The VMG Media JSC has decided to sell its 62.25 per cent holding in the VNPT Electronic Payment JSC (VNPT Epay) to South Korea’s UTC Investment Co.
VMG’s Board of Directors approved a contract to sell the 7.47 million shares, signed by General Director Tran Binh Duong on November 4, a representative from VMG told VET but provided no further details.
VNPT Epay is a leader in Vietnam in providing electronic payment services, such as via prepaid cards, SMS, and online games banking. It was founded by the Vietnam Posts and Telecommunications Group (VNPT), who holds 35 per cent, and VMG Media JSC, with 62.25 per cent, as well as other reputable shareholders.
VMG specializes in providing SMS services, online games, internet TV, and music. It also holds 50.5 per cent of the OCG Technology Company and 51 per cent of the IMedia Technology and Services Company.
At the end of last year VMG also sold 6.6 million shares in the Lingo E-Commerce JSC to the Yellow Star investment fund in Singapore, cutting its holding from 99.9 per cent to 31.25 per cent. Its ownership in Lingo declined further, to 20 per cent, and in August the e-commerce company closed.
UTC Investment is a private equity and venture capital firm specializing in buyouts and investments in startups. It also engages in corporate restructurings. The firm seeks to invest in the information services, petro-chemistry, and energy sectors.
It prefers investments in South Korea, with a focus on Seoul and Gyeonggi-do. The firm also makes cross-border investments, primarily in China and Japan. It was founded in 1988 and is based in Seoul, with offices in Beijing and Tokyo.
E-payment is developing quickly in Vietnam but remains modest compared with other countries worldwide. Ninety-one per cent of online customers continue to prefer cash payments, 48 per cent conduct bank transfers, and 20 per cent use a credit card, Ms. Nguyen Thi Nhieu from the Ministry of Industry and Trade told a recent conference on electronic payment services.
E-commerce faces a number of obstacles and difficulties in the country, she said, such as an inadequate legal framework, an absence of support policies, poor socioeconomic factors, the use of cash and a lack of belief in e-payments.
In order to improve e-payment methods, Ms. Nhieu suggested that the government be more active in creating favorable conditions for its development, for example using e-payments in its own affairs and creating a national e-commerce management system.VN Economic Times