Outsourcing and strategies beyond outsourcing were the hot topics as conferees at the
International Business Forum's 18th annual Venture Capital convened in a pre-conference session Wednesday afternoon on Investing in Asia: China, India, Vietnam & Beyond.
Moderator Haemmig, a lecturer at Stanford and U.C. Berkeley who said he spends about six months a year studying and consulting in emerging markets, laid the framework for a discussion that at times seemed to stray from traditional venture investing issues.
While most deals are classified as early stage, he cited statistics that showed 23% of such deals in China are in profitable companies, and most of the others have products and revenues, with no technology risk and reduced market risk.
Winston Fu, a partner with Institutional Venture Partners, pointed out that new competition for deals in China is focusing on secondary and tertiary cities, as Shanghai and Beijing are "red hot" for experienced players.
Continuing on the later stage theme, all panelists still spoke of Asian markets largely in terms of labor arbitrage, with Peter Sognefest of joint venture specialist SEAMOC (South East Asia Manufacturing Operations Consultancy) singing the praises of Vietnam.
Touting his firm's ability "to make Vietnam look like Ohio to our clients," hes spoke of the ease with which manufacturers can quickly take advantage of changing opportunities.
Noting that wage discrepancies are widening, he also pointed out that Vietnam is the only Asian market where currency trends are in favor of U.S. companies, and cited a recent success in moving a U.S. producer of toys for McDonalds Happy Meals from manufacturing in China to Vietnam. - Clifford Carlsen
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