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Vietnam Today

March 2, 2015/in Challenges, Culture, Opportunities, Workforce /by gktagroupVN

Vietnam means different things to different people—some of these perceptions change every day, every year, or every visit and some of them remain frozen in time.

Tradition. An untapped opportunity. A glorious past. Increasing competition. The Fatherland. Independence. Echoes of war. A bright future. A rising dragon. The party. People of the sea. Resilience. Freedom. Children of the mountains. Liberalization. Home. Happiness.

So, what is Vietnam today? This post attempts to encapsulate daily life in Vietnam as a snapshot of some of the most common sights, sounds, and experiences in the country today. Some items on this list are not exclusive to Vietnam (or even Asia) but they are still noticeable in daily life in a major city like Ho Chi Minh City or Hanoi.

Vietnam is the land of…

1. “Selfies”

If you go out one night in either Hanoi or Ho Chi Minh City, you’ll probably find people taking selfies or self-captured photos. There are certain requirements for where and when one should take a selfie, including being with a significant other, before eating, being with friends, and generally anywhere and everywhere in between. The ubiquity of smart phones in Vietnam allows for the endless flow of media experiences to be captured, shared, and commented on to form an constant feedback loop.

2. Cafes

The cafe is an important part of life for Vietnamese. They are used for a bunch of core activities including meetings, relaxing, literally sitting around, playing games (multiplayer and single player), and to communicate status. Some common drinks are cafe sua da (also known as cafe no da in the north), xinh to xoai, and tra da. The cafe culture here is strong, rich, and all-encompassing but still very different in parts of the country.

3. iPhones

Not just smartphones, but Apple iPhones. These devices are seemingly everywhere and can be seen used by celebrities as well as (some) shopkeepers and street vendors. One way that the number of iOS devices increase in the country is through family: as people upgrade their handsets to the latest models, they pass on their older models to family members. There are millions of iOS devices in Vietnam but the app marketplace is largely fragmented with third party app portals.

4.Honking

A sea of traffic, clouds of exhaust, and incessant honking. Many Vietnamese drivers seem to use the horn simply because it is there. Another large portion seem to use the horn as if were sonar by sending out “pings.” The horns here seem to be at least 30% louder than US models and we could see custom horns emerge here similar to how there are custom ringtones for phones.

5. Wi-Fi

There is no need to ask if a venue has WiFi since it’s more efficient to ask what the password is (usually 12345678 or some similar variation). Almost every cafe or restaurant provides free Wi-Fi (that works when an undersea cable isn’t damaged). The widespread availability of Wi-Fi could pose a cyber security risk in the future, especially if the lax attitude toward privacy continues here.

6. Motorbikes

Vietnam is the world’s fourth largest market for motorbikes. During rush hour, motorbikes form rivers, which larger vehicles attempt to ford or cut through with impatience. Trying to navigate an intersection with other motorbikes is probably akin to being in a mechanized phalanx. Companies like Yamaha Motors Vietnam need to position themselves carefully considering that the Vietnamese dream is to drive to work in a car.

7. New construction

Drive around Hanoi and you can hear and see the future of Vietnam. Fly into Ho Chi Minh City and you can see the cranes that dot the city from above. Some future projects will be added to an already large real estate inventory (with outrageous prices per square meter) while smarter developers will find ways to differentiate their projects via advanced automation, control, and integration technologies in buildings to benefit end-users (and ultimately, to increase ROI).

8. Recycling

“Reduce, Reuse, Recycle” here is “Resell, Reuse, Repurpose.” Empty water bottles are collected and sold to recyclers. Anything that is not completely broken or destroyed is used or repurposed until it falls apart. It’s one of the most efficient aspects of Vietnam—especially when contrasted to some western habits of instantly replacing or upgrading appliances.

9. Name Brands

Nouveau riche are rising in status and increasing in numbers. Of course they are flocking to luxury brands but some lack the sophistication that usually comes with style. As they say, “money doesn’t buy class” so there is opportunity for etiquette schooling and training, especially in the north.

10. Youth

Young people are everywhere and although there are far too many banking and finance majors, they are the future of Vietnam (as cliched as it may be). A segment of them are break dancing, popping, locking, and dropping their ways into adulthood while those studying STEM subjects seem to be diving headlong into startups and IT outsourcing. Right now, many young Vietnamese idolize KPOP stars and are hungry for American culture—but they will all eventually craft their own styles.

11. Touch

Personal space does not exist here. Touching, at times inappropriately (from western point of view), is a way to communicate (since much of Vietnamese language relies on context). Couples (not just romantic ones) can be seen walking together in a semi-drunken stagger while talking loudly, laughing, or sharing some inside joke. Be prepared to “pinball” off some people in crowded public spaces as space is at a premium. Co-workers regularly and playfully slap each other; a sign of affection.

12. Drinking

Drinking and Vietnam go hand-in-hand. Beer Hanoi, Beer Saigon, Beer Truc Bach (the finest beer in Vietnam), Beer Halong, Beer Hue—you get the idea (those are all beer brands, by the way). Then there is ruou, rice alcohol which can come in a variety of flavors. Drinking is an occasion for bonding, building soft relationships with counterparts, and for social (and professional) lubrication.

13. Smoking

Cigarettes, traditional bongs, and hookah. Non-smokers are in for a rough time in Vietnam—there’s always someone smoking nearby (usually Marlboro or Thanh Long brands). Smoking is allowed indoors and is encouraged in nightlife spaces. The air quality already is not great in major cities like Ho Chi Minh City and Hanoi—the longterm health implications of these combinations are alarming. Purchases and installations of air and water filtration systems will become more common as Vietnamese seek to protect their children from harmful exposure to pollutants.

14. Music

Music is used to attract customers on the street, to drown out one’s senses in nightclubs, and just because someone is in the mood to blast it. Young people on the street break out into impromptu ballads or sing along with songs in unison. Overall, music here is dangerously loud and Vietnamese will pay the price for these unsafe audio levels in the form of fees to audiologists.

15. Stares

Everyone stares here, especially if you are an attractive woman, a foreigner, or are different in any way, shape, or form—in that case then they stare at you as if you are an alien. A simple smile or wave can break the ice but coming from a culture where staring is considered impolite, it can be jarring to some.

20 Years (+/-)

Twenty years ago this list would have been radically different except for a few items. Most vehicles on the roads were bicycles at that time. Imagine what a snapshot of Vietnam will be in the year 2035 with approximately 110 million people. Unrecognizable? Some parts Bangkok and other parts Hong Kong? Sustainable eco-tourism? A center for innovation in Southeast Asia?

In the early 20th century, the population of Vietnam was about 20 million. Today, Vietnam has over 90 million people. Vietnam is rapidly changing; some changes are positive and while others are unclear. What will be Vietnam’s role as we continue deeper into the 21st century? Only time will tell but one thing is certain—the pace of change here will surely increase.

Taking a Closer Look at the IPP

February 8, 2015/1 Comment/in Challenges, Opportunities /by gktagroupVN

In our last post, we outlined the IPP, explained its goals, and touched upon some of the challenges ahead for the program’s stakeholders. This week we are going to take a deeper look at the IPP and the cultural, comparative, and collaborative challenges ahead for the program in Vietnam.

Last weekend we sat down with Chris Zobrist, the Senior Innovation Partnerships Expert at the IPP, and he shared his thoughts on operating in Vietnam, the potential for entrepreneurship and innovation on a local level, and how the IPP factors into the changing landscape in Vietnam.

Can you share a bit about yourself? What’s your background, your role in your organization, and where are you located?

CZ: I’m currently working as Senior Innovation Partnerships Expert for IPP, which is a joint program funded by the Foreign Ministry of Finland and the Ministry of Science and Technology of Vietnam. My background is as both an entrepreneur, having started many businesses over the last 15 years, as well as an entrepreneurship educator, spending part of my time teaching entrepreneurship and developing curriculum in several universities in Vietnam.

What kind of opportunities do you see in Vietnam over the next five years?

CZ: Vietnam has a lot of talent, especially in engineering and software development, and there are already a few high-growth companies as well as local start-ups planting entrepreneurial seeds here.

What’s the best way to establish trust with Vietnamese business counterparts?

CZ: It depends a lot on the individual with whom you are trying to build a relationship, specifically in terms of their background. Generally, the best way to get to know someone is through someone they already know and trust, as in many cultures, Vietnamese really value social capital, and this can be transferred from one person to another through a proper introduction. Besides introductions, sharing meals, and drinking together are also good ways of building trusting relationships which is an essential element of working together.

What’s the biggest difference between American and Vietnamese mentalities?

CZ: Coming from a developed country that churns out high quality products as well as infrastructure (roads, public buildings, etc), Americans as well as people from other developed countries have a natural expectation to see and make things at a high standard of quality. Vietnam is still a developing country, so many things are made with what little resources were available, and so the expectation for quality coming from domestically produced goods is not high.

What’s the hardest part about doing business in Vietnam?

CZ: Ensuring high quality standards.

Do you have a favorite quote?

CZ: “I’m all for progress, it’s change I object to.” – Mark Twain, I like this quote because it is the most apt description of the greatest challenge facing entrepreneurs and innovators in almost every context, and especially true in a country like Vietnam.

What are the biggest differences between Hanoi and Saigon in terms of doing business?

CZ: Saigonese are generally much more open to new people and ideas, as long as there’s a clear opportunity and logic in place. Hanoians are much more conservative, so even if they are presented with an attractive opportunity, they will be reluctant to mobilize the needed resources to capitalize on it.

What are the necessary attributes to succeed in Vietnam?

CZ: Social networks and building trusting relationships are keys to success in Vietnam.

Do you have any advice for expats/locals who want to be entrepreneurs in Vietnam?

CZ: Entrepreneurship is a team effort, so if you want to be successful, you need to learn how to network and collaborate with others to get things done.

Entrepreneurship, Innovation, and the IPP

During our discussion, Mr. Zobrist made it clear that the IPP is looking for people who have the necessary motivation, connections, and capacity to scale a company globally. That means that local companies will eventually have to implement international accounting standards, utilize English as an official working language (especially if looking to raise funding from foreigner investors), and clearly communicate a company’s Unique Selling Proposition (USP) across markets and cultures (differentiation).

While it might sound challenging, what the IPP is seeking to achieve isn’t impossible because it’s already been done before in Japan. Mr. Zobrist pointed out that Japan went from a ravaged post-World War 2 economy to the world’s second largest economy in the 1990s. What enabled Japan to be successful in its economic transformation was a stark shift in the workforce mindset, which even facilitated new vocabulary to implement innovative solutions.

Before this paradigm shift in Japan, specific industry terms did not exist to describe small batch, high quality production to factory workers. The Japanese created their own processes with their own resources to drive economic growth in 20 years; Japanese engineers, managers, and leaders took innovative ideas, applied them to manufacturing and processes and the result was innovative products from brands such as Sony, Honda, and Toyota. Thus, the development of a new technical language was necessary, which involved a social level (individuals, units, company culture, etc.) of change in innovation, and ultimately led to a change in output of manufacturing (lean manufacturing).

Vietnam currently has a similar language challenge ahead of it; for example, the terms doanh nhân and doanh nghiệp can mean “entrepreneur” or “businessman” and are used interchangeably (and sometimes ambiguously) in Vietnamese. Along those same lines, sáng tạo means “creation” while đổi mới means “renovation” so combining the two (sáng tạo đổi mới) is the closest meaning to “innovation” (literally “creative renovation”) in Vietnamese. The language will have to evolve in order to reflect the high standards and creative thinking that are necessary to maintain a competitive advantage in the global marketplace.

An ecosystem like Vietnam’s needs both entrepreneurship and innovation in order to foster the creation of high growth and innovative companies with a global outlook. If a company chooses to keep the status quo then it will stagnate, or worse, die. Copying existing models can be valuable, yes, but not nearly as valuable as new ideas that lead to the creation of value for a large number of customers or stakeholders. High growth companies are innovative and innovation requires change–there is no getting around this fact.

New language can shape new segments of a culture and creating new and/or dedicated Vietnamese words for entrepreneurship and innovation will allow the exchange of new ideas more efficiently and also help to facilitate a change in mindset–goals that the IPP hopes to realize once its integrated system is fully operational (good inputs producing good outputs).

The IPP seeks to perfect the way of building innovation systems in order to turn them loose and harness the innovative and entrepreneurial resources here in Vietnam. Then, the IPP can develop iteratively by building and expanding on foundational knowledge (training individuals and teams who can then train other individuals and teams and so on). In short, the IPP is building a Minimum Viable Product (MVP), learning from the outcomes, and making the necessary changes (quickly and fully) in order to make the process of creating high growth and innovative companies more effective and efficient in the future.

When the first phase of IPP finished at the end of 2012 there were some major lessons that were learned, leading to a promotion of transparency, accountability, and momentum for IPP Phase 2 (which began in January). This public-private partnership, comprised of a core curriculum and fellowship program, will eventually fully integrate entrepreneurship and innovation–but this process will require time, talent, and commitment at the individual, community, and governmental levels if it is to succeed in its mission.

Toward the end of our conversation, Mr. Zobrist pointed out that the IPP will have its final evaluation in 2018 but for now, the short term focus is on capacity building and making grants available to suitable applicants in this “wilderness stage.” However, the first significant indicators of progress could be as early as the end of this year or in early 2016 as the Fast Track training draws to a close and the New Innovative Companies are eligible for external funding on Demo Day.

With approximately 200 Expressions of Interests submitted to the IPP for New Innovative Companies, we look forward to seeing what kinds of teams are selected for the IPP–and more importantly, what kinds of teams, trends, and lessons emerge from the other side of the Fast Track Training.

Thanks to Chris Zobrist for sharing his time with us.

Setting Expectations Across Cultures

January 27, 2015/in Challenges, Culture /by gktagroupVN

: Still considered Hanoi.

: A beer garden in District 8, HCMC.

: Bui Vien in HCMC.

: Old Quarter in Hanoi.

: Hanoi Rock City.

: Jaspas in Lotte Center Hanoi.

: The view from the observation deck at Lotte Center Hanoi.

: Ngo Quyen, Hanoi.

: No traffic lights, no problem!

: Son Tinh Camp.

: The view from Puku’s.

: West Lake nearing rush hour.

Lately, we’ve been meeting with university students from Foreign Trade University, Diplomatic Academy of Vietnam, and Banking Academy of Vietnam—and we’ve also been encountering some newcomers in Vietnam.

We’ve previously covered the youth in Vietnam, in particular how the true potential of Vietnam is embedded in its youth and in finding creative solutions to global problems, e.g., frugal innovation. Overall, we still maintain our high aspirations for the young Vietnamese that we have encountered and even higher expectations for the future of Vietnam because of them. We have also previously covered communication here in Vietnam but this week we are going to set the stage for interactions between foreigners and locals because there can be a lot of misreading and miscommunication between cultures, especially when there is a mismatch of expectations from the onset. It’s important to point out that Vietnam itself is not homogenous–there are great differences (accents, attitudes, allowance for risk) between north, south, and central areas of the country.

From an Outsider’s Perspective

Overall, there are some very traditional aspects in Vietnam to consider; it’s a patriarch society where saving face is crucial and most sensitive subjects are handled indirectly. Social events are a dance of respect, camaraderie building, and copious amount of alcohol. In the Vietnamese language, there are different ways to address the person you are speaking to, depending on if s/he is older or younger than you, your parents, and his/her position in society or environment relative to yours. Thus, a situation that would be normal between colleagues in the west would be very different here as age and relationships would come into play if there was ever a dispute.

The following are advice and suggestions for new expats (compiled from experience, anecdotes, and research)—not all of it applies to every encounter, rather these are themes that seem to permeate through interactions here and that we have reached consensus on.

Everyday and specific problems aren’t fully addressed as they are a sign of weakness (saving face); anything that is perceived as being negative is shunned. For example, we asked a client what their hardware defect rate is for their product line. Their response was, “we aim to have a hardware defect rate of 1%.” However, that response didn’t inform us what the current hardware defect rate is.

A lack of negative points in a discussion needs exposure; things will get swept under the rug. In the worst cases, problems will be actively hidden.

Figure out when yes really means yes; get a commitment from your counterpart. Trust but verify. Don’t believe it until you see it (completion or payment). Often, we find that people here are very good at going from A-Z but they miss the required steps in the middle unless questioned and, in some cases, led down a path of logic. You will have to guide many elements of scope or else they will fall through the cracks.

Don’t listen to what people say, look at what they do.

Your author worked on a project in HCMC a couple of years ago. One of our local partners missed five deadlines in a three month period which caused multiple issues with the client. Who was more foolish? Our partner for continuing to miss deadlines or us for believing him after he missed the second deadline?

If you are working on a project beware of unreasonable timelines and expectations, especially if there is a set date for delivery (such as an event). A common tactic is to give responsibilities away close to a deadline, and then assign blame when things go awry—especially for subordinates. However, those same people will take credit when things go well. Don’t do things for free or deviate outside your scope or else you will be blamed if something goes wrong.

It’s not uncommon for local managers to request an “urgent” item the night before (via text message) for a sub 12-hour turnaround or even as an employee is walking out the door at 8:00 PM before the weekend.

Many local partners will want to proceed ad hoc and may be concerned about “protecting” the end customer. Sometimes, the price of a good or service is secondary when trying to close a deal, especially through an intermediary.

The concept of “allies” and “enemies” within an organization is very prominent in local organizations; this phenomenon can be especially noticeable at the C-level in large or public organizations. Think tree trunks and roots for each position.

Give options but not more than two; there are many masters of “getting you to do work for free” here.

You will be stared at in the streets a lot. Smile back to break the ice.

Common Questions and Phrases

In the course of meeting Vietnamese, you will be bombarded with questions about your personal life and work in Vietnam. In no particular order:

Where are you from?

Are you married?

What do you think of Vietnam?

Do you have any brothers or sisters?

Where do you live in Hanoi?

How long have you been here?

Are you an English teacher?

You’ll also have to diplomatically handle some uncommon statements (in the west), such as:

“You’re handsome.”

“I’m training to be a good wife.”

“You should find a Vietnamese girlfriend or wife.”

“You would make a good wife.”

Above all, your nationality can either be an advantage or a disadvantage—but very few people here are overtly anti-American, anti-French, or anti-Chinese (although last year’s riots are an exception).

Working Effectively with Foreigners

Foreign companies will have increasingly higher requirements for local workers as FDI amounts increase. Local consumers will also demand better customer service or brand experiences as their purchasing power increases. The following advice has been compiled from students, workers, your author, and others who have worked with locals on a variety of projects at different levels—this advice is specifically for students.

Ideas without execution are delusions.

Show up five minutes early to meetings—don’t show up late; every time someone is late then s/he has to get caught up with events that already happened.

Say “I don’t know how to do that” when you actually don’t know. It’s better to ask questions before doing something than to do it wrong the first time. And you will actually save time instead of doing things over and over again.

Be focused in meetings. And be quiet when others are talking.

Listen to the one who is speaking. Again, don’t talk over others; it’s rude.

Actually give your opinion when asked for it—somebody asked you because s/he cares and you probably have insight that the person who asked you doesn’t have.

When everyone is agreeing about an issue, try to take the opposite position—groupthink is how companies are ruined.

Ask: “what can I do to help?” Follow through. The greatest shortage of resources in Southeast Asia is quality talent who can understand “glocal” requirements, i.e., global and local.

Don’t make silly excuses for whatever reason you are late or don’t feel like working (rain or traffic). Illness, a death in the family, and/or caring for an ill or injured family member are not silly excuses.

Think critically. Be skeptical; talk is cheap.

Prioritize. Write down your goals and tell someone. Most people will be happy to help or mentor.

Say no when you actually don’t agree with something.

Work in advance to meet the deadline. Organize work smartly to have time to think, plan, do, and win.

Ask for help when you need to; not the day before a deadline. Don’t wait until the last minute, it shows a lack of respect for a person’s time.

If you see a problem, mention it and try to come up with a solution for the problem.

Don’t think outside of the box, expand your box.

Don’t ever say “cannot” or “impossible” or “so sorry, please sympathize with me.” It wastes everyone’s time, including yours.

Be confident but remain humble, always. People acting like a “big boss” and shouting and screaming at others is not viewed well in the west. Steve Jobs was an exception.

Try to keep things professional; try to keep an open mind. Don’t be sexist; don’t make fun of your teammates.

Think through ideas to the end. How will you do that? And then what comes after?

Everyone has good ideas and no one has a monopoly on good ideas.

Don’t ask people outright for tangible help: money, job, free work. Try to help them first or ask what their biggest problem is and how you can help.

People who cannot follow through cannot be trusted—this goes for expats and locals.

Trust takes a long time to build and can be lost in a moment—don’t abuse someone’s trust.

The Biggest Piece

The advice offered above is non-exhaustive and has western bias according to Hofstede’s dimensions. The best thing to do is to talk to people; if you are a newly arrived expat then you should be talking to someone new every day. If you are a student and want to know more about foreign customs then ask someone from that country. Reading about it and doing it are two different things and the best way to learn something is by doing it.

The first time you do something is the hardest–eventually you’ll get the hang of it and will be more efficient and effective at it, whether it’s communicating requirements, asking to make sure something is done, or conflict resolution (or avoidance). Like the variety of photos in the gallery, Vietnam has many faces, shapes, forms, and settings. Don’t try to stereotype or label what you see, but instead try to understand why things are the way they are–that’s way more important to do than criticizing it or condemning it. Once you understand something, then you can see where the opportunities lie–even across cultures.

Building a Brand in Vietnam

December 23, 2014/1 Comment/in Challenges, Opportunities /by gktagroupVN

Building a successful brand in Vietnam (or anywhere) requires having a clear idea of local consumer (and by extension, social) norms, trends, and perceptions (i.e., market in general) in addition to understanding the local, regional, and national cultures for successful positioning in a country. Yes, conspicuous consumption exists here in Vietnam but for many brands, simply copying and pasting a western marketing campaign won’t work beyond luxury brands that convey a sense of status to those around the targeted consumer. Sometimes, understanding a market means a change in mindset.

This week we are taking a look at three modern scenarios: the first, a globally known brand seeking to capture market share in Vietnam; the second, a local brand growing domestically (and which could eventually lead to the third scenario); and the third, a local brand entering foreign markets (which will most likely increase in the future). We’ll also explore some potential ways forward for Vietnamese companies in the future.

Global Brand to Local Market

Earlier this month, we were invited to the first ever AMX Seminar in Hanoi, which was followed up by a similar version a few days later in Ho Chi Minh City (HCMC). The audience in Hanoi was primarily comprised of 20-30 Vietnamese Systems Integrators (SI) with less than five foreigners in the audience. After the half-day presentation, we were asked to give feedback on the potential for the AMX brand in the Vietnam market and how to improve service and support overall.

In short, the event was a solid step toward establishing the AMX brand in Vietnam but it won’t be an easy win in this market as Crestron, Savant, and Extron are all available here as well—not to mention local and/or less expensive offerings. So, there’s definitely opportunity for AMX (and any technology brand) to establish itself as a market leader and ride the growing economic wave here—but it will have to be in a personalized manner that resonates with Vietnamese stakeholders and/or expat decision makers.

These technology brands don’t have counterfeit and quality issues to deal with because their products are sold through authorized dealers and country distributors. For other industries, such as cosmetics, there exists a trust deficit: how do local consumers know the products that they are buying are authentic? Thus, consumers prefer hand-carried cosmetic items from trusted friends or associates who are traveling to Vietnam from more developed markets such as Hong Kong. After all, skin and eye products are the ones that you don’t want to be cheap on.

Local Brand to Local Market

Another company that is building a (completely) new brand here in Vietnam is Emigo, which is owned by VinFashion of Vingroup. The Emigo brand was launched earlier this year and it already has two open locations including Vincom Center Ba Trieu and Vincom Mega Mall Times City. Approximately four additional locations are slated to be opened throughout Hanoi in the near future.

The Emigo brand has the potential to make an impact on the fashion scene here since its offerings are more affordable than brand name imported clothing lines (its designs are similar to Zara or H&M) and there is always an element of national pride in buying from a Vietnamese brand. It remains to be seen how the Emigo brand will be built domestically but for sure Vietnamese shoppers will want to inspect the materials and quality of the real products for themselves before deciding whether or not to buy into the brand.

If Emigo can resonate with local consumers then it might be able to build momentum here and expand abroad—if those are indeed the plans that VinFashion has in store for the brand. Still, could we see Emigo products in western stores one day? If so, then perhaps the clothing label will read “Created in Vietnam” in addition to “Made in Vietnam.”

Local Brand to Global Market

Brands coming into Vietnam have the advantage of prestige and case studies in western markets—but what about the reverse situation? How would a Vietnamese brand fare in the global marketplace? When foreigners hear “Vietnam,” what is their impression of Vietnam, i.e., what is Vietnam to them? And, what is Vietnam known for globally? These are all questions that Vietnamese brands looking to go abroad will have to find the answers to in order to enter new markets in the most efficient way possible.

A Vietnamese client recently told us that they wanted to build a “Vietnamese iPhone” in part due to the success of Apple’s iPhone in Vietnam and the rest of the world. Instead, we suggested that they differentiate their product by creating a secure smartphone (similar to the Blackphone or Boeing Black). Given last year’s revelations by Edward Snowden and Glenn Greenwald, security conscious companies might prefer another option for secure handset communications beyond American and Chinese manufacturers, especially if the alternative price point is attractive. Or a suitable Vietnamese startup could always take a page from Xiaomi’s book (2010 wasn’t so long ago).

The growing risk for Vietnamese companies who have the technical skills to produce something for other markets is that they might create something that only Vietnamese consumers will like. For example, when Yamaha Vietnam unveiled its website redesign in a “flat design” style, the feedback they got from Vietnamese visitors was that the website had no information and was hard to navigate. Vietnamese taste and design considerations can be very unique, even in Southeast Asia. Another way to think about about going to another market is that it’s not realistic for an American company to come to Vietnam, do things the “American” way and expect to be successful. Similarly, how do you think a Vietnamese company trying to do things the “Vietnamese” way in the US (or any other country) will fare?

Choosing the Long Term

During a conversation last week with some Vietnamese/New York fashion industry insiders in Hanoi, we discussed how to create and position a future clothing brand here in Vietnam. What is Vietnam’s competitive advantage in manufacturing? Vietnam’s current advantage is its low cost of labor (in addition to other financial incentives) which has prompted giants like Samsung and Intel to setup multi-billion dollar manufacturing facilities here.

However, inexpensive labor won’t last forever nor will Vietnam’s “Golden Population Structure” remain intact. Just as investment has flowed into Vietnam from China, so too will investment flow into a location with less expensive labor costs—perhaps to another neighbor as well. So looking ahead, what product or service might Vietnam have in the future that will give it an advantage in the global marketplace?

Today, Vietnam has plenty of raw materials but they aren’t finished goods which Vietnamese manufacturers can command a premium for. Not to mention that we live in a world of limited resources, so what can Vietnam offer the world in the future? One way to answer this question is to think about the challenges that Vietnam will face in the future (and that other countries will have as well). If Vietnamese companies continue to or start working on solutions for those problems then they can be ahead of the curve. After all, there is innovation here–many Vietnamese are “professional improvisers” in their daily lives and they are quick and resilient learners, as history has shown.

In the future, Vietnam won’t be the only country that has a rising national power consumption (and therefore rising demand for coal if alternative sources don’t emerge), it won’t be the only country with more cars on the road (and therefore more air pollution), and when sea levels rise it won’t just affect a single city like Can Tho in the Mekong Delta—it’ll affect hundreds of cities and displace millions of people. The point here is that the challenges of the future won’t be exclusively Vietnamese, but Vietnamese-origin—and not uniquely Vietnamese—solutions can be used to solve the challenges of the future (if those problems are solved here first or at the very least knowledge can be shared abroad). However, it takes a long term mindset to truly tackle these transnational issues of our time in addition to investments in education, human capital, and financial resources for research and development.

Peter Drucker, the 20th century’s greatest management thinker advised to always choose the long term, because it always comes true. Focus on your long-term strategy, but take advantage of the short-term opportunities in the meantime–that’s how a future brand in Vietnam will be forged, and how Vietnam–the brand–can begin to take shape as well.

The Olympia Schools

December 15, 2014/in Challenges, News, Opportunities /by gktagroupVN

We all remember the best and worst teachers we had growing up but what makes a school great? Is it the students, the teachers, or the environment? Is it a top-down approach, organic growth, or innovative teaching methods? Or is it simply a matter of caring and going beyond preparing students for the next stage of life?

With some exceptions, primary and secondary education in Asia doesn’t have a stellar reputation to begin with: many schools are pressure cookers that are ripe with rampant student cheating, some who freely admit to doing so. In some instances parents pay teachers to “look after” their children and teachers pay the school’s principal to get a job in the first place. Traditionally, the goal of education in large parts of Asia is to absorb and repeat as much as factual knowledge as possible (rote learning) all without questioning the wisdom and authority of teachers.

The Olympia Schools aims to change the educational mindset whereby students focus on how to learn and access information so that they are able to develop the critical thinking skills which will be essential when facing new challenges in the 21^st century. The school places emphasis on the process of learning, and seeks to intersect theory and practice for each of its units throughout the school year.

Simply put, the Olympia Schools are a new breed of education in Vietnam. The school started out as Dream House 11 years ago and was the creation of four Vietnamese women who weren’t satisfied with the local kindergarten offerings in the neighborhood. So naturally, they did what anyone would do: they opened their own school. Word spread about the new school and it became a popular school with parents who wanted better alternatives for their children. It was so popular that when the co-founders’ children finished kindergarten, they started an elementary school. Finally, about four years ago the school became the Olympia Schools. Today, some students are bused to the school from up to an hour away.

Christopher McDonald, a native of Michigan, is the Head of Schools. He has played an integral part in shaping the school’s atmosphere and amenities to form the current school environment. We stopped by on a recent Friday morning to speak with Mr. McDonald about what makes the Olympia Schools unique in Vietnam and how the school is preparing its students for life (the school’s motto).

A Meteoric Rise in a Decade

The Olympia Schools is located in Trung Van, Tu Liem, Hanoi. The facilities at the school include a tennis court, a football (soccer) field, an art studio, a games area, a weight room, and even an underground swimming pool. The vast majority of the students are Vietnamese and instruction is given in both English and Vietnamese. Among one of the many notable firsts, the school was the first in Vietnam to offer the PSAT last year and currently offers AP courses. During the summer, the school is host to a camp called Utopia where participants create their own society.

The campus has a distinct international feel to it and has a wide range of easing colors throughout the halls. When we arrived, the first graders were practicing for the Winter Festival, to be held later this month. There is a good feel of school spirit, from the formal uniforms (which are worn every day except on Casual Fridays) to the country flags hanging in the entrance hall to the nice green spaces surrounding most of the school (it’s sometimes hard to find quality green space in a bustling city like Hanoi). Even Martial Arts and cooking classes are offered and the students’ photos are displayed on digital signage on their birthdays, a nice way to make the students feel even more special.

Below is the school’s mission statement:

“The Olympia Schools embrace Vietnamese values while providing an integrated experience in the study of English and global issues by developing fundamental skills, fostering creativity and problem solving, and promoting ethics that allow students to adapt, to improvise, and to overcome challenges–we prepare students for life.”

Grades 1 through 12 are offered at the campus and there are plans to bring the kindergarten classes on site in the future. The school also has partnerships with educational organizations in the United States as well as Canada—something that gives it an advantage in terms of prestige but also exposes its partner schools to resources on the other side of the world–a winning formula for all.

The school also focuses on soft skills beyond the classroom to develop all aspects of a student’s character and attitude. The faculty is a mix of local and foreign teachers and we saw several classrooms that had projectors as you would find in the US. The school currently uses a four term school year where students focus on different objectives each term. For example, Term 1 revolves around project based learning (PBL); Term 2 ends in traditional formal testing; Term 3 features Creative Learning Expression which requires the student to demonstrate what s/he has learned via any medium; and Term 4 is a portfolio review/analysis which culminates in a reflective end to the school year. For more information about the terms, please see here.

Additionally, there is a summer skills component which may include an internship, e-project, or reading assignment. As a testament to how impactful the school’s efforts are, Vietnam’s Ministry of Education and Training (MOET) has followed The Olympia School’s success in regards to using integrated studies in its curriculum. The result has been Olympia Schools graduates going on to be successful in their university careers, in large part due to the emphasis on scholarship and continuing studies.

As profiled in the Forbes piece:

“It was the first Vietnamese school with a college counselor on site like an international school—normally college counseling is offered via a separate paid center—and its graduates often attend university overseas.”

The school’s alumni in recent years have gone on to study in the US, Singapore, Australia, China, and other countries. From organizing a kindergarten class to building an entire campus and sending students off to universities within a decade; an amazing feat indeed.

A Future Model

On December 20 and 21, the Winter Festival will be held at the Olympia Schools. The Winter Festival will feature performances, a fair, and games and will include participants from other schools in Hanoi as well. This year’s theme is fairy tales of Vietnam and other countries with the purpose being to raise money for the “Seasons of Care” fund which was founded four years ago. The fund aims to build a new water supply and filtration system for Na Loc Primary School, Ban Mu, Tu Xuyen, Van Quan County in Lang Son Province, close to China. Art performances and games will be held from 2:00 PM to 9:00 PM on both days as the fair provides opportunities for the community to come together to make an impact in Vietnam all while enjoying each other’s company.

So beyond this month, what’s in store for the Olympia Schools? Well, it hopes to be the new model for schooling in Vietnam by combining learning with experiences in and out of the classroom, i.e., learning by doing and by sharing with others.

In this day and age students cannot afford to be mere bystanders or observers of history because the classroom of today will be the workplace of tomorrow in terms of diversity, culture, and foundations of excellence. The successful students will be the ones who communicate effectively, who engage with different and relatively unknown cultures from their own, who think critically, who ask thoughtful questions, who reflect upon their experiences, and who can work together with anyone to accomplish synergy.

Schools like The Olympia Schools realize the new world that we all live in–this Information Age–and seek to prepare students for a rapidly changing and volatile world by enabling them to craft and assemble the tools to understand and overcome complex global challenges that they will encounter in their lives. This task is critical because one day in the near future students will have to answer a vital question: what does this change mean for me?

Thanks to Christopher McDonald, Head of Schools for sharing his time with us and answering our questions.

Long Van Group

November 30, 2014/in Challenges, Culture, Frontpage Article, Opportunities, Workforce /by gktagroupVN

: Long Van Group Organizational Structure

: Long Van Group Brands

Long Van Group, founded in 1992, is comprised of four companies: Long Van NTV, Loval, ALV, and Hondalex. Through its portfolio companies based in Vietnam and the US, the family-owned group is perhaps best known for its aluminum product manufacturing—which is how it got its start. The other companies include a trading company in Ho Chi Minh City for the domestic market, a trading company in the US for the international market, and a joint-venture with Hondalex. Recently, we sat down with Thy Van Nguyen (Vanessa), whose official title is Operational Director but she is heavily involved with the strategic vision of the group as well as integral in implementing organizational change across the companies.

Ms. Nguyen was born in Ho Chi Minh City and moved to the US when she was 16. After being based in Seattle, Washington and attending university in the US, Ms. Nguyen moved back to Ho Chi Minh City about 18 months ago in order to focus on the family business. She currently spends about 80% of her time in Vietnam between Ho Chi Minh City and Binh Duong Province, where the manufacturing activities of Long Van Group takes place. Currently, one of Ms. Nguyen’s major initiatives is the transformation of culture in her organization, something that she has successfully done in the domestic trading arm of the group.

Changing a Culture From Within

Ms. Nguyen is a big believer in getting the people doing a task or activity to understand the purpose of it. The people on the front lines are already the best people to do to the job so they will also be in the best position to improve the process. It’s only a matter of getting them used to speaking up and contributing regularly for the reward is improved efficiency and recognition by management and their peers.

That goal is sometimes easier said than done as older managers in a company have a more traditional mindset of top-down management style. Therefore, it’s necessary to first change the managers—either their attitudes or outright replace them (however, Ms. Nguyen didn’t have to fire anybody). If the managers had not bought into her vision at the onset then the project couldn’t have worked. Having the managers on board enabled the culture at the trading company to completely change within eight months but it took six months before she began to see the fruits of her labor. It also helped that Ms. Nguyen speaks Vietnamese in addition to English, and is the daughter of the company’s owner so she did have the power to initiate and implement change. However, despite these advantages it was still tricky for her to balance the right relationship with the workers due to some strong local cultural elements.

Part of the culture in Vietnam revolves around a fear of power which has roots in the royal history of Vietnam and continues in the form of wealth and political power today. Therefore, people in positions of power might need to be more informal, more cheery, and re-emphasize what resources are available to workers who need help, guidance, or any kind of assistance. People aren’t going to ask for help on their own or tell you what problems they have. Vietnamese culture is generally not expressive; a Vietnamese son or daughter can do 1,000 things right and not receive a single compliment. However, if s/he does one thing wrong then they will hear about it to no end. Thus, a lack of a negative response is a positive step. It’s important to praise workers because no one really says compliments from an authority position so it really impacts their subordinates.

It’s interesting to note that Ms. Nguyen was able to effectively change the culture because of gaps in old culture when other senior leaders were focusing on other business lines. Her changes came at the right time because the old system was not effective for expanding beyond the original 20-30 employees since it was largely based on gut feelings.

It may also be that everybody can see the problem at hand but no one wants to do much about it–Ms. Nguyen sought to change that. The interesting thing is that the workers want to hear different perspectives but not necessarily change the old ways of doing things. So even though everyone can point out the problem, no one can suggest a solution because it may be too risky to suggest a potential solution.

This challenge of self-confidence and expression has its origins in the educations system in Vietnam. The educational culture in Vietnam revolves around being told what to do; the teacher tells you the answer and that’s the answer–end of discussion. One way to overcome this element is by tapping into the fact that Vietnamese people love to look good; they want the story to be about them. They love the credit so give them that credit when appropriate. For example, present them with a situation and ask them to help. Then you can follow up with: “I listened to you and it worked.” In these moments you will see how proud the workers are and have just established a precedent. Perhaps the most effective way to connect with workers is to tell them stories, and then get them to be part of the stories. It can be as simple as presenting a scenario to workers and asking them, “if you had to make that decision then what would you do?” Indeed, not all changes are smooth and changing a culture is perhaps one of the toughest tasks to take on but by empowering workers it increases an organization’s operational efficiency overall.

Make no mistake: an organizational transformation is not without friction and conflict—especially when dealing with the “old guard.” Some people quit in the process, in part due to wanting to change the organization in a different way than Ms. Nguyen so they left. Changing the culture required that Ms. Nguyen trust that a real foundation was in place for the company to expand upon itself. To that end, she had to let go of some of the intensive focus she had on certain processes. These days Ms. Nguyen’s 62 workers at the trading company embrace and drive towards her and their vision of change.

Training and Developing Vietnamese Workers

Improvement is a continuous process at Long Van Group. Ms. Nguyen gives training courses once or twice a week for each division in her company in an effort to better prepare them for current and future work-related tasks. She strives to get different workers to select a unit each week based on a set list and give a presentation to the other workers. In her “guide-on-the-side” role, she asks questions and draws opinions from the workers and gives feedback at the end of each session.

During her training sessions, she will also share a story about a work experience, or conduct a workshop, or present a scenario. Then the workers will split into groups and talk about what each worker would have done in the scenario or what to do in the situation in the future.

Example: Your colleague sends an email to an organizational partner who you must coordinate with on a project. In the email, your colleague states that your company is not responsible for a specific portion of scope but that there are related issues that need to be addressed for the client’s benefit. The organizational partner’s vice director simply responds: “If the scope is not your responsibility, then your opinion does not matter.”

Ms. Nguyen will then question the workers on whether or not the logic of the vice director is wrong. Thus, the workers are solving problems with real experiences (the above example is actually used in training by Ms. Nguyen and was experienced by your author in Ho Chi Minh City last year) and are thinking about how to view situations more deeply.

This analysis is important because when responding to allegations some Vietnamese tend to lash out when things start to take a dive and they can take things personally even if they aren’t meant to be from your side. So it’s vital to be mindful of not only what you say (although that is important as well), but about how they feel (and taking care to let everyone save face).

Within Vietnam, southerners rely more on gut feelings whereas northerners are more logical. The southerners present themselves at face value; they want to prove to you that they care about you when they meet you. However, northerners want to compare status levels and act accordingly. Thus, foreigners might have a better time in Hanoi compared to “common people.” Northerners tend to think more before they talk so their use of words is better and more structured which presents them as being clever. Southerners speak more from the heart since they are generally more open and expressive. It’s important to be aware of your counterpart’s feelings because in Vietnam and in life, one can never do something big or grand without building a coalition.

Human Capital in the US and in Vietnam

In the US, people and workers are proactive while in Vietnam they are largely reactive. However, foreigners can learn a lot from Vietnamese people. But first, they must stop assuming and see things in limited possibilities. Ridiculous and downright crazy (from a western perspective) things could and will be possible because it may be the only option for moving forward in Vietnam.

The social structure is more set in the US due to the developed economy and Puritan work ethic. So in the US there is freedom to choose within set choices, i.e., the illusion of freedom because everything is already structured. Life is very predictable in the US so many people want to be proactive, they want to be ahead of the curve. Thus, Americans tend to assume a lot when planning.

On the other hand, Vietnamese are “proactive by being reactive:” they expect the plans to go awry so they bypass the planning stage and when things devolve they are better equipped to salvage the situation. Thus, Vietnamese prepare for certain situations but not for all situations. In that sense, they are able to make unreasonable (or even crazy) positions seem logical because they have developed these skills. They are very adept at framing an arena and taking up defensive and offensive positions and excel when things don’t go right, in part due to the messy social structure. It may be surprising to some that Vietnamese can be very practical because oftentimes there are no other options.

So, Vietnamese are really good at changing situation into their favor but they are also good at making crazy logic sound normal. Some people may believe that if they spot an issue and bring it up, then they will need take responsibility for it. People are afraid of responsibility because of the challenge of getting the task accomplished correctly. Vietnamese people like to look good so they don’t like to put their name on a project or idea in case it fails. But if it turns out good and then they take full credit. For Ms. Nguyen, a large part of the effort to change the organization is by marketing herself through self-branding because the perceptions of the workers will make or break any initiative.

Opportunities for Expats

To Ms. Nguyen, Vietnam is the perfect country to grow something big—but it’s a double-edged sword. Everything is based on relationships, which can be good or bad depending on the perspective. To be successful in Vietnam, one needs to be flexible and open-minded since many problems in Vietnam need to be solved in unorthodox manners. Structure beyond social doesn’t really exist, so if one relies on structure to move forward then s/he is in for a rude awakening (unless those connections are present). Above all, give Vietnam a chance but know where your limits are and what is the extent of your comfort zone for (operational and legal risks).

Expats shouldn’t assume anything in Vietnam and they will have to take on more responsibility to ensure that things stay on track and don’t fall apart. Things that are taken for granted in the west simply don’t exist in Vietnam. For example, the search results of Google, and Google VN are very different. Some people in Vietnam trust the US version more than the Vietnamese version. Also, Vietnamese websites generally don’t have a “how-to” section. For western websites, the product or service offered is described in depth and it is very clearly shown what it is and how it is done.

When explaining something in Vietnam, it has to be simple, clear, and consistently explained multiple times. Then, inverse questions need to be asked in order to triangulate what the actual response is for determining if the receiver understands or not. Communicating processes, requirements, or issues to locals can be timely and frustrating, even when explaining in the Vietnamese language. One way to get Vietnamese people to understand a process or information is through infographics—and in particular, youngsters will understand it better. They like the convenience aspect and the way the information is presented so they are more likely to understand it. If a member of the older generation doesn’t understand something, then s/he will just ask someone nearby or a close friend who will be put on the spot and could just blurt out something that sounds good but isn’t necessarily accurate. Thus, a crazy feedback loop begins where most of the information is wrong as the process continues. Besides, many Vietnamese don’t believe what they read. The older generations do, but the younger (those born in the 1990s and later) ones, no. Cute infographics can help explain things succinctly—and the cuter, the better; think anime characters.

In more general terms, most work fields don’t give newcomers to the country a chance. Connections are part of status which bypasses merit in many cases. It doesn’t matter if you are the best in your field, if you don’t have a good connection then no one will work with you. When arriving in Vietnam, get the connection first. Leverage being sent by a foreign company by learning about the country and forming bonds. Another option is to wait until you have the money to buy status here. In that sense, you don’t have to be the best person in your field—you can be average but still get a piece of the action through connections.

Drinking: Bad or Good for Business?

Still, business can be too much relationship-based; that is to say too reliant on gut feelings and feelings in general. Logic is largely used to make decisions in the US but in Vietnam they need to “feel it” in order to do something. These positive feelings are usually the result of some bonding over alcohol, either bia hoi, ruou, or some imported spirits.

Ms. Nguyen points out that her male employees never get drunk enough to be inappropriate at company functions. And for those who don’t drink any alcohol, while they can sponsor a “drinking nominee,” they could be at a disadvantage with their local counterparts by them not “truly” knowing the person when s/he is drunk. Thus, the best way to establish trust with Vietnamese counterparts is to drink alcohol with them—so if you get drunk easily then you must learn how to control yourself. Vietnamese truly believe that you will be yourself when you are drunk so in a way it’s like peering into your soul.

Everything you say or do shapes their perception about you, especially when drinking. The actual message, while important, is secondary since they are judging you via a gut feeling. It can be quite dangerous since Vietnamese may perceive an offense where there was none. When doing business, Vietnamese generally won’t trust you until you drink alcohol with them and they are able to see the “true you.”

How you are as a person when drunk may be the biggest indicator of doing a deal with Vietnamese. Their perception of you while imbibing will be the baseline for judging you. Once they see you drunk, then that’s how they will perceive you and they will hold onto this image of you until the next time you drink together. If you are a bad drunk, then beware.

The Next Step

Next up for Ms. Nguyen is changing the culture at the factory since it is a special case. The entire production was in the hands of two directors but the current result didn’t turn out so well so the focus is on getting workers to take more initiative and overcome fears of failure. Indeed, Long Van Group is at the forefront of providing high-quality products and driving organizational change in order to provide a better customer experience. Vietnam is becoming an even more prominent destination for outsourcing and manufacturing and as more projects are implemented here then the technical and management skills requirements will increase as well.

Today, China produces for much of the world but in recent years some factories have migrated to Vietnam, in part due to the fact that wages in China are higher than in Vietnam. However, prices of finished goods in Vietnam can be higher than in China because of other operational costs. The disadvantage that Vietnam has is that the workforce is less skilled than China’s and the economies of scale don’t exist on par with China. Quality control remains an issue in Vietnam as well.

As more foreign companies come to the Vietnamese market, the standards for local workers’ qualifications and skills will rise. A growing trend is for Vietnamese workers to take courses at private institutes to aid in their professional development, e.g., how to be a better manager or CEO. These courses are truly development on an individual level because people are there because they want to be better. For the students, Ms. Nguyen suggests that they seek to understand on a conceptual level and learn to connect everything.

“Learning how to connect things is the tool you need to work in the real world,” Ms. Nguyen advises.

Below, Ms. Nguyen shares some of her favorite quotes:

“Do or do not, there is no try.” –Master Yoda

“If you are a good leader, when your work is done, your aim fulfilled, your people will say, ‘We did this ourselves.’” –Abraham Lincoln

“You can listen like a blank wall or like a splendid auditorium where every sound comes back fuller and richer.” – Alice Duer Mill

Special thanks to Vanessa Nguyen of Long Van Group who shared her time with us and greatly contributed to this week’s post.

First Impressions of Vietnam

November 24, 2014/in Challenges, Culture, Opportunities /by gktagroupVN

Trying to explain Hanoi, and Vietnam in general to someone who has never been here can be quite challenging. For many expats in Southeast Asia, the region and its cultures can be difficult to understand and navigate let alone effectively explain to family and friends at home. And research, while helpful to understand settings, is not a substitute for direct experience.

This week we have a guest contributor who is with us here in Hanoi. Zdravko Tumbovski is an international businessman who has done business in Turkey, Bulgaria, his native Macedonia, and other countries. He arrived in Hanoi for the first time on Tuesday, November 18 in order to take a firsthand look at the Vietnamese market and to gauge its potential for his interest in trading with Vietnam and in Southeast Asia.

His professional experience includes an internship at an insurance company in Macedonia; a Business Analyst position at a family owned company, Info Group Ltd, which made investments in the Macedonian Stock Exchange and the Macedonian Real Estate market. Currently, Mr. Tumbovski is the founder and director of Z&Z Capital Ltd based in Bulgaria, which specializes in transport and logistics services in the European Union (EU).

Additionally, in conjunction with partners in Turkey, he is involved in import-export transactions, mainly in cooking oil, but they are also expanding to other commodities for the Turkish bazaar. His primary role is to find a suitable supplier and to negotiate the payment methods and transportation of the goods.

Zdravko shares his first impressions of Vietnam below:

After constantly moving around between the US, Europe, and the Middle East in the last seven years, I spent a considerable amount of time in Los Angeles this year. About a month ago, I reconnected with director of GKTA Group, whom I have known for several years.

GKTA Group introduced me to some of the many challenges, opportunities, and conditions faced in Vietnam. I felt attracted to learning more about this dynamic market and it didn’t take long for me to decide to come here and check out Vietnam for myself.

Even though I am still in the first week of my arrival, I must admit that I am having a very smooth transition to this country so far. I was already familiar with Asian cultures due to my friendship with Asians in my network that I have known for a long period of time, and also because GKTA Group put a lot of effort to set up at least one meeting per day with a local person where I can get his/her answers to some of my questions about his/her country’s future, his/her point of view toward foreigners, and the changes that s/he has seen the past five years in Hanoi, especially.

Hanoians and Hanoi

Vietnamese people in the capital of Hanoi are generally polite and quiet. It usually requires some time until they start to feel comfortable sharing their views, and begin to realize the goal of my questions because I see that they are not very used to foreigners who are interested in their culture, and who try to understand their values.

Vietnamese people seem to be the loudest on their motorbikes. They are honking at every cross street, and from my findings they rarely show anger with words, but only with menacing stares at the perceived wrong-doer. The amount of motorbikes and the traffic frequency for me was something unseen before; in short, outrageous.

Hanoi is a city with a long history, and it is shown on every corner. Hanoi has the street-selling spirit and it is still done traditionally and mostly inexpensively for locals. However, there is luxury consumption visibility in the younger generations and newly rich populations. For me, this is probably more visible because I was raised in a former communist country, Macedonia (Former Yugoslavia).

The Wi-Fi coverage and the use of internet are quite impressive compared to the expectation of technology in a developing country. The “drinking-coffee” habit is at large range, and the number of cafes is seemingly endless but a favorite of Vietnamese people. One new thing for me is using condensed milk (“sua dac”) in almost every cup of coffee—and I find it tasty—even if it is uncommon for me as a European.

Luckily, I am fan of Asian cuisine, and have been eating it frequently. Compared to other cuisines and the tastes of some westerners, you may remain hungry here if you are very picky with the food. The traditional street foods, or the local dishes in the very basic and not-so-modern restaurants can be tasty for people who are food enthusiasts and open to new flavors; on the other hand, it can be off-putting (even though I aim to be cautious with my language here), because I certainly know many people who would not be able to eat the local food here, and who would not be willing to be seated and served in the Hanoian or Vietnamese way of small tables and children chairs. So far, I enjoy it.

Work Ethic and Exposure

My personal view is that most of people here work hard and long hours. The basic example for that is the staff at the hotel where I stay. They are here every single day of the week, for over twelve hours per day. They are very friendly and very helpful even if there is occasional miscommunication.

When talking to waiters or other people in cafes and on the streets, I have come to realize that many of them have not had a chance to travel a lot. Actually, many have never been outside of Vietnam. The reason for that is first, money and second, time since, as mentioned before, they have to work almost every day, year-round.

There is a sense of trust that permeates through the people here. I had a very unique experience that occurred to me at the border upon arriving at the airport: I had arranged for visa upon arrival and at the bureau the visa was issued and stamped more quickly than what I had estimated, but I had no cash on me to pay. The customs officer asked me if I had any currency equal to the amount of $95 (the price of the visa), but I had none. The ATM was outside the immediate area, after the passport control, so I thought that I couldn’t consider the option to withdraw some money. As a matter of fact, the officer walked me through the immigration border without any checking and without any concern, just to withdraw the necessary money for the visa, and then led me back to her desk in order to pay. That was surprising. Actually, the border control experience in general was more liberal than in many other countries.

If I am allowed a chance or could offer some suggestions to Vietnamese who want to be successful with westerners, it would be:

Learn more English, the number of tourists is increasing and you need it

Strive to be more comfortable with foreigners

Be more creative for international businesses; this land is rich

Act more responsible to the duties and respond to requirements efficiently and faster

Business and Understanding Vietnam Now and in The Future

I haven’t experienced any business deals in Vietnam yet, but I am most worried about the changing industry regulations, the unpredictable law amendments, unfair competition, and the guarantee of quality standards.

My advice to the expats that want to do business in Vietnam is to spend as much time as possible here, but with local people. It is essential to understand the habits of the Vietnamese before starting any sort of business, in order to prevent an organizational mismatch and communication misunderstandings. It is complex and different here indeed.

I can already see that the necessary attributes required to succeed in Vietnam are patience and simple guidelines.

What I would like to learn about Vietnam or the Vietnamese is: until what extent have the ancestors shaped today’s population, and how much is the young generation willing to keep and practice the old traditions? I hope that finding this balance will help me to predict and understand their place in the world for the next decade.

This next decade will be crucial for Vietnam as the country transitions to increased trade with more global partners, the middle class continues to grow, and more foreign investment pours into the economy. Vietnam has many natural resources, a lot of talented people, and a willingness to exceed economic indicators but it will not be without some development friction, conflict between traditional and modern Vietnam, and addressing some major investor concerns. However, the long-term benefits will be far greater than what the shortcut rewards of today will provide. After all, as Jim Rohn says, “You cannot change your destination overnight, but you can change your direction overnight.”

Thanks to Zdravko Tumbovski who contributed to this week’s post.

Ongoing Events in Hong Kong

October 6, 2014/in News /by gktagroupVN

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.

Current Perspectives of Vietnam

August 25, 2014/in Culture /by gktagroupVN

History is a series of perspectives on events; the victor usually writes the final version but there is no denying that there are Chinese, French, American, and Soviet perspectives when exploring Vietnam’s past. Examining present day Vietnam is seen through the eyes of individuals—those who have come here for the first time, locals, or those who have adopted this crossroads of development and tradition as their home. No matter which category you fall into, Vietnam will definitely be a wild and crazy ride at first, filled with extreme high points and it will also leave you frustrated and bewildered at other times.

On this blog, we mostly explore cross-cultural issues, business, and recent news and events all in an attempt to better understand Vietnam, its culture, and its people. However, the Vietnam experience is not uniform–that is to say that it is different for everyone who lives, works, or travels in Vietnam. For example, imagine a 20-something year old single British male English teacher’s experience in Saigon compared to the Hanoian experience of a 30-something year old Indian wife and mother of two. Or perhaps that of a 50-year old single American businessman working for a multi-national corporation (MNC). Or a young French woman, in a long-distance relationship, who is working for a non-governmental organization (NGO) in a remote town located in central Vietnam. You get the point (and, by the way, these were all fictional but plausible examples).

Perhaps the most interesting perspective is that of the Viet Kieu (or “Vietnamese Sojourner“). Thousands of people fled Vietnam during the Second Indochina War and thousands more fled after Vietnam was reunified in 1975, resulting in millions of people creating the Vietnamese diaspora throughout primarily North America and Europe. Many Viet Kieu families left Vietnam with just the clothes on their backs and settled into a new country to call home, usually starting over again with almost nothing. Subsequently, the Vietnamese government took a hardline position on those who had fled the country and denounced them as traitors. After some years, the Vietnamese government eventually called for the Viet Kieu to come back to Vietnam to reintegrate and afforded them special property and business rights in order to help speed up Vietnam’s economic development.

The younger Viet Kieu bring an interesting perspective to Vietnam—they usually grew up in culturally Vietnamese households but were exposed to western cultures and societies–undoubtedly mashing up the best elements from east and west. A Viet Kieu’s ability to have one foot in the west and another here in the east allows him/her to integrate more easily here and to bridge the cultural gap that non-Vietnamese sometimes find difficult to overcome. However, some Viet Kieu may, over time or immediately, reveal an arrogance that local Vietnamese can sense, perhaps due to socio-economic disparities. Actually, the best combination for people who seem to understand high global standards and the local way of doing things are Vietnamese who have successfully studied abroad and have been exposed to a different lifestyle. They are able to reflect, learn, and grow in ways that only travel and living abroad allow.

Only by opening up to differing perspectives can we begin to understand the world around us and how we fit in it. So, the following is a non-exhaustive list of blogs and videos relating to life in Vietnam (from mostly an outsider’s perspective). Of course, there are also Vietnamese bloggers and video bloggers (Vbloggers). We can’t share links to them here for legal and liability reasons (and if you don’t speak Vietnamese then they may serve little use to you, especially if using Google Translate).

It’s important to note that GKTA Group Limited neither endorses nor condones the varied views expressed in the blogs below—unless expressly stated otherwise. They are listed to demonstrate that no two people will have the same Vietnam experience although there will be many similarities and overlapping challenges.

Flying The Nest

Who? An American English teacher expat in Saigon

What? A pretty raw look at living in Saigon as an English teacher and interesting experiences encountered while meeting other cultures.

Why? Because English teachers seemingly make up 80% of the expats here in Vietnam.

You should check out this post.

Why Am I Here?

Who? A British expat who has made Saigon her home with her multi-cultural family.

What? Ms. Ray mostly “ blogs about the ups and downs of writing and living in Vietnam.”

Why? Insight from someone whose first time in Vietnam was in 1996 and has a deep reservoir of global experiences.

You should check out this post.

Because We Camp

Who? A traveling, backpacking, really rad couple going by the brand, “Because We Camp.”

What? A landing in Hanoi and subsequent travel down south to Saigon via motorbike.

Why? Included because it provides an accurate portrayal of a common first impression of Vietnam and it was enjoyable to watch.

You should check out this episode.

My Seasons In Saigon

Who? A former American university president.

What? A transitional blog, where the writer shares his thoughts and juxtaposes historical themes with cultural elements.

Why? Experience in the American education system and now heads up a university in Vietnam.

You should check out this post.

World Economic Forum Blog

Who? From current Prime Minster Nguyen Tan Dung.

What? A summary of the economic state of Vietnam and some projections for the near future.

Why? Self-explanatory.

Welcome To Vietnam

Who? From an American political writer.

What? A first-time account in Hanoi and Vietnam largely through a political lens.

Why? Entertaining first impressions of being in Hanoi–looking forward to Part 2 in Saigon.

Graduate of the Year

Who? NY Times writer Nicholas Kristoff.

What? An extraordinary look at one Vietnamese girl who defied all odds to become Graduate of the Year.

Why? Recent American college graduates, here’s one face of your competition who is willing to work harder for less money than you are.

Expat Diary: Saigon

Who? A nomadic photographer.

What? One woman’s view as an expat in Saigon.

Why? A blog about living in the moment—something that can be hard when adjusting to new settings, new faces, and new conditions.

You should check out this post.

SoJournaling Vietnam

Who? A younger American Viet Kieu.

What? Straight from California and living in Saigon for at least three years, Kyle Le (or ethnic version: Ky Le Le) showcases various interesting experiences from finding a good burger to asking foreigners what their impressions are of Vietnam.

Why? He has some interesting interviews with celebrities and foreigners.

You should check out this clip.

Departures. Vietnam.

Who? An American/Canadian team ventures off in Vietnam in association with National Geographic.

What? A look at a Viet Kieu’s first time in Vietnam, traveling throughout the land, and the importance of family.

Why? Come on, it’s National Geographic.

And finally, from the perspective of a drone.

The point of this post was to communicate that everyone has something to add to the tapestry of the Vietnam experience but also that those experiences should be scrutinized (even ours) until the reader has had the chance to check out Vietnam for him/herself. There is no substitute for direct experience but short of that, the account, analysis, or opinion that you entertain should be sound, relevant, and contextual.

In the end, Vietnam is what you make of it—through the good times or the bad times or whatever experience in between. It’s not always easy to live here but after some time you will come to enjoy it and perhaps even thrive in the environment here. If not, then the alternatives always available are to go back to wherever you came from or to move on, which, in that case, there is no shame since Vietnam is not for everyone.

But while you are here, the only thing that you can directly control (and throughout life) is your attitude: toward others and toward the situation that you are in. We hope that these other current perspectives of Vietnam have allowed you to gauge how your experiences and perceptions are in line with other people. Should you wish to, please share your own experience in Vietnam below.

How to Find a Job in Asia (Vietnam)

July 27, 2014/1 Comment/in Challenges, Opportunities /by gktagroupVN

It’s great that you’re interested in working in Vietnam, but it’s time to get more specific because Vietnam has different regions, cities, and lifestyles to choose from. Finding a place where you can grow professionally and personally can be a bit tricky but it’s definitely possible–especially once you narrow down your living and working options. Expats tend to end up here in a variety of ways: some people were sent by their foreign companies, others acted as consultants to local or foreign entities, another portion decided to take an extended vacation here once they arrived, and for another segment there are clear cultural ties to the country.

If you don’t fall into any of these groups then Vietnam has piqued your interest for reasons other than having already experienced it, which can be riskier from a company’s perspective since Vietnam is not everyone’s cup of tea and some people choose to move on after briefly experiencing life here. Yes, there is something special about Vietnam that can draw people in but there are also many things which can drive a person out of the country as well. Living and working in Vietnam can be very challenging at times so if you are able to withstand it or thrive here then congratulations are in order and you should be proud of yourself because it’s not something that everyone can do.

Searching in Vietnam

Therefore, it’s best to get out here on the ground and network to show that you are committed to working in Vietnam until you find something suitable. First, you should decide which city you would like to work in based on your research about the Vietnam market; you should be able to clearly explain why you are interested in working and living in Vietnam, especially if you have never been here before or you don’t have any cultural ties to Vietnam.

A brief overview of some cities in Vietnam:

Ho Chi Minh City (Saigon, in the south): Fast-paced, more cosmopolitan, more international, more western-oriented. Great for entrepreneurs, FMCG, startups, business people, artists, marketing agencies, etc.

Hanoi (the nation’s capital, in the north): More traditional, slower pace, tighter expat community, “early to bed, early to rise mentality.” Great for NGOs, diplomatic corps, building relationships in the local government, niche opportunities, etc.

Da Nang (in the central region): Surrounded by great beaches, more laid back, cleaner, an up-and-coming city with quick growth, especially in the tech sector, and third biggest economic center, etc. Great for those who are seeking “something different” in Vietnam beyond the standard two choices above.

Of course, there are other cities to choose from in Vietnam, but the above are the usual ones that expats end up living in.

So after you have picked a city, you will need to pick a date that you will move to that city (you can get a three month visa—single or multiple entry—from your local embassy/consulate/mission or through www.vietnamvisa.com for a visa on arrival). You’ll need to start networking at least one month out from when you will arrive in the city. Make a list of the companies in your industry that are operating in your city of choice as well as positions that are available throughout the country (you have to go where the opportunities are, after all).

Resources:

LinkedIn (www.linkedin.com)
Vietnam Works (www.vietnamworks.com)
Indeed.com (www.indeed.com.vn)
Monster (www.monster.com.vn)
ITViec (www.itviec.com)

When you apply to positions found on online job boards, you can mention the date which you will arrive in your cover letter and any experience that you have in Vietnam or Asia. In terms of networking, start by connecting with people in your field: ask them to meet for a coffee once you arrive in town, or for successful advice, or what’s your industry like in Vietnam compared to other countries (maybe you both have lived in the same city elsewhere). You can also try reaching out to recruiting firms to see if they are searching for candidates with your profile—although this route is better for executives. It would also be wise to check for upcoming local tradeshows or conferences that you can participate in and adjust your flight accordingly. It would be a shame to miss an important yearly event by a day or two when you could have started your job search off strong.

Before you leave for your current destination, you should have an updated CV (the format is more detailed in Asia than in the west), an elevator pitch, and even business cards with your name, email, and mobile number (if you can get a friend to buy you a SIM card in Vietnam before arriving). If you wait until you arrive in Vietnam then try to get a 10-digit number (as opposed to a 11-digit number) with as many sixes and eights (lucky numbers) as possible. Viettel is a good choice as a network provider due to its extensive coverage throughout Vietnam in both urban and rural areas.

Landing in Vietnam

Once you arrive in town call up people to follow through on the meetings you set up before arriving in country. Go to your Chamber of Commerce meetings and events, and attend as many relevant networking events and activities as possible.

Resources:

City Net Events (www.citynetevents.com/)
Chamber of Commerce (e.g., www.eurochamvn.org/)
Meetup Groups (e.g., www.meetup.com/hanoiinenglish/)
CouchSurfing Events (e.g., www.couchsurfing.org/n/events/all-about-cs-hanoi-hanoi–2)
Sports Clubs (e.g., www.Facebook.com/hanoi.ultimate.club)

Every expat has experienced his/her first day in a new country so most are willing to help out or advise newcomers on potential pitfalls and ways to limit their liabilities here. However, not everyone will have or make time to meet you for coffee so don’t take it personally if someone doesn’t get back to you—be professional and keep good relations as much as possible since the world is a small place.

Volunteering to help organize events or to work events is also another way to make connections with people who are more familiar with the business community than you are. It also allows you to make a case for why you would be an asset to an organization. Keep in mind that to do that effectively you must research the organization that you are interested in working at. Differentiation is the name of the game here in order for your qualifications and interests to fit in with a company’s mission and culture.

Potential Barriers

Cost
Commitment
Lack of support system

Buying a one-way ticket or carving out up to three months of your life to search for a job might seem like quite the undertaking. It is, for sure, but if things don’t work out then you can always buy a return trip ticket after a three month vacation. The monthly average rent for a room here is between $165 and $300 plus around $50 in utilities (depending on room/person distribution). Depending on where you are coming from, a flight can be several hundred dollars for a one-way ticket to a couple thousand dollars or more for roundtrip tickets. Yes, it is expensive but the upside is that you will have an experience that not many people get to have: living in a new country, learning a different way of doing things, making friends from other parts of the world, making a direct impact on those around you, and learning new things about yourself. In the long run, three months is a short time to take a healthy risk that will most likely change your life for the better.

If you don’t know anyone in Vietnam and have never visited before then for sure it will be that much harder for you to network. Perhaps traveling here first is in order to see if you enjoy Vietnam as a tourist (you could do a regional tour as well to see if another place is a better fit). You can schedule some coffee meetings during this “exploratory” phase and then after doing some more primary and secondary research you can decide for yourself if Vietnam is the place for you. If you do decide to come back then you’ll have some contacts in place and will be able to expand your network accordingly.

Don’t be discouraged if it takes longer than you expected to find a job—you’re just proving that you really want to be in Vietnam and sooner or later someone will recognize and appreciate your efforts. Stay focused on the long-term and don’t try to take shortcuts here or venture into the darker side of Vietnam. In a country that is not yours, the locals will always have the upper hand as they have the language, relationship, and experience advantages. There is a high risk that you will end up on the wrong side of things if you embark in any of their schemes. That also goes for other expats you meet—Vietnam attracts different kinds of people for different reasons so use your judgment and trust your intuition in new or ambiguous situations.

Suggestions for Success

Learn the local language (you will save so much time and build relationships more quickly)
Learn the local business culture (you will be able to avoid faux pas and participate and contribute effectively and appropriately in business settings)
Learn the history (the Chinese, the French, the Japanese, and the Americans have all directly influenced Vietnam’s history at one point or another—how might that affect the Vietnamese perspective toward foreigners?)
Understand the “pulse” of the city and country (What might your city be like in a year? Or five years? What are the major ongoing infrastructure or development projects?)
Recognize opportunities and how to leverage them, and your global network (Do you see a product or service that Vietnamese consumers would want or need? Do you have a friend who has skills that would be valuable to a company in Vietnam? Make connections, both in person and for potential opportunities.)

Being based in Vietnam makes all of the above suggestions easier to implement. Even prior travel to Vietnam looks more credible when applying for jobs or talking to hiring managers. The surest way to finding a position where you can add value and grow is by finding an organization whose mission, values, and projects you are interested in. Then, you can create a strategy for getting to know people in that organization and from there the possibilities are endless. Remember, you are looking to get your foot in the door so stay focused on gaining experience and time working in Vietnam—from there you can prove your value to your organization and create your own career path in the country or region. Good luck!