invest internationally, deputy chief executive Le Dang Dung has told DealStreetAsia.
Viettel plans to set up the fund as part of an expansion strategy that will involve it investing internationally and diversifying into areas that could fit in with its network infrastructure.
“A lot of startups are using our network infrastructure to develop their products, so this is the base for partnership,” Dung said. “We can also acquire some startups if the founders want to exit.”
Companies that would come under that umbrella include search engines, social networks, e-commerce and e-healthcare. The formation of the unit would push Viettel into a group of Southeast Asian telecoms companies with CVC units, including Philippines-based PLDT, Singapore-based SingTel and Indonesia-based Telkom.
“The expansion into other verticals is an inevitable trend,” Dung explained. “Once the telecom network has grown to a certain stage, if the operator does not provide other services and develop content it cannot grow further.
In addition to expanding its range of services, international investment could also help Viettel grow the number of markets in which it operates. It is present in Cambodia, Laos, Tanzania and Burundi as well as Vietnam.