“Collaborating with Korean Companies to Target Global Markets… Offering World-Class Services at 20-30% Lower Cost Than Korean and Japanese Companies”
Vietnamese information technology (IT) services provider, CMC, will establish a South Korean subsidiary and enter the Korean market in earnest.
CMC Chairman Nguyen Trung Chinh announced in an interview with Yonhap News Agency on Tuesday (30th) that the company will hold a launch ceremony for CMC Korea in Seoul on the 8th of May.
With approximately 5,000 employees, CMC is a leading player in Vietnam’s IT service industry, specializing in System Integration (SI) and IT infrastructure services.
In particular, CMC Corporation has a strategic partnership with Samsung SDS, which acquired a 30 per cent stake in the company in 2019 and became its largest shareholder. Chairman Chinh emphasized, “The alliance with Samsung SDS, which marks its fifth anniversary this August, has been a significant catalyst for the company’s leap forward.” He added, “Since the partnership, the company has achieved an average annual growth of 15%, and its market capitalization has tripled compared to five years ago.”
For over two decades, the company has provided IT infrastructure services to Korean companies venturing into Vietnam, collaborating with industry giants such as Samsung Electronics, SK, LG, KT, Hanwha, and KB Kookmin Bank.
However, with the establishment of CMC Korea, the company aims not only to expand its business in the Korean market but also to collaborate with Korean enterprises to venture into the global market.
Chairman of CMC Corp explained, “Currently, we are bidding for projects alongside Samsung SDS in Vietnam as well as in Korea and Singapore.” He described the selection of the Korean market as the foundation of CMC’s global expansion strategy, stating, “As you know, Vietnam and Korea share a comprehensive strategic partnership. Korea is not only a global leader in the IT industry but also culturally similar to Vietnam.”
The chairman expressed the company’s goal of providing high-quality services at reasonable prices as a Vietnamese company with abundant manpower to address the shortage of IT talent in Korea.
Furthermore, he highlighted CMC’s advanced technology solutions in various fields such as artificial intelligence (AI), cloud, IT security, and smart factories, emphasizing that the company can offer similar services at a cost 20-30% lower than Korean and Japanese companies.
However, Chairman Chinh clarified, “CMC does not rely on low labor costs,” emphasizing the company’s focus on cost reduction and productivity improvement through process innovation.
Drawing on its experience in optimizing production processes for Japanese automaker Honda using image recognition technology, CMC aims to assist automotive companies in Korea as well.
He expressed his ambition, stating, “There are many Korean companies that have ventured into the global market.” He added, “We aspire to make Korean partners and Korean companies’ global clients.”
