Samsung SDS acquires 25% stake in Vietnamese IT service firm

By Baek Byung-yeul

Samsung SDS is expanding its business in Southeast Asia with the firm agreeing to purchase a 25 percent stake in CMC Corporation, a leading IT service firm in Vietnam, the system integration arm of Samsung Group said Monday.

Combining the Samsung affiliate's state-of-the-art technologies such as artificial intelligence (AI), big data analysis and internet of things (IoT) with the Vietnamese firm's local business network and brand awareness, the two firms will seek business opportunities in smart factories, cloud computing and cybersecurity in Vietnam.

With about 3,000 employees, the Hanoi-based firm has been active in system integration, software development, cloud computing and IT infrastructure management there.

“CMC Corporation is Vietnam's second largest IT firm, posting sales of around 260 billion won ($219 million) in 2018,” a Samsung SDS spokesman said, adding that the firm cannot disclose the purchase price of the stake in the Vietnamese firm.

Samsung SDS has been strengthening its partnership with the Vietnamese firm as the two agreed to co-develop services for smart factories and cybersecurity in June 2018.

CMC Corporation said the investment would help the firm fulfill its annual sales goal of $1 billion by 2023.

“CMC has agreed to forge a partnership with Samsung SDS, following AT&T, Oracle, SAP and Microsoft. I am sure that the two firms' strategic partnership will contribute a lot to advancing the digital economy globally,” said Nguyen Trung Chinh, chairman and CEO of CMC Corporation.

Samsung SDS CEO Hong Won-pyo said the two firms will work together in helping their customer companies digitize.

“With this investment, we could secure a strategic partner who can do businesses together in Vietnam and Southeast Asia. By cooperating closely with executives of CMC Corporation, we will actively support our customer companies' digitization efforts,” Hong said.