S Korea’s Samsung SDS to buy 25% stake in Vietnamese IT firm CMC

A man walks at the Samsung Electronics' headquarters in Seoul January 7, 2015. REUTERS/Kim Hong-Ji

South Korea’s Samsung SDS, a system integration arm of Samsung Group, announced that it has signed a strategic partnership agreement with one of Vietnam’s leading  IT services companies, CMC Corporation, to collaborate in the smart factory and cyber security sectors.

It is understood that Samsung SDS pledged to buy 25 percent stake in CMC, to expand its business into the global IT services market.

This investment follows the cooperation agreement in June 2018 for deploying joint business in smart factory and cyber security sectors.

Under the agreement, Samsung SDS plans to work together with CMC’s engineers to enhance its global business competitiveness and actively participate in the global market including Southeast Asia.

With around 3,000 employees, CMC is an IT services company in Vietnam and its main business is system integration (SI), software development, cloud and IT infrastructure management.

The Hanoi-based IT corporation expects this investment to take it one step closer to its goal of achieving $1 billion in sales by 2023.

“We have secured a strategic partner for business in Vietnam and Southeast Asia,” Samsung SDS CEO Hong Won-pyo said, adding the partnership will support global clients’ digital transformation.

“CMC is now partnering with Samsung SDS, following AT&T, Oracle, SAP and Microsoft,” CMC Chairman and General Director Nguyen Trung Chinh said in a statement. “The strategic ties will hugely contribute to advancing the digital economy globally.”

Founded in 1993, CMC engages in system integration, software service, telecommunication-Internet, and ICT products production and distribution in Vietnam and internationally.

Currently, CMC concentrates all resources into 3 main business divisions: Technology & Solution, Global Business, and Telecommunications. CMC’s goal is to become a global corporation in providing digital transformation services.