Japan-based multinational conglomerate Sony Corporation SNE recently inked a Memorandum of Understanding (“MoU”) with Vietnam’s information technology and telecommunications company Viettel Telecom Corporation.
Per the agreement, Sony and Viettel Telecom will jointly develop and commercialize services like mobile e-money, identification, CRM and e-ticketing which will be based on a particular “NFC FeliCa contactless technology”. The agreement reflects the companies’ shared vision of launching smartcard systems in Vietnam as they believe that these futuristic tools can lend a smart edge to the modern style of living.
The smartcards will help customers accomplish multiple tasks like calling, messaging, Internet browsing, and using BankPlus services to transfer money and make payments. Sony and Viettel Telecom also plan to run a trial for the NFC FeliCa smartcard solutions at two schools in Minh City to test the feasibility of integrating e-money and identiying systems and developing other promising applications.
Sony’s state-of-the-art FeliCa technology has been extensively deployed in Japan and Hong Kong in a gamut of services ranging from transportation to e-payment. Viettel believes Sony’s expertise in the field will help in bolstering its market share by introducing innovative digital payment solutions.
Despite Sony’s string of commendable contract wins and strategic partnerships, it is grappling with issues like lackluster performance by a number of its businesses, namely mobile, sensor and devices, which could in turn impact its financial performance in the near term. This apart, intensifying rivalry in each of its business sections including television, games and smartphone services are adding to the woes of this Zacks Rank #4 (Sell) company.
A couple of better-ranked stocks in the broader sector include Marine Products Corp. MPX, Johnson Outdoors Inc. JOUT and Mattel, Inc. MAT. While Marine Products and Johnson Outdoors sport a Zacks Rank #1 (Strong Buy), Mattel carries a Zacks Rank #2 (Buy).
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