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TechFest Vietnam 2015

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From May 15-17, history was made when the first TechFest Vietnam was held in Vietnam’s capital city of Hanoi.

According to TechFest Vietnam 2015 website:

“TECHFEST is an all-encompassing platform for All-Things-Tech.

From being the entrepreneurs building the next big thing, to innovators of cool gadgets looking to launch. From purveyors of cutting edge digital tools to latest digital entertainment platforms, we have it all. It’s a celebration of the 21st century; where technology meets lifestyle.

TECHFEST is a celebration of the Next-Generation innovators and their communities. This is a platform to build and foster great ideas and talents, gather thought leaders, stage for the next trend, better yet, be the trend-setter, where innovation begins.

TECHFEST is the platform where strong network and lasting collaborations begins between ASEAN and the world.

TECHFEST is the national festival for innovators, entrepreneurs, angel and institutional investors, supporting agencies and communities, technology experts, consumers and the tech media. With the selection and gathering of the most potential entrepreneurs as well as experts and investors with the rich and diverse experiences, NATEC and its partners are confident to bring about an informative, innovative and extremely practical event for the startup ecosystem in Vietnam.

The inaugural TECHFEST will be held this year and will be recognized as an integral activity within the Science and Technology Week, an annual national ceremonial week prior to the Science & Technology Day on May 18th, in celebration of S&T activities in Vietnam.”

Room to Grow

Entrepreneurs, investors, innovators, and tech enthusiasts all gathered at Vietnam National University over three days to hear a variety of keynote speakers and panelists share their thoughts about funding, challenges to starting up, and building the ecosystem in Vietnam.

Three weeks later, we spoke to some startups, investors, and attendees to get their feedback on the inaugural event and see what impressions remained. Taken by itself, the event was a success—simply because it hadn’t been done before. [Note: your author helped to organize the event.] Overall, it was great; exactly what was needed to boost the community, build momentum, and to showcase the talent and innovation in Hanoi and in Vietnam.

There was consistent and positive feedback from investors in the region:

“I want to invest in Vietnam.”

“I don’t know much about Vietnam.”

“I want to learn more about Vietnam.”

“I’m concerned about investing in Vietnam.”

However, in terms of feedback from startups, it was a mixed bag. Many complained that the start up booths were outside in the sweltering heat—under a tent, no less. Then on the second day the entire startup section was moved indoors, which made those who had invested in their booths upset over the last-minute logistical changes.

One startup in particular commented that there was no official delegation to take the VIPs through to meet the startups in the exhibition area. A co-founder from the same team commented that he wished there had been more startups present; by his count there were about 14 startups which were exhibited.

Moreover, some out-of-town guests were surprised that the translation of services during major portions of the event were only from English-to-Vietnamese but not the reverse. Almost all of the investors spoke English but the VIP section in front row (ministers and other honorable guests) spoke Vietnamese so some startups pitched in Vietnamese with an English pitch deck shown behind them. Still, it was unclear if their respective target markets were at the event or if the presenters made lasting impressions on the front row audience.

(It’s important to note that once Vietnamese startups go beyond Vietnam they will have to pitch in English as it is the language of doing business around the world.)

As the event unfolded, certain workshops were entirely in Vietnamese and from the program guide it was not clear if a session or workshop would be in English or Vietnamese. The opening ceremony on the first day was full of young people but it did not seem like the students on campus took advantage of access to the event on other days.

In the future, it would be nice to have the festival portion at night on campus in the form of a concert. Thus, startups could play their promotional videos in between sets of musical acts. Sunday was the definitely the most relaxed day—it seemed like the event sort of tapered off so a closing ceremony would be good to unveil some major news or exploring the option to shorten the event to two days might be best way to start and finish the event strongly. Along those lines, perhaps a change of venue, with more accommodating facilities, would be apt for the next TechFest Vietnam. Foreign Trade University could be a viable option—or any rotational system to showcase the various universities in Vietnam.

Still, the event was a resounding success; ecosystem building, forging regional connections, and talent exposure are all steps along the path to greatness for startups in Vietnam. In some ways, it might surprise some outsiders that the event happened in Hanoi instead of another city in Vietnam. For one, Ho Chi Minh City is the economic capital of Vietnam; there are financial services companies, venture capitalists, marketing agencies, and the city itself has a greater entrepreneurial feel. On the other hand, Hanoi is the political and cultural capital—but it also positioning itself as the startup capital—something that might not surprise those who have spent considerable time in both cities. Even so, startups, as well as institutional and angel investors from Ho Chi Minh City did participate in the first TechFest Vietnam.

What’s next for TechFest Vietnam and the scene?

Overall, it would be great to see more entrepreneurs ad more product developers come to Vietnam and team up with local developers to develop products and services. Then the Vietnamese development team could leverage newfound skills, experience, and network to develop their own products and services.

Lately, things have been picking up here and even more exciting milestones are on the horizon. However, there is a clear need for additional information—the lack of coverage in the Vietnamese tech scene is startling, especially with multi-polar cities such as Hanoi, Ho Chi Minh City, and Danang. The under-reporting in Vietnam could be an obstacle to newcomers who wish to join the growing community but with drive, commitment, and investment in the right activities, all of those obstacles can be overcome.

As for TechFest Vietnam, the bottom line is that startups here are getting them ready to scale beyond Vietnam; the startup community in Hanoi sent a clear message to the outside world:

“This is what we have done.

This what we are doing.

This is what we are going to do—do you want to join us?”

The Innovation Partnership Program

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Can innovation and entrepreneurship be taught? Does Vietnam have the ability to produce innovative and high growth companies to take on global markets? Are there people here who have the time, talent, and commitment to make an impact in the Vietnamese ecosystem?

The governments, donors, and people behind the Innovation Partnership Program (IPP) certainly believe so and with good reason.

Well, what is the IPP?

According to the IPP website:

“Innovation Partnership Program (IPP) is an Official Development Assistance (ODA) program financed jointly by the Governments of Vietnam and Finland. IPP is in its second phase running through 2014-2018.

Working closely with key national and international partners the program aims to scale up innovation training in Vietnam and improve support mechanisms for new innovative companies targeting international markets. Besides providing seed funding and connections for the best teams in Vietnam, IPP builds the capacity of public and private stakeholders through entrepreneurship and innovation training programs.”

The IPP focuses on three different but related areas: developing people, developing companies, and developing the ecosystem.

The Fellowship Program will develop future business leaders and entrepreneurs in Vietnam who will then lead the Fast Track training for the New Innovative Companies.

The New Innovative Companies component will help high growth Vietnamese companies bring a product or service to the global marketplace via Fast Track training and expense reimbursement.

And finally, the IPP will work with Innovation System Development Teams by providing funding for organizations that will raise standards, develop new resources, and positively impact the entrepreneur ecosystem in Vietnam.

In short:

“IPP supports Vietnam’s overall goal of becoming an industrialized middle-income knowledge economy by the year 2020. The program objective is to boost sustainable economic growth in Vietnam through the increased production and export of innovative products and services.”

One can think of the IPP as a pilot program, leading the way for other actors in the local ecosystem to continue on and influence the course of Vietnam’s entrepreneur development from a global perspective. The IPP is currently in its second phase; the conceptual portion started in September and the implementation phase has been ongoing since December. The Fellowship program is scheduled to begin around April, 2015.

The Innovation Fellowship Program

The Fellowship Program will consist of 20 fellows who will be trained by top international and local talent. The fellows will focus on innovation entrepreneurship, and once trained (over the course of two months), they will lead the Fast Track Training (six months) for selected new innovative companies. Trainers from Silicon Valley and other startup communities will come to Vietnam and work with the 20 motivated young people.

In addition to the fellowship requirements, the fellows will be selected on the basis of two primary criteria:

  1. Can they learn how to be entrepreneurs and innovators?
  2. Can they take best practices from the fellowship program and teach others?

In other words, do they have the capacity and attitude to make an impact after graduating from the fellowship program?

The fellowship requires a 40 hour per week commitment and will consist of some classroom and about 80% field work. Fellows will spend most of their time figuring out what customers need and how to find/create value in fulfilling those needs. Each week, the fellows will cover a new framework and ultimately practice and reinforce the learned concepts by the end of the week. The fellows will each receive a $1,000 allowance per month for duration of the fellowship program; the goal is to focus and train a core group of people to have all the tools necessary to create successful companies in Vietnam.

The IPP is currently seeking two local trainers who, if selected, will receive two weeks of training at Stanford University in the US, in addition to a highly competitive salary for the two months of training.

New Innovative Companies

Innovation, high growth, global; these are the words used to describe the kind of companies that the IPP is looking to fund, and eventually, is looking to see created here on a consistent basis.

The New Innovative Companies to be selected will be held to milestones and operational requirements for the duration of the program. The IPP will restrict what funding is used for (which is intended to be used on salaries and training related to development) and will cover only up to 70% of total expenses incurred by the new innovative companies. If people within the new innovative company are being paid, or external consultants are used, then the fees and services must be directly related to business activities. Thus, the new innovative companies will need to show accounting records, show payroll stubs, and show that a bank transfer took place or that the fees were paid out accordingly.

Once new innovative companies are selected, they will be injected into the six-month Fast Track Program (led by the Innovation Fellows) which will culminate in a demo day with the hope that 20 or so investors will be present and ready to look at each new innovative company for potential investment. The IPP does not to take any equity share in exchange for funding (because ODA requires it). Also, there will be no corporate governance oversight by the IPP for the new innovative companies. However, the IPP will have the power to remove teams, whether it’s because of a violation or if it’s clear that a new innovative company won’t be ready to present a compelling final pitch when the fast track training is completed in December 2015 or January 2016.

Innovative System Development Team

Local or international companies that want to be involved in Vietnam’s entrepreneurship ecosystem transformation can opt to form a consortium and submit their plans for developing specific new parts or for enhancing existing parts.

According to the IPP website:

“IPP’s grants are for covering 70% of internal and external human resource costs related to the innovation project. The first phase grant is approx. €50,000 [approximately 1.2 billion VND]. The most successful teams can receive an additional grant of maximum €200,000 [approximately 4.8 billion VND].

The potential content of the projects may include, but are not limited to, development of a new incubator, creation of new services for existing incubators, planning of a new funding program in the province, adding startup services to existing technology park or initiating a regional cluster growth program.”

To that end, expansion and funding activities, and, most importantly, imagination will be critical to finding new ways to leverage the funding to provide new resources to aspiring and dedicated Vietnamese entrepreneurs.

What’s Ahead for the IPP

February 23 is the deadline to apply for the Fellowship Program, but there is no set deadline to submit an Expression of Interest for the New Innovative Company and Innovation System Developers portions. In the longterm, IPP seeks to train individual people—not just companies. The real value of IPP is in developing people–the human talent–and getting them to share their newfound knowledge with others. Building teams takes time, and even longer to reach the point of creating high-growth companies so things won’t change here overnight, but the program is a great opportunity to head in the right direction.

One huge part of the challenge ahead for all those involved with the IPP is creating a proper technical vocabulary in Vietnamese, and in the long term, a cultural shift for attitudes toward entrepreneurship and innovation within the training programs. While the IPP has a fund amount of approximately $10 million—and it will certainly go further in Vietnam than elsewhere in the west—it will be the people on the ground, in the training sessions, and taking risks to create something great who will show the world just what’s possible in Vietnam.

Being an Expat

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We’re a bit late with the post this week as we spent last week in Saigon. What a change it’s been since last year: massive construction on Nguyen Hue, new buildings, and new faces as some familiar ones have moved on. Saigon is definitely a city in flux–the growing pains are evident trying to navigate around District 1 or District 2–and it seems like it will be that way for awhile as the metro takes shape.

Anecdotally, if an expat in Vietnam makes it to two years in Vietnam then s/he either stays for the long haul or heads to a different place. Thus, there is a staggered mass exodus every two years—which means that the expat community that is present today was largely not around five or more years ago.

In many ways, being an expat in Vietnam is about survival: who can outlast, adapt, and add value in ways that locals and foreign companies will appreciate and are willing to pay for. At the same time, the decision to invest more into Vietnam can be difficult (especially for expat entrepreneurs). Another way to look at it is how integrated should one be in Vietnamese society?

While there are benefits (business rights, visa, and so on) that come with a local spouse anywhere, whatever costs savings by living in a developing nation are wiped out if one is sending his/her child to a quality private school. So there are other considerations for entrepreneurs attempting to integrate into Vietnam beyond learning Vietnamese and moving into a fringe/edge business—especially for older expats. Indeed, it can be hard to change over from a lifestyle business to a scalable business model.

Finding the right balance in Vietnam can be challenging for many people. For example, there is the uninhibited nightlife in Saigon, and there are the midnight curfews in Hanoi. Business meetings can last from two to three hours and even longer if the booze is flowing and the bonds are strengthening. Where does the line for business and personal relationships end? Sometimes, it can be hard to distinguish whether it’s a friend or a business associate who is picking up the check–and sometimes it’s both.

There is a small town feel here—less so than Vientiane or Phnom Penh—but it’s not uncommon to run into the same circle of people in various establishments or at least to meet people who know the same ones that you do. For expats who want to be successful here and in Southeast Asia, Vietnam should be a long term plan. There is no doubt that Saigon, Da Nang (Hoi An included) and Hanoi attract different kinds of expats. But too often, a segment of expats seem to fall into a cycle of complacency, vices, and distractions. Out of those three cities, it’s perhaps easiest to lose a sense of self in the sprawling metropolis of Saigon; the loneliness of being an expat can contribute to a less-than-healthy lifestyle as well.

For certain, mistakes will be made both in business and social settings in a new environment and setting—no one is perfect. The key is to learn from mistakes and to not repeat them again. Even when some people have reached their wits end after being here for years, other opportunities have popped up which have compelled them to stay—but it’s only because they’ve tried and failed previously that they were noticed–and had the reputation to be suitable for a new project. But what drives people to “leave Vietnam for a third time?” Or to stay in Vietnam for years and never learn the language beyond a basic level?

The real opportunity here is to create and shape markets. Vietnam is still in “tree growing” mode. Sure, one day there will be a harvest—but it takes time, money, and other resources to educate consumers, stakeholders, and to build/create a marketplace. To that end, Vietnam needs more entrepreneurial talent, more STEM (Science, Technology, Engineering, Mathematics) talent that knows what it takes to bring a product to the global market, and more people who are interested in Vietnam from a cultural point of view instead of a bia hoi/bia om focus. But, how to attract such talent?

For starters, lower the risk of coming to Vietnam and doing business here (corporate governance), lower the barriers to raising capital here for startups (beyond incorporating in Singapore and keeping a local team here), and promote finding ways to leverage local talent to create products and services that can be differentiated.

Another major pitfall for expats is to adopt local ways of thinking and doing things. It’s very easy to complain and to succumb to some of the craziness that permeates interactions in the workplace and beyond. Staying rooted, being patient, and remaining steadfast during negotiations are valuable qualities to have ample supplies of. However, also knowing when to quit due to wasting time, the expectation of charity, or unprofessional expat or local counterparts can save many headaches for everyone involved. It’s definitely easier said than done and is a skill that takes time to develop.

Above all, expats should find that their tolerance for healthy and smart risks will have increased after living/working in Asia. Whether it’s riding a motorbike to/from work in the middle of crazy traffic patterns, or dating someone from another culture, or seizing a new opportunity, each experience will help shape confidence and character in future situations.

Living and working in a new country is a risk itself—why stop there? Vietnam is not perfect—no country is. But finding the good in situations and people is more of the result of attitude instead of focusing on all the current problems. Part of the trouble is that the more things change, the more they stay the same—especially here, just with fewer expats that you know. In that sense, finding what’s right about Vietnam can be harder than usual. If you’re in a city that you don’t like, then move somewhere else. If you’ve tried a few cities and still aren’t happy then move to another country. This place isn’t for everyone and staying true to oneself and being ethical/moral seems to be a challenge for many, including westerners. Nothing worthwhile is easy.

For those that stay in this part of the world, have a strong sense of self, and see opportunities, “if a whole country is blind and you have one eye, then you can be king.”

 

How to Find a Job in Asia (Vietnam)

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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:

  1. LinkedIn (www.linkedin.com)
  2. Vietnam Works (www.vietnamworks.com)
  3. Indeed.com (www.indeed.com.vn)
  4. Monster (www.monster.com.vn)
  5. 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:

  1. City Net Events (www.citynetevents.com/)
  2. Chamber of Commerce (e.g., www.eurochamvn.org/)
  3. Meetup Groups (e.g., www.meetup.com/hanoiinenglish/)
  4. CouchSurfing Events (e.g., www.couchsurfing.org/n/events/all-about-cs-hanoi-hanoi–2)
  5. 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

  1. Cost
  2. Commitment
  3. 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

  1. Learn the local language (you will save so much time and build relationships more quickly)
  2. Learn the local business culture (you will be able to avoid faux pas and participate and contribute effectively and appropriately in business settings)
  3. 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?)
  4. 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?)
  5. 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!