PETALING JAYA: K-One Technology Bhd (K-One Tech) wholly owned subsidiary G-AsiaPacific Sdn Bhd (GAP) today entered into a term sheet with VietNet Distribution Joint Stock Company to form a joint venture (JV) in Vietnam to undertake cloud computing business.
The JV will operate with the proposed name of G-AsiaPacific (Vietnam) Limited Liability Company, which will be 51% owned by GAP and the rest by VietNet. The proposed JV is in line with the K-One group’s ongoing cloud business expansion in Asean and Oceania.
The cloud market in Vietnam is one of the fastest growing in Asean, driven by its accelerating digital transformation, K-One noted. In addition, the multinational cloud partners of GAP, namely Amazon Web Services, Google and Microsoft, have big footprints in Vietnam. In this regard, the K-One group believes it should ride with these cloud giants to take its share in the fast-rising Vietnamese cloud market.
With both parties holding meaningful and about equal stakes, they will be equally incentivised to charter the growth of the JV company, with each party leveraging on its expertise. VietNet will focus in developing the business through its wide network while GAP will provide the technical support to secure the business.
“Time to market is of the essence and the proposed JV route is an effective way to quickly seize business opportunities and market share in a high growth and rapidly advancing technology business such as the cloud,” said K-One in a stock exchange filing.
K-One is anchored by two main businesses – electronic manufacturing services (EMS), which primarily focuses on healthcare and medical devices, consumer electronic gadgets, Internet of Things products and industrial equipment; and cloud computing.
The EMS business is promoted under the K-One flagship while the cloud business is spearheaded by the GAP flagship. The current sales contribution ratio for EMS:cloud is 60%:40%.
GAP is principally involved in advanced cloud technology which encompasses infrastructure as a service, platform as a service, software development, IT consultancy and other professional services such as cybersecurity in relation to cloud solutions. GAP is a market leader and is one of the pioneers in cloud in Malaysia. It works closely with Amazon Web Services, Google, Microsoft and Alibaba as its vital partners.
VietNet was established in 2011 in Ho Chi Minh City as a value-added distributor of cybersecurity solutions. It has offices in Ho Chi Minh City and Hanoi in Vietnam, Cambodia and Singapore. Keeping abreast with an evolving IT cybersecurity landscape, Vietnet has established itself as the leader in the cybersecurity industry in Vietnam. It partners with the leading cybersecurity vendors and value-add their offerings with pre- and post-sales services and professional cybersecurity advisory services to its resellers, partners and customers.
