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Uncharted Territory

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Ebola-VientianeIn 1976 Ebola virus (EBOV or EVD) was discovered in a village in Central Africa near a river from which the virus takes its name. Prior to this year, EBOV had only been present in Africa—but that all changed as infected people in Africa headed west and brought the virus with them. Today, Ebola has reached the developed world and cases continue to grow exponentially in West Africa. According to the WHO, “the average EVD case fatality rate is around 50%.”

As of October 17, there have been 9216 confirmed cases and 4555 deaths according to the WHO and roughly every 21 days the resource requirements necessary to defeat Ebola double. Currently, the organization leading the fight against EBOV, Medicins San Frontieres (MSF), has reached their capacity to provide care for patients in West Africa. On the other side of the Atlantic there are about 1,000 people under some level of supervision or quarantine in the US.

Prime Minister Cameron has called Ebola, the “biggest health threat to our world in a generation.” Global awareness has been raised—but it still hasn’t translated into much action.The UN trust fund specifically for battling Ebola has only received $100,000 out of $20 million pledged. Yes, the US is prepared to dispatch up to 3,000 soldiers to affected areas in West Africa and Cuba has sent more than 450 medical personnel to help with the Ebola outbreak there but more resources need to be diverted to West Africa to get a leg up on the disease.

The current efforts haven’t been particularly reassuring consider that the UN has admitted that it has “botched” the initial response to the Ebola threat. And once the virus arrived in the US, the way that Texas Health Presbyterian Hospital handled Thomas Duncan’s case can be summed up in a series of missteps. There is simply too much misinformation, hubris, and dogma present in how the danger of Ebola has been communicated to the public.

Unclear Events

Let’s take a look at how information regarding the American EBOV cases came out recently:

Story #1: ABC News – 10/15 – 10:30AM

“The level of risk to people around her would be extremely low,” said Dr. Tom Frieden, director of the Centers for Disease Control and Prevention.

Frieden says the health care worker traveled to Ohio before she knew that the first nurse had been diagnosed. She was undergoing self-monitoring at the time.

The unidentified nurse flew to Cleveland on Friday, the same day a colleague, nurse Nina Pham, was hospitalized. Pham’s diagnosis with Ebola was disclosed on Sunday.

The airplane’s crew said she had no symptoms of Ebola during her return flight on Monday. But Tuesday morning she developed a fever and on Tuesday night tested positive for Ebola.

Story #2: NBC – 10/15 – 4:30PM

Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention, told reporters that the nurse had a temperature of 99.5 degrees before she got on the plane on Monday.

Because of that reading, and because she had treated Thomas Eric Duncan, the first Ebola patient diagnosed in the United States, the nurse should not have been on the plane, he said.

“She should not have traveled on a commercial airline,” Frieden said.

Story #3: WFAA ABC – 10/15 – 9:19PM

It was later confirmed that the CDC gave Vinson permission to get on the plane because she was showing no other symptoms of the virus, and her temperature didn’t reach the threshold of 100.4 degrees.

“She wasn’t bleeding or vomiting,” Frieden said. “The level of risk around her would be extremely low, but because of the extra margin of safety, we will be contacting [all those who were on the flight].”

Story #4: The Blaze – 10/16 – 12:24AM

In a letter to employees, Frontier Airlines CEO Dave Siegel said he “was notified by the CDC that the passenger may have been symptomatic earlier than initially suspected; including the possibility of possessing symptoms while onboard the flight,”

The CDC had previously said that the nurse “exhibited no signs or symptoms of illness” while on the flight, but said they still wanted individuals who were on the flight to contact them. In a statement, Frontier had echoed that and said their crew didn’t observe any signs of illness from the patient.

Story #5: Reuters – 10/16 – 6:07PM

An Ebola-infected Texas nurse who traveled to Ohio over the weekend to plan for her wedding may have been ill as early as Friday[10/10], a spokesman for the U.S. Centers for Disease Control and Prevention said on Thursday.

Dr. Christopher Braden told a news conference in Ohio that the CDC may include people who were on a flight Amber Joy Vinson took to Cleveland from Dallas on Friday in its investigation of possible contacts.

Vinson went to a bridal shop in Akron on Saturday but otherwise spent the weekend mainly with family before taking a return flight to Dallas on Monday, the day before she was diagnosed with Ebola, according to county health official

Dr. Marguerite Erme, medical director for Summit County, told the news conference that people who visited Coming Attractions Bridal & Formal Inc in Akron from noon to 3:30 p.m. on Saturday should contact health officials.

Eight people who had confirmed contact with Vinson during her Ohio visit in Summit and Cuyahoga counties are in voluntary quarantine and have not shown symptoms of the virus, county health officials said.

Uncertain Direction Ahead

Of course, more people have died than has been officially reported due to the challenges of obtaining accurate data in the field and the scale of the outbreak. For example, there is an overwhelming flow of patients to newly established care centers as soon as they open and the untold economic effects will surely linger long after the outbreak reaches equilibrium. Co-discoverer of EBOV Peter Piot: “The three countries that are affected are being totally destabilized, not only in terms of people who are killed by Ebola — their families, the orphans that now are coming up because the parents died — but the economy has come to a standstill[.]”

In Vietnam, the extent of Ebola on the radar here was when a few rumors were spread by locals in August an attempt to raise awareness. Upon arrival at Wattay International Airport, debarking passengers are presented with an Ebola information card as they pass through a manned kiosk. While the Noi Bai (Hanoi) airport also has a kiosk, it was not manned when arriving late last month. It’s worth noting that airport officials have tightened restrictions since then.

However, all is not bleak: Liberian-American Patrick Sawyer didn’t infect anyone else on his flight to Nigeria despite having clear visible signs of the disease. Also, Thomas Duncan’s family seem to have not been infected–although the real “all-clear” threshold is 42 days instead of 21. Furthermore, the UN recently officially declared the outbreak in Senegal over and Nigeria has managed to stop the spread of Ebola beyond the few outliers that broke protocol. These are real successes and lucky breaks.

The upcoming Flu season will be a true test of healthcare systems in the US and other nations as the fear of Ebola continues to rise and more infected people span out of currently affected areas. Travel plans, daily habits, and business activities will all be altered as people attempt to minimize exposure to anyone who might be infected. Let’s hope that the mishandling of the initial cases will serve as a wake up call to governments, health organizations, and people so that a more proactive approach to combat Ebola can take shape.

Additional Resources:

An up-to-date timeline of how the Ebola virus has spread around the world.

A recent Johns Hopkins Symposium discussing what is known and unknown about Ebola.

 

Presenting a vision for startup exchange between Vietnam and Israel.

Startup Israel–2014 Competition

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On October 6, 2014, Hub.IT hosted an information session about Startup Israel–2014 Competition, an initiative organized by the Embassy of Israel in Vietnam in collaboration with Ministry of Science and Technology and Business Studies and Assistance Center (BSA). The information session was an opportunity for startup teams to ask Ambassador H.E Ms. Meirav Eilon Shahar questions about the competition as well as to learn more details about the application requirements.

During the event, Ambassador H.E Ms. Meirav Eilon Shahar (who has been Ambassador to Vietnam for about two years) explained that the competition launched about a month ago and it’s the first program of its kind that the Israeli Embassy in Hanoi is promoting. According to Hub.IT, approximately 30 startups were represented in the audience. The competition’s deadline was recently extended to accommodate an influx of new candidates.

The competition specifically seeks Vietnamese seed stage companies. The interesting feature of this competition is that the startups get to choose what to send to the review panel—so they need to determine the best way to present their startup’s idea, team, product, competitive advantage, etc.

The winners will be announced in mid-November and they will travel to Israel in December to take part is what has been termed a “study tour.” The exact details are unknown but suffice to say the Vietnamese entrepreneurs will meet similar startups, visit with incubators, take in lessons learned and connect with businesses in Israel, which already has a global outlook for its startup community.

Originally, the plan was to send startup founders for a few months to work with startup companies in Israel but that was deemed unrealistic due to the time commitment required. So, the project had to be adapted to the Vietnamese reality of being busy with managing a startup. Now, one representative from each team from each sector will go to Israel for primarily networking, learning from adaptation, and knowledge exchange. Ultimately, the organizational partners want to see the results of this first “class.” Maybe the results will be too limited so the project can be tweaked in the future or additional resources (except financial) can be added, such as tutoring.

The hope for the project is that the Vietnamese founders have the study tour to learn about the ecosystem and to make connections with Israeli founders. One of the big lessons learned is that startups involve failure—but despite failing one should try to improve for the next time.

According to a handout that was distributed to the participants:

“The competition brings together Vietnamese startups throughout the country to compete for the opportunity to take part in an intense startup study in Israel.

Only four representatives from four winning teams selected from the shortlist of 8 teams will go to Israel for the startup study tour in December 2014.

In order to eligible to apply for the competition, applicants need to meet the following criteria:

Age of submitting founder: 20-40

Sectors: Web/Mobile/Agriculture/Life Science

Stage of Startup: Seed Stage

Participants are responsible for reserving their intellectual property rights to the submitted products.

At least one member of the founding team of the startup should be fluent in English.”

Israeli Vietnamese Connection

The purpose of this project is to share experience with Vietnamese entrepreneurs and to expose Vietnamese startups to the Israeli startup scene. The startup scene in Israel is privately-led by businesses—although at a time it was largely government directed. The Israeli market is small; its population is approximately 8 million so everything has to be exported globally; this outward focus is true for all Israeli businesses. So in a sense, Israeli startups need to have a global view even from the onset whereas American startups can focus on the available 300+ million population. Indeed, even the VC presence is difficult in Israel but it was harder before; Israel in the 1980s was very different than today’s Israel—it improved over time, developed competition, and leveraged a strong teamwork ethic to foster innovation.

Israel is currently experiencing a debate over whether exit events by local startups and the resulting outflow of human capital is taking away innovation. Is it better to keep innovation in Israel at the expense of a potential exit? Startups in Israel simply go to US and maybe Japan. However, traditional entrepreneurs come to Vietnam as part of delegations and invest as small businesses.

Ambassador H.E Ms. Meirav Eilon Shahar revealed that the Minister of the Ministry of Science and Technology was in Israel last week for five days. During this time, the first joint committee was formed and Minister Nguyen Quan met with Israel’s chief scientist to learn more about the Israeli startup sector and the unique ecosystem in Israel. As a result, Israel and Vietnam signed a Memorandum of Understanding (MOU) to increase collaboration between the two nations in the fields of science and technology. In Vietnam, the Israeli Embassy in Hanoi is concentrating in private sector because government support is currently limited for startups.

A Winning Formula

Flexible criteria was purposely selected to be as inclusive as possible in order to spur creativity for the Vietnamese entrepreneurs who might connect with Israeli startup. What is important for startups to remember is to have the right product/market fit. It may be that the most important life experience is to go to another environment than one’s home country—in this instance for Vietnamese entrepreneurs to go abroad. Bobby Liu, founder of Hub.IT, explained, “I realized that we are only a few years behind Singapore, which started its accelerator in 2012. Being successful requires a lot of confidence. We have no choice but to explore since Vietnam may not have a suitable environment. Go somewhere else to explore: that’s what entrepreneurs do.”

Failure is a part of startups; entrepreneurs need to see and learn how to improve for the next time. It’s a long term haul—not a short-term win. One industry that Israel has focused on to grow and “own” is Homeland Security; in fact, Israel will be hosting the Israel Homeland Security convention next month which features information on cyber security, emergency preparedness, and law enforcement.

Considering there is no signup form, the challenge for startups is to submit an application that best portrays the product to the judging panel. So, 10 page proposals are out and the idea should be optimally refined to a single sentence of explanation (with supporting information). Hopefully, better judgment prevails here.

Interested parties can apply as outlined below (via handout):

An application in both English and Vietnamese includes general information about the startup and thorough business plans in PDF.

A video clip in English, no more than 2-3 minutes long, explaining why their company should be picked to go to Israel.

After screening of applications and video clips, 8 finalists will have interviews (in English) with a board of judges including representatives from the Embassy, the Ministry, and BSA. The final interview stage consists of presentation and Q&A session with judges.

Applications needs to be sent by email only to the following address: political@hanoi.mfa.gov.il

For more information, please contact Ms. Phan Thuy Trang; Mobile: 0914 551 528; Email: political@hanoi.mfa.gov.il or visit the Embassy Homepage or the Embassy’s Facebook page.

The deadline for submission is October 15, 2014 and only shortlisted candidates will be contacted.

Credit: Lina Skoglund

Ongoing Events in Hong Kong

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The images coming out of Hong Kong over the past week have been increasingly troubling as tensions rise between protesters and authorities—and the political, economic, and social impacts remain unclear as the Occupy Central movement builds. Ultimately, it boils down to competing narratives: one where the protestors are “rabble rousers” who are perverting the spirit of the Basic Law in Hong Kong. Of course, the protesters and their supporters see the situation as fighting for their ability to freely choose an elected leader without interference from Beijing—at least on the face of the movement—but there is, no doubt, underlying economic pressures that have influenced the course of events to lead to a potentially transformative event like Occupy Central.

At the forefront of this movement to retain autonomy from China (and to express their grievances) is the youth of Hong Kong. Each day, more people are joining the ranks of fresh faces on the ground, thereby disrupting daily school, work, and livelihoods. On one hand, stability is important—especially in terms of Foreign Direct Investment (FDI)—and let’s face it: Hong Kong relies on financial operations and markets flowing smoothly in order to prosper. At the same time, a segment of people in Hong Kong wish to express themselves—but at what cost?

On The Ground in Hong Kong

Below is a first-hand account of what things are like in and around the tense atmosphere. Please note that GKTA Group Limited does not endorse, condone, or support the following views unless otherwise noted.

“This week is usually really important for Hong Kong shopkeepers, because people from continental China are on holidays for national day and go to Hong Kong for shopping–those sales represent an important part of the turnover in the season.

Actually, [Friday], I was in Causeway Bay, which is a shopping quarter – the place where the riots took place – there were only tourists from continental China inside shops. But students and demonstrators from [the] Occupy [Central movement] were still blocking the streets.

I was in a shop – which was unexpectedly calm for a sales period – and we got blocked inside because of the arrival of those men wearing masks and the beginning of riots between “pro” and “anti[.]” Here, it is said that these “anti”-guys come from the Triads funded by the government.

In two minutes, the ambiance changed dramatically from a friendly atmosphere to a strained and electric one. But tourists didn’t seem to be frightened, and two blocks further, families were quietly going shopping.

However, some people seem really exhausted here, especially shopkeepers and people supporting Beijing, and even in my subway station far from the center of the city, people are fighting. I cannot speak a word of Cantonese so it is quite hard for me to understand discussions.

Besides, we need to take into account inequalities in Hong Kong: 50.000 people are literally living in cages and 50.000 people are living in subdivided flats with the same indecent comfort.

And this “great” movement for democracy comes from students from rich and well-off classes but is not followed by the part of population with tough living conditions whose first priority is not democracy.

Concerning the impact on the economy, usually, people go out of work and then join demonstrations and sittings. However, the whole central quarter is blocked and lot of people work at home. The major part of banks and companies are paralyzed because of barricades and closed subway stations in the business district, but for the moment, it is just impacting shopkeepers.

Plus, as everything is free during demonstrations (drinks, food, umbrellas, masks), shops around don’t really take advantage of it. I don’t know who pay[s] for all that stuff; [the] gossip [is] that it is funded by billionaires supporting the Occupy movement, but these are just rumors.”

The Global and Local Response

Nationalism for many countries in this region involves simply showing that one’s side is more vocal, animated, and devoted to its cause—which can result in ugly protests and political fervor. The response to the Hong Kong protests from the world (largely) has been to support the growing student and citizen movement in Hong Kong. Across Facebook, users in Vietnam and other countries are sharing links of the media coverage of the events as they unfold. Perhaps the Vietnamese are taking a deeper interest in China (as opposed to other Southeast Asian nations) because of the recent events in the South China Sea; the Vietnamese and Chinese histories have been intertwined for approximately 2,000 years.

Every nation acts in its own self-interest; the Chinese have shown that they are long-term and strategic thinkers who are adept at influencing external factors to achieve their aims. There are two clear ways the situation can play out: either the protestors become tired and go home, or Beijing gives in to the protestor’s demands. If Beijing gives in then it would set a precedent—a bad one from the government’s perspective, and a good one for supporters of Occupy Central.

If we look at the recent controversy over HD-981, the $1 billion oil rig owned and operated by China National Offshore Oil Corporation (CNOOC), the rig was moved out of the way when an incoming typhoon threatened the rig—not because Beijing had realized it had caused a major disturbance with its southern neighbor. Beijing was most likely testing uncharted territory by moving the rig into the Exclusive Economic Zone (EEZ), thereby surprising Hanoi. And it was Vietnam, not China that felt the economic sting due to riots and protests that damaged hundreds of factories back in May.

From an outsider’s perspective, it looks like China is the common denominator for disputes in the region, whether it’s in the South China Sea, or Hong Kong, or in the East China Sea. However, from the Chinese perspective, they believe they had every right to move its HD-981 oil rig within the nine-dash line—and of course, the Chinese position on Hong Kong is clear after reading the recently published white paper and considering the latest statement via the People’s Daily newspaper. It’s a tough situation all around for those involved as they strive to realize their aims and guide the episode’s outcome in their favor.

What about future issues in the region—how might they look like? There is a distinct possibility that the next time China and another country or Special Administrative Region (SAR) differ on principles, it will most likely be the dissenting party that pays the price—not China. However this situation in Hong Kong pans out, the bottom line is that some future investments may flow into Shanghai and Singapore (since they look more stable than Hong Kong at this point) as a result of this episode of social unrest. Beijing has a distinct advantage going forward: time–in the sense that as events continue to develop, the Occupy Central protesters and their opinions may become more fragmented as Beijing remains steadfast in its stance.

Thanks to Lina Skoglund for sharing her views and photos, and to Louis Boulay for contributing to this post.

On the road north of Vientiane.

Vientiane, Lao PDR

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In the 1960s Vientiane had the reputation of being the wildest city in Asia. Today, Laos–with Vientiane as its “sleepy” capital–is known as one of the most underdeveloped countries in the world. Usually, people know one of two facts about Laos: that it is land-locked or that it is the most heavily-bombed country, per-capita, in the world as a result of being a battleground for 20th century ideology. However, these quick facts don’t do the beautiful country and its warm and friendly people justice–and this basic knowledge barely scratches the surface of the complex history of Southeast Asia.

Laos shares a linked history with Vietnam but this relationship was further strengthened during French colonial times, and continued through the Second Indochina War. Even today, there are strong and deep ties between the two countries; for example, earlier this year Vietnam funded an upgrade to the Kaysone Phomvihane museum in Vientiane.

Similar to Vietnam, Lao PDR began to open its economy to the world in 1986 but maintained strict controls on its political apparatus. Despite the current political and economical situation, there is foreign investment here; a significant portion of new construction projects are implemented by either Vietnamese or Chinese companies depending on the size of the project. For existing construction, the electrical wiring indoors, while exposed, is run neatly, and the wiring in the streets are bundled together in an orderly fashion. In homes, switches and outlets are grouped together in junction boxes that are dispersed at chest level in various rooms. Anecdotally, the power might go out for a few hours once a month in the capital.

The most visible element of consumption by the upper class, luxury vehicles, are somewhat common throughout the capital and there are some nicely designed houses in a westernized sort of style dotted throughout Vientiane. The Toyota Hilux is the unofficial vehicle of Laos as it is ubiquitous throughout the capital. Furthermore, a significant number of vehicles are modified from their stock origins in some way–be it hood scoops, snake eyes, or chrome accents–so there is a growing tuner culture in Vientiane.

Unfortunately, rush hour traffic fills up portions of the city quickly and traffic jams can occur for no apparent reason, e.g., lack of a traffic collision or police checkpoint. When there isn’t heavy traffic, whirring diesel engines and turbo-chargers spooling up in SUVs are common sounds (and the drivers love to careen down roads meant to be driven on no higher than 30 or 40 KPH). Mercedes-Benz, Porsche, and other luxury vehicle brands have dealer presences in the capital; considering Lao PDR’s economic rankings, it can be surprising to see the Mercedes SLS in a showroom—and even more surprising to see it on the roads of Vientiane.

Vientiane Through Foreign and Local Eyes

Chiang Mai, Thailand and Vientiane, Lao PDR are two cities that are similar despite being in different countries; in terms of population, consumer preferences, and lifestyles they are very much aligned. Additionally, there is a strong Thai influence in regards to fashion, youth culture, news, and entertainment in Laos. The Lao PDR capital is literally across the river from northern Thailand, after all.

Even though many Thailand-based expats (farong in Thai) travel to Vientiane for visa-runs, it’s surprising that there isn’t a larger presence of foreign freelancers in Vientiane and in Laos in general. From a visa perspective, it can seem quite attractive for remote workers and there exists the support for foreign freelancers in Vientiane in the form of Toh Lao co-working space. For foreign full-time professionals, the options range from EMC to Sciaroni and Associates to DFDL (the last organization having been founded in Lao PDR). Of course, there are also some foreign banks such as VietinBank and Sacombank (Vietnamese banks) that have branches in Vientiane and there are also many foreign restaurants in the capital to represent small expat-operated businesses—Istanbul Restaurant, Soul Kitchen, and Jamil Zahid to name a few.

Many Non-Governmental Organizations (NGOs) have a large presence in Vientiane as well so there are expat support staff who regularly work with their local counterparts. In general, locals and foreigners who might meet and develop a romantic interest in each other can’t live together and sexual relations between them are forbidden–but marriage is always an option for those who find their soul mates in Lao PDR. A good way to meet people in the Vientiane business community is via weekly events such as the meetups put on by AmChamLao. In addition to the robust expat house party scene, there are the famous get-togethers at CCC bar in downtown Vientiane. Overall, Vientiane is a small place—there is a sense of a village mentality so reputation is important since “everyone knows everyone” in both the local and expat communities.

Outside of Vientiane and into the Countryside

The youth of Lao PDR’s high-society (Hi-So) in Vientiane can be found at Mark2 or Marina wearing trendy and/or revealing clothes and dancing the night away to western style arena house music from Thursday through Saturday nights. “After hours” almost always includes karaoke in some interesting but comfortable places for all sexes (since the culture is inclusive). Yet, these experiences are so far removed from the daily lives of the average Laotian.

Outside of Vientiane things quickly become poor besides a few cities like Luang Prabang, Pakse, and Suvannahkhet. Think unpaved roads, wooden huts, shoeless children, etc. However, throughout Lao PDR there exists a deeply respectful and hospitable culture with a strong beer drinking tradition; Lao people are perhaps the most laid back in Southeast Asia. The quintessential Lao experience is singing karaoke on a nearby river or body of water while drinking Beerlao. Social gatherings are important and women and men are not always separated at these events where people are sometimes sitting on the floor and are sharing food with one another. One unique aspect of Lao culture is the use of a single glass to drink beer in addition to a personal glass, which is passed around and shared among all the guests at an special event.

Other activities that Laotians enjoy include fishing, football (there already is a healthy representation of the up-to-date Germany World Cup jerseys), and petanque. Petanque in Laos is different than petanque in France (where it originated) and government ministries usually have a petanque court on site. Half the government ministries have their signs in French, and the other half in English (besides Lao)–the same goes for the road names in Vientiane.

The three most visible brands throughout Laos are Beeline, a telecommunications company; Beerlao, a product of Lao Brewing Company—a joint-venture between Carlsberg and Lao PDR; and Johnnie Walker, which is also popular in Thailand. Beerlao is on every restaurant sign as well as restaurant equipment such as standees and cash register desks—the result is a very large market share of beer consumption in Lao PDR.

A Future Focus

Officially, the Lao PDR government actively seeks investments in agriculture, hydropower, manufacturing, and tourism, according to its investment brochure. Organically, Laos experienced its first Startup Weekend ever in Vientiane in May of this year. Last week, Nana Souannavong, president of Snap International, and co-founder of Toh Lao co-working space, was gracious enough to explain to us the state of the startup ecosystem in Vientiane.

As Nana sees it, the biggest challenge ahead of the Vientiane startup community is getting people to understand what a startup is and getting people to be more entrepreneurial because they like the stability of public sector jobs. She shared with us that a generally strong curiosity among participants and a higher proportion of female entrepreneurs are the biggest strengths of the startup community in Vientiane. Those (aspiring) entrepreneurs who are passionate are the hardcore ones who stick through the multi-day events such as Startup Weekend–and they will be the ones to get the most out of the events. It gave her hope to see so many people show up to the first Startup Weekend because if no one showed up then she knew that the community wouldn’t be ready for another five years–the fact that people showed up was a huge victory for the Vientiane startup community. Nana also revealed that the winners of the May event are still working on the concept but as a side project since the team members already had a full-time focus before winning at the Startup Weekend.

While the official Lao PDR Small and Medium Enterprises (SME) office also supports startups, there will be many challenges on the way to creating and building a suitable environment for venture capital (VC) firms and angel investors to operate in—something does not exist although there are other forms of external investments. However, the legal framework does exist for foreign investors and founders in regards to equity but only outside of the retail industry. Nana’s advice to future entrepreneurs is to “think through what you are trying to do to understand the consequences.” Along those lines, her favorite quote is “life is an investment.” She should know since her company provides financial advice in money markets for local and foreign companies.

Startup Vientiane

At the Startup Weekend, there was a mix of tech and non-tech products and services being pitched but going forward there are no obvious areas for startups to form around. Y Combinator, perhaps the most prestigious startup accelerator, has a Request for Startups (RFS) feature on its website. While the list below is not a request for startups in the strictest sense, it does provide an external view on the opportunities in Vientiane and beyond after speaking to locals and longterm residents.

Opportunities for Startups:

-Targeting tourism (perhaps first via Triip.me and then expanding on original concepts specifically for Lao PDR)

-Creating accounting controls (perhaps in the form of mobile applications) for local and/or foreign SME in Lao PDR

-Products and/or services for the many NGOs in Lao PDR, e.g., tools to train local staff or tapping into external crowd funding

-Leveraging the growing consumer communities (for example, the car tuner culture) and collecting data points on them

-Helping expats to adjust to Laos by finding housing, goods, or services more easily (a better English->Lao dictionary, for example)

Perhaps when people think of Lao PDR in the future, a third fact might enter their consciousness: a growing startup hub centered around Vientiane. The people in Lao PDR have many things to offer the world–foremost among them is their hospitality and resilient attitude–this much is apparent upon crossing the border into Lao PDR. Another Startup Weekend is scheduled for later this year at Toh Lao co-working space–hopefully, the organizers will be able to build off the success of the last event and the participants will take even bigger risks to share their ideas with the community. It will be a long road indeed, but with community leaders like Nana, anything is possible.

 

Why waste time trying to figure out which is the correct wire when you can just run a new one?

Vietnamese Work Culture

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If you are coming to work in Vietnam from the west then it might take some time to get used to the Vietnamese way of doing things, which can be effective in its own way (it works here after all) but can also be off-putting to some people and bewildering to others. The work culture here is a mixture of indirect communication, posturing, a heavy top-down management style, and (for some workers) a “good enough” mentality when it comes to performance. Needless to say, it can be challenging to communicate your vision for how something should be done based on a client’s or your requirements.

Vietnamese workers have different professional needs than workers in the west—both in the office and on site so you might have to employ different communication techniques and different ways to motivate them in order leverage their strengths once you begin to understand how to effectively communicate with local workers. If an option, starting a new worker on a smaller project and then gradually expanding his/her scope is a good way to build his/her confidence while minimizing organizational risk. Whatever it is that you expect of a worker here, you should be able to simplify the process as much as possible or should have even attempted the process yourself beforehand to know what the pitfalls are for workers. Perceptions of good design, aesthetics, and fashion are very different here from the west—explore these arts with an open mind but be aware of the limitations in terms of technology, skill level, and approved content.

Vietnamese are generally not geared toward being creative (in part, due to the educational system of learning and for fear of losing face) when it comes to work tasks so they can experience some trouble coming up with new ways to improve processes or in creative fields such as design. Being creative may simply be too risky for them since it requires thinking about concepts, products, services, etc. in a way that hasn’t been thought of before—and it lessens the chance of success since no one has done it that new way before. Similarly, for Vietnamese workers to imagine something being done a new way via your explanation might be hard for them. Therefore, Vietnamese workers seem to fall back on “tried-and-true” ways to solve problems—which doesn’t always scale well and may be counterproductive in some cases if a step in the process has to be redone due to different (international) requirements.

However, Vietnamese are generally good at copying things, i.e., if you show them exactly how you want something done in terms of a process and the finished result then that will increase the chances of your satisfaction for the product or task end result. This method can be helpful in batch manufacturing or for installations in construction. Vietnamese workers are also able to skillfully digitally recreate and combine graphic art as a base for future modification for whatever project you might be working on but they will require guidance and input from you. (Note: If you are hiring locals then they might leave to form their own company once you train them. There’s no way you can compete with them on wages because they will have a much lower cost of living than you do.)

Coming from the west, you might notice a lot of inefficiencies in your first week or month or year in your local organization but it would be wise to refrain from actively trying to change things until you’ve proven yourself to your local colleagues and built up some goodwill. A possible first step in the right direction might be to push upper management for the dismissal of underperforming teammates especially if it’s necessary to shape a better organizational culture/fit ( however, it can be hard to fire workers due to labor laws and/or relationships).

Managing Vietnamese Workers

If you are a manager in a Vietnamese company, then try to get to know your direct reporting team as much as possible. Go to café outings as a team (the male coworkers will probably be willing to go for beers but the female coworkers generally won’t) and participate in other semi-professional bonding experiences. As long as your team performs to an acceptable level (to those you report to), and your client or manager is happy then there really isn’t a need to change much except for the professional growth of your team.

At first, it might be hard to find out the strengths and weaknesses of your team because Vietnamese are generally shy and don’t naturally “sell” themselves. One of the biggest problems here is with lack of confidence: both with confidence in their abilities to succeed and in their confidence to ask clarifying questions without looking stupid (so assumptions are made and things are shoved forward at times). Don’t be surprised if you get lame responses for why something is late or wasn’t done as asked. Patience and polite firmness (“I’m sorry but I can’t allow or do that.”) are the only ways to be effective in those situations. Your top talent on the team might be the most reserved and you’ll have loudmouths who will talk and obfuscate their way to the top if you allow them to. Figuring out who is the real deal and who is just puffing his/her chest will take some time to figure out. Don’t underestimate or write off someone here based on a first impression; once you get to know them then you will be able to discern if they are competent or if they are a liability. It could be that with the right training, a good worker can become a great one.

Great workers can be hard to find because there is generally not much appreciation for the consequences of doing something one particular way versus another. The path taken by most workers here is usually the shortest and the one with the least resistance, especially in blue collar fields. This short-term focus can be incredibly frustrating at first because it requires addressing basic elements that you can take for granted elsewhere. For example, trade workers might show up to repair something in your home and then proceed to use your kitchen knives as their tools or your dish cloths as their rags to wipe down things (if they even clean up afterwards). They might even show up hungover or drunk as well so it could make for some interesting home repair experiences. The point here is that workers require more supervision than in the west (at least for the first time going through a process) or else you will find them using your butcher knife as a shovel, your steak knife to scrape paint off steps, and your paring knife to apply some chemical goo somewhere (yes those are all real examples but skill levels vary across local organizations).

Training Vietnamese Workers

That being stated, the best way to train workers here is through positive reinforcement, i.e., focusing on the things that are done right and minimizing the focus on negative aspects unless they are mission critical, e.g., “Do it more like the way that you previously did.” Any critical feedback should be done in private and praise should be given in public. Be cognizant of age differences between you and your counterpart because if you are younger than him/her then it could result in some awkward disagreements, especially if you feel that s/he is wrong (elders are usually given authority) and vice versa. The best way to move forward in situations like those is to focus on consistent future performance and try to get everyone on board in a harmonious way. Eventually, once you bond with your teammates, you will find that they will smile more, laugh more, and may even touch your arms or shoulders more when communicating with you. Some workers may be more affectionate than others but it’s just a way of showing you are one of them especially if there are language barriers. Regardless, one thing is guaranteed: they will all nap so it might be wise to change training schedules to meet those napping needs. Napping is part of daily life here during lunchtime; the workers will either fall asleep at their desks or find a beanbag or other comfortable surface (or will even end up on the floor). As they say, “don’t knock it until you try it.”

Future Vietnamese Workforce Potential

So while the Vietnamese workforce definitely has room to improve and grow, the trend in recent years is positive because the youth here are simply great. They are bright, optimistic for the future, talented, eager to learn, and focused on improving their socio-economic conditions. It might be this current generation that can unlock the full potential of Vietnam’s human capital resources. Those who study abroad are bringing back a different mindset for problem solving to share with the local organizations here and are actively involved in helping other students who haven’t had similar opportunities. The youth are interested in working with and learning new techniques, best practices, and new skills from foreigners and are, more importantly, generally honest about the challenges ahead for today’s Vietnam.

While it won’t be easy working with locals, and projects might take longer than you originally thought, and you might have to do more than your “fair share” of responsibilities to get something done the right way… with the right team, the right attitude, and the right training anything is possible in Vietnam. And soon enough with new technologies, new skills, and new attitudes that are being adopted on a daily basis, everything will be possible in Vietnam.

Time In Vietnam

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A common sight in front of many businesses here.

A common sight in front of many businesses here.

Men playing a game in front of a temple.

Men playing a game in front of a temple.

Time on display.

Time on display.

A barge ran aground on the Mekong River.

A barge ran aground on the Mekong River.

Keep going forward and you will eventually get there or get run over.

Keep going forward and you will eventually get there or get run over.

One of the biggest differences between this part of the world and the west is how long things take to get done. If something takes x amount of time over there then expect it to take 3, 4, or 5x as long here—unless you have a well-connected local partner to fast track whatever it is you are doing in terms of paperwork or approvals. That’s for Saigon; it’s an even slower pace in Hanoi.

A simple task such as ordering at a restaurant might go a little something like this:

Person A orders.

Wait staff repeats Person A’s order.

Person A confirms.

Person B orders.

Wait staff repeats Person B’s order.

Person B confirms.

Wait staff repeats the entire table’s order.

Person A and Person B confirm.

That’s assuming the wait staff understood the orders right the first time. Getting the correct order on the table is a different matter entirely. 🙂

Even the fast food here isn’t really “fast” food (in the traditional sense) since Vietnamese families often fill various franchises around dinnertime, spending more time than required to just pop “in-and-out” for a meal. It’s a bit of a “badge of honor” to be seen in a western establishment for the average Vietnamese family because it shows they can afford eating there. Combined with the coffee culture here, people spend hours inside F&B shops chatting, talking, operating on social media, and generally being seen.

So, time has a different pace and value here than back west. If you take things here at face value then you will run the risk of wasting a lot of your time.

When working with locals, a common trend is overpromising and under delivering—especially when it comes to deadlines. You should not believe that something is done to the required specifications until you have seen it with your own eyes and have had time to review/test it.

Missing five deadlines in a three month period is a very real possibility here (a real example) and after a certain point the old adage comes to mind, “Fool me once, shame on you; fool me twice, shame on me.”

Not everyone, but many locals here are focused on short term results which is evidenced by driving norms, etiquette (try stepping off a lift and you will see), and not doing things the “right way” the first time because it would simply take too long. Problems in a process are usually due to a lack of planning until it’s almost too late and then it’s rush, rush, rush!

Needless to say, communicating effectively can be very difficult here. You can explain something via phone, text, email, in person, whatever and it still might not be done the way you expected or wanted. Sometimes, people might tell you “yes” just to get rid of you or to save face or because they don’t understand what you are asking and are trying to be polite. Try to ask someone for directions and you’ll quickly understand how pointless it can be sometimes.

Short of learning the local language, speaking slowly, and rephrasing the major points go a long way toward reducing miscommunication. Hiring an interpreter is also an option but not the best long term strategy. The longer you stay in Vietnam the more seemingly strange things will start to make sense to you—but it’s a steep learning curve unless you take the time to research Vietnamese culture and history (and that includes learning the language). Asking local friends for clarification will help you understand Vietnam as well but be careful how you phrase your inquiry less you offend them.

To add to the language barrier frustration, you might have trouble figuring out what is true and what is false since everyone’s favorite English word seems to be “yes.” For example, if you ask a local colleague to sign off on some items that s/he was to have completed already the response you get might be affirmative but the task might not actually be done. “Trust, but verify” should be the mantra for westerners operating here or else you will become mad with frustration and waste valuable time.

Time here is abundant for many people; for example, a typical lunchtime might be 1.5 to 2 hours with eating, recreation, and napping. The heat and humidity can negatively affect productivity but the cost of labor is inexpensive so productivity is not as much of a concern as it is in the west. Locals could underappreciate your time when it comes to meeting start times and having you wait around for them. However, you shouldn’t show up late to a meeting because you assumed your counterpart has a polychromic view of time as well—not all locals are the same. There are also many temptations and distractions from professional life so it can be easy to slip into some bad habits that might not be so available or accepted in the west. Balance between work and personal interests as well between stress and relaxation are essential to being successful in Vietnam (and everywhere but, especially in Saigon, it seems easier to jump off the deep end for some people).

We counted three welders on site.

We counted three welders on site.

Some Vietnamese Phrases That May Save or Waste Your Time

“You need to move slow if you want to move fast.”

Meaning: Don’t pester the person you need to get something done or else they will dig their heels in and operate even more slowly to spite your perceived meddling Let them work at their own pace—in the end it will be faster and less stressful. If you are answering to westerners for a project then this could be a problem for you.

“You need to spend money to make money.”

Meaning: Vietnamese are attracted to those who they believe are successful. It might be real, or it might be an image. It could also be a fatalistic approach to justify whatever crazy scheme is going on. Finding out what is really going on could take a lot of digging and time—better to move on or do some circular research via mutual trusted contacts.

“In the end it will be okay so if it’s not okay then it’s not the end.”

Meaning: Largely an excuse for deflecting criticism or remaining unfazed by concerns that are presented. It could be the case if there are other unknown actors (usually family) who will swoop in to save the project in the final hour. It doesn’t sound like a promising result if that is their best strategy, right?

“Don’t need.” (“Cannot.”)

Meaning: You haven’t convinced a local decision maker that your suggestion is useful. Try a different approach because repeating yourself will just waste everyone’s time.

For example, when the founders of an online food ordering website here went around trying to get local restaurants to “install a machine that would print out orders from the internet” they eventually pitched it as “a salesperson you don’t need to pay.”

That resonated with restaurant owners and led to the adoption of the machine and their success. If you get a “no” the first time, then ask a different way or provide a range of options that you are willing to work with.

“Not your job, not my responsibility.”

Meaning: You are working with the crème de la crème! Cut your losses and move on (thereby saving your time). If that is not an option then you had better get into “CYA” mode.

Different Approaches for Different Situations

Whatever the situation, if you don’t get the response you wanted then ask someone who has been in Vietnam longer than you have for some feedback—chances are they will have some good suggestions for you. At the very least, “talking out” your problem will allow you to simplify it as you explain it to someone else. If that doesn’t work then as they say, “experience is what you get when you don’t get the results you wanted.”

Remember, the challenges you will be faced with while working here will be a culmination of differences—differences of visions, standards, expectations, of course languages and culture, and ultimately, opinions. Just keep in mind that it’s all a learning experience and a valuable education for what challenges might again lie ahead in the future when working in Vietnam (and you will already have part of the solution for the next time!).

Prepare to move slowly (budget, timetable, travel plans, etc.) but don’t waste time here since you won’t be able to get it back. Above all, the more time you spend in Vietnam, the more efficient you will become as long as you maintain your high standards and don’t try to change the whole country. Always remain patient, calm, and professional throughout every situation—even when those around you are not because it’s one of the best ways to ensure that you won’t have a bad time in Vietnam. After all, you’ll have peace of mind knowing that you did the right thing.

E-Commerce in Vietnam

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With a population of over 90 million, there is no doubt that the middle class in Vietnam is growing; in 2012 the middle class consisted of 8 million people and consumed $46 billion[1] up from around $20 billion in 2004.[2] Today, Vietnam is the 13th most populous country in the world—and almost one million people are born here each year.[3]

The mobile phone (and smartphone) continues to rise in Vietnam. There are approximately 140 mobile cellular subscriptions for every 100 people in Vietnam.[4] Vietnam is the second-fastest growing smartphone market with approximately 13 million iOS and Android users as of 2013. 40% of those are iOS users.[5] Mobile phones will soon overtake PCs as the most common web access.[6] According to 3rd party app store Appota, “on average, mobile users consume 4.5 hours of media daily of which 35% is on mobile devices.”

In terms of social media, Vietnam is one of Facebook’s fastest growing nations. Facebook has over 70% penetration rate for internet users which equals approximately 22 million people.[7] Furthermore, Google officially entered the Vietnamese market by establishing AdWords here in early 2013.

E-commerce is growing but consumers still prefer cash on delivery (COD) payment for online orders. For the most part, consumers are simply unwilling to use their credit cards. Of the total $700 million in e-commerce sales in 2012, only 11.8 percent of online consumers used a non-cash payment method.[8] For 2013, 74% of all online consumers had used COD as a major payment method.[9]

Why? Because consumers are suspicious about the quality of the products they have ordered and want to inspect the item before paying to make sure it’s what was advertised. Even at retail stores, buying a $15 rice cooker or $10 electric kettle may result in the floor staff taking out the item from the box and plugging it in, thereby proving to the consumer that it does indeed work.

As with much of Asia, the society here on a public level revolves around the concept of “glamour” or being able to show off that one is successful (which is closely tied to “saving face,” another HUGE deal in Vietnam—that can’t be stressed enough). This theme can take shape in several forms: ostentatiously counting money when one (usually the oldest male member at the table) goes to pay the bill at a restaurant, aggressively pushing past those already queued up to show that one doesn’t need or have time to wait around, or belittling service staff in front of others. Successful Vietnamese are willing to spend big money on luxury cars as they are often twice or thrice the price of the same or comparable model in the United States. However, wealthy Vietnamese also love a good deal and some may feel entitled to not pay the same price as everyone else (looking for special price) due to their VIP status. As for the normal folks, they will have to make do with daily deals sites.

Vietnam’s Groupon (Nhom Mua) skyrocketed in recent years, reaching over $30 million in total revenue in 2011 and over two million users in 2012—but ultimately crashed. Customers and merchants are generally wary of the group buying facilitators due to a history of mismanagement of the former leader, a large number of clones, and the customers that they drive to businesses are usually one-time consumers.

Generally, Vietnam is still a largely cash-based society so due to inflation there are some large denominations ranging from 100 to 500,000 Vietnamese dong (VND), with the latter being worth about $25.

Some figures about the local market:

  • Total Advertising Spending in Vietnam is a $770+ million industry.[10]
  • Digital Advertising Spending in Vietnam is $40+ million.[11]
  • E-Commerce spending was over $300 million by 2011[12] and has the potential to be over $2.5 billion by 2015.[13] Some estimates project that e-commerce spending can top $4 billion by next year.[14]

The challenges ahead for e-commerce in Vietnam are for consumers to be more comfortable using credit cards, the negative reputation Vietnam has for fraudulent activities in payment processing, and establishing effective trust verification and logistics systems for fulfilment as volume increases. New solutions and incentives different from those in the west will have to be proposed to Vietnamese consumers in order to entice them to embrace e-commerce more efficiently and wholly. As with most things, it boils down to trust.

For more information on the state of e-commerce in Vietnam see here: http://goo.gl/XoRroO

[1] OECD

[2] McKinsey & Company

[3] The World Bank

[4] The World Bank

[5] Appota

[6] Nielsen

[7] TechInAsia

[8] VECITA

[9] VECITA

[10] IMF

[11] Appota

[12] VECITA

[13] PwC

[14] VECITA