(Reporting from Taipei) Synnex announces today that has entered into the joint venture with the largest information and communication integration service providers, FPT Group, in Vietnam. This move has completed Synnex market expansion plan in the top 3 biggest markets of the South East Asia.
According to Synnex, Vietnam is one of the largest markets in the South East Asia. Its population has more than 90 million and the average age of demographics has less than 30 year-old. The information and communication products penetration rate is only at 20 to 30%.; The Vietnam market is a highly potential market after Thailand and Indonesia. Vietnam market has come to Synnex’s attention for many years. After comprehensive market research and high level management visits and interviews, finally, has struck a deal with FPT to strategic alliance and invested in its distribution subsidiary (“FTG”). The deal has worth at USD35 million for 47% ownership of FTG. The joint venture company will later be re-named as “Synnex FPT Distribution Company”.
FPT Group is founded in 1988 and is the first high-tech company in Vietnam. The business scale of FPT has reached more than USD 1.8 billion in 2016. The businesses are ranging from 3C distribution, information integration service, telecommunication service operator and software outsource service etc. and has gained remarkable corporate image. FTG is the largest ITC distribution service provider, with comprehensive channel deployment and logistic centers in the fourth largest cities across the country. The product portfolio has encompassed hardware, software, system, commercial system, mobile etc., and professional after service business.
The strategic alliance has been descripted as the top-notch combination of the 2 corporates: To Synnex, it is a quick move to get into the fast-growing Vietnam market and, in the meantime, complete its anchors into the 3 largest market in the region. It will be an important growing engine for Synnex to explore in the near future. While to FTG, by having Synnex as the partner, FTG will access to Synnex’s resource and know-how in product management, channel management, logistic management and operation management. It will quickly enhance the company management ability, business scale and efficiency, and for the long term, build the stronger foundation for future growth.
Furthermore, to leverage with Synnex established partnership & relationships with the major vendors, FTG will become a member of global ITC distribution group from as a local distributor.