Hanoi Archives - GKTA Group Ltd.

Posts

Keeping Informed About Vietnam

August 16, 2015/in Opportunities /by gktagroupVN

Back in June 2014, this blog was created with the goal to publish a post per week on a topic of interest relating to Vietnam and/or Southeast Asia.

Since then, the blog has largely focused on information, trends, and events relating to technology, business, and culture in Vietnam and Southeast Asia.

It’s been a great and challenging experience to write this blog—and it would not have been possible without countless feedback, people who were willing to sit down and explain what they saw as the potential for opportunity in the region, and finding exciting and interesting topics to cover. That meant finding people who are doing exciting things in the community—whether it is creating or building or shaping a project, company, or building.

52 posts was the original target—and this goal was reached in 13 months; this post is currently number 55. Ultimately, this blog serves as a resource: 50,000-70,000 words that have attempted to capture Vietnam (from a Hanoian perspective and with the contrast of having lived in Ho Chi Minh City) in the past year.

So what’s next?

At this point, we are looking for someone with the following profile:

-A foreigner who has been in Vietnam for 10+ years;

-Who has operated as an entrepreneur, country manager, or director of an organization that is interested in technology, startups, or trade (or complementary fields);

-Who is interested in contributing 20%-30% more content to the current selection of 54 posts (each post is 1,000+ words);

-And is open to publishing the entire body of work as a book (an editor in Boston has agreed to review the project).

Please contact info@gktagroup.com for more details.

A New Direction

Vietnam is rapidly changing; moving forward, the format of this blog is going to change as well.

Articles from other publications will be shared on the blog instead of publishing original content every week. Depending on the frequency, content will be updated every month or two.

In the meantime, it can be difficult to understand what goes on in Vietnam from a foreign perspective so below are some other resources to keep current and understand better Vietnam’s emerging role in the world in the 21st century (if even a little bit more).

General News

Communist Party of Vietnam Online Newspaper

Voice of Vietnam

Twitter

Business News

Saigon Times Weekly

Vietnam Investment Review

Vietnam Economic News

CNBC

Tech/Startup News

e27

Tech In Asia

CNET

From a Regional and International Perspective

The Diplomat

The Economist

NY Times

Additional Resources

Of course, this lit is non-exhaustive. There are many more resources to tap into. Books, blogs, podcasts, etc. (And we are also available for a quick chat or email: admin@gktagroup.com.)

Stay tuned!

Vietnam and Finland partner to build startups across Vietnam

August 9, 2015/in Opportunities /by gktagroupVN

Finland and Vietnam—what do these two countries have in common? At first glance, perhaps not much. Vietnam has a population of 90+ million and Finland’s population doesn’t even break the six million mark. Finland’s GDP per capita is almost $50,000 while Vietnam’s is approximately $2,000. And Helsinki is considered one of the most future-oriented governments in the world while Hanoi is known for its traditional elements; after all, it’s an over-1000-year-old city. So it might come as a surprise to learn that Finland’s Ministry for Foreign Affairs and Vietnam’s Ministry of Science and Technology have joined forces to foster innovation, support initiatives, and develop entrepreneurs via the Innovation Partnership Programme (IPP).

The IPP essentially supports the growth of the Vietnamese ecosystem; its role is to initiate and facilitate new activities, connections, and collaboration that can lead to the creation of sustainable ecosystem structures on the national level with regional integration and strong international linkages. Part of this effort includes a training course, an Innovation Accelerator, and events to bring the community–as well as potential partners and sponsors–into the fold.

Currently, 12 Vietnamese Innovation Champions are in the middle of a two-month “Training of Trainers” (ToT) program where they are learning lean startup methodologies, new ways to minimize risk, and how to develop ideas into products and services (and eventually sustainable businesses). Hailing from a variety of backgrounds in the public and private sectors, and with a median age of 35, these working professionals are led in sessions, workshops, and classwork by top international practitioners from startup hubs in Europe and the United States. Outside of the facilitated HATCH! space in Hanoi’s Ba Dinh District, the Innovation Champions have conducted fieldwork where they interview prospective customers, pen blog posts to share their perspectives, and connect with aspiring entrepreneurs in the community. They have already begun advising local startups in order to put what they have learned into practice—something they will continue to do in August once the training is over.

One major portion of fieldwork is the customer conversation, which drives the iterative model for a product or service that is being developed; some of the terms and tools used include “business model canvases” and “value propositions.” Entrepreneurship is a process and mindset—asking the right questions of the right people is key to developing solid products and services. But, sometimes, it needs to be taught and localized in order to become part of a local ecosystem.

Trainer Nick Norena of San Francisco is, by his own account, not only an entrepreneur but also an educator and coach, focusing his life on finding the most effective and engaging ways to teach entrepreneurship and innovation. Currently, he is focusing on Vietnam.

“Being here in Vietnam, I am eager to learn about a country and culture that is quite new to me,” said Norena. “Most importantly, I am incredibly humbled to work with the Trainees enrolled in this ToT program.

“The Trainees we work with are incredibly accomplished academics and professionals, and they bring valuable perspective to the classroom and fieldwork each week. This is crucial because one of their main goals and is to translate and adapt the materials and topics we cover to accurately fit the needs of the local startup ecosystem. I am encouraged every day by the team I’ve become a part of, and excited to see what the future of the Vietnamese startup ecosystem holds,” he said.

Innovation Champion Lan Phan, Deputy Director of NATEC–an organ of Vietnam’s Ministry of Science and Technology (MOST)–of Hanoi shares a similar excitement toward the future of the Vietnamese entrepreneurship ecosystem:

“It is great because I can learn the most updated knowledge in the startup world–the Lean startup movement,” said Phan. “And, having it taught by the experts and practitioners coming from Silicon Valley makes it even much better experience. Their sharing of real startup stories and the hands-on exercises that we have to take in class absolutely help us internalize the training principles much faster.

“Being one of the IPP trainees,” she said, “also means that I can develop a close relationship with other like-minded trainees, whose goals are not only to excel in their own careers but to give back and contribute to building this ecosystem a better place for startups to grow. Overall, I have so far been benefited greatly from this training course and would love to share my knowledge with others so that the impact of the course would be multiplied.”

The curriculum that Norena and the other trainers are developing—which is aimed at teaching academics and professionals in Vietnam the skills, techniques, and mindset required to successfully coach and mentor startups—is expected to be used in Vietnamese and perhaps even regional universities as a way to extend the impact of the first cycle of the Training of Trainers program and Innovation Accelerator. The IPP seeks to support and build the capacity of local key players in taking ownership of developing the ecosystem. Thus, this curriculum is a foundational resource for new and aspiring entrepreneurs in Vietnam and beyond.

So, what’s next? The entire program moved to Ho Chi Minh City last week (July 15) and will be based out of Hoa Sen University. Once the Training of Trainers program is completed, a six-month Innovation Accelerator led by the Innovation Champions will begin in both Hanoi and Ho Chi Minh City. The Innovation Champions will guide approximately 20 high-growth and innovative startups, as well as four system developers, to success.

The startups have an initial Demo Day on October 31 and a final Demo Day in January before the call for new startups is opened up again. Before the first Demo Day, the IPP is looking for mentors (e.g., guest speakers) to support the IPP Innovation Accelerator as well as future partners to help pilot and scale the curriculum (open source, practical, and comprehensive innovation and entrepreneurship-pioneered—which does not yet exist in Vietnam) to universities and other training organizations customized to fit the needs of their respective stakeholders.

By design, the Innovation Champions will be the foundation of the future, driving the ecosystem forward even beyond the Innovation Accelerator. Hopefully, by the time Tet (Lunar New Year) rolls around in February 2016, we will start to see some of these selected projects emerge from the Innovation Accelerator ready to expand in Vietnam, into the region, or elsewhere. Also, we can expect that next year’s ToT Part 2 will feature even closer collaboration with university and training organizational staff.

Even farther down the road, Trainer Dan Toma of Germany projects even more success as a result of the program.

“Looking at the speed of their progress [Innovation Champions], I am highly confident that they will have a huge impact in the Vietnamese ecosystem once the training [is] over,” said Toma. “I’m looking forward to having a coffee in a nice restaurant somewhere in Europe in about three or five years from now, reading about the first Vietnamese company being successful on the international market, hoping that one of the Innovation Champions helped build that story directly.”

Three to five years out is a long time but, perhaps, Dan will be proven right. After all, the best way to predict the future is by helping to create it.

A version of this article first appeared in Tech In Asia.

Google I/O Extended Hanoi

July 20, 2015/in Opportunities /by gktagroupVN

For some time, Google Developer Group Hanoi (GDG Hanoi) has been helping to build the developer community here, which is remarkable considering that they are all volunteers. This month, the first Google I/O Extended event was held in Hanoi for the local community to get a first-hand look at upcoming Google products and services.

Google I/O Extended (with the “I/O” portion meaning “Innovation in the Open”) is a way for those in Hanoi (and other cities) to deep dive into new technology that was announced during the annual Google I/O developer conference in San Francisco (which was first held in 2008).

At Extended locations, such as the one in Hanoi (and in Ho Chi Minh City the day before where approximately 400 people turned out), participants have the opportunity to code, get their hands dirty, and get to experience some of the latest technology. The conference is geared toward those who want to launch an application, or add new features to existing application.

Participants received updates on a variety of new-and-upcoming consumer-focused Google products including Google Now on Tap, Google Photos (which now has the ability to recognize, categorize, and group everyday objects such as food, landscape, etc.), Project Jacquard (which allows designers and developers to create touch sensitive surfaces in clothing thereby transforming fabric and literally integrating technology into what you wear), Google Cardboard (which your author experienced), Google Spotlight Stories (introducing augmented reality capability to smartphones), and Project Soli (which can detect sub-millimeter motions at high accuracy). However, there was no mention of Project Ara, a smartphone with modular components.

Present at the first Google I/O Extended Hanoi conference were members of Google’s Developer Relations Ecosystem Team, Partner Account Management Team, and of course, the Google Developer Community Management Team. The goal of these conferences is to help developers make successful applications and turn those applications into successful businesses— and the community is the biggest part of that drive toward success. Across the world there are 600+ GDG in 100+ countries and in the last six months 3,000+ local developers have met up at events to collaborate, share knowledge, and build skills.

Google recognizes people outside of the organization who are very knowledgeable about Google products; they call them Developer Experts. These are people who are active in community, localize content, and speak at events. At the conference, Google representatives announced that they were looking for the first Google Developer Expert to emerge from Vietnam since there aren’t any currently (but they hope to change that soon).

To become a Google Developer Expert, it requires someone technical, someone very involved in the program. A competitive candidate will have to sign an NDA in order to gain early-access to pre-release products. Some of the benefits include getting to travel to Google I/O in San Francisco and access to Google developers. Currently, there are only 120 Developer Experts worldwide so the successful Vietnamese candidate will have to be highly technically-oriented.

On the developer side of things at the conference, Google promoted a few products including Google Launchpad (which is geared toward startups), Polymer 1.0 (a web technology toolkit which brings material design to the web and offers new tool bars, menus, and offline caching), Project Brillo (bringing standardization to the Internet of Things), and Firebase (allowing everything on the backend to stay in sync using a JSON database), among others.

Also shared with the crowd of student and professional developers was that the permissions for applications on Google’s Play Store had been updated; now an application asks for permission as needed instead of during installation time which will resulting in easier application updates.

Another promoted topic was app indexing which means that in addition to web results, app results are also shown in search results. However, it requires that developers take the time to index content in their applications. Once that is done then Google can crawl and return content for applicable searches. In essence, it’s another way for users to find developers’ applications and install them–free of charge.

One of Google’s major themes is “building for the next billion users” which Vietnam is definitely part of. This initiative includes building for emerging markets by optimizing products and services for the next billion users in a country where many millions of them live. For example, offline support for YouTube videos in places where connectivity is slow or latency is high; or improving load times for search results in order to maintain a quality user experience.

During one of the workshops, the Google Design Sprint was covered where six fundamentals were shared with the audience.

1. Focus on the user—design for them;

2. Do your research—understand the product area;

3. Strive for simplicity—make sure your propsition and benefits are clear;

4. Prioritize speed—make most important actions the easiest to accomplish;

5. Never stop learning—seize every opportunity to learn; and

6. Solve big problems—create lasting value for users.

This entire Design Sprint can be completed in a week so the emphasis was on building something and learning something from it. The advice given was that if the build doesn’t work then don’t get bogged down in it (within reason) and go onto the next one. In other words dig into the problem in order to understand, diverge, decide, prototype, and validate. And then do it all over again.

There was another event that weekend, an AngelHack held in Ho Chi Minh City from July 4-5 which had about 250 registered participants. Interest, demand, and standards for these kinds of events are increasing across the board. Last year’s success with Flappy Bird was a watershed moment for the developer community and it has spurred the growth of numerous independent game developers. GDG (and Google as well) is providing the support for users of its products and services as well as developers of content in Vietnam so it will surely benefit from playing a pivotal role in building Vietnam’s innovation economy.

Jason Tien Le, an Account Partner Manager at Google shared his thoughts with us, echoing this very sentiment:

“We’re delighted to see Google I/O Extended continue to grow and connect local developers with a truly global community. We see tremendous talent in Vietnam, and we’re committed to exploring ways to support the developer community, at home and around the world.”

Right now, the market here is still in the clone stage but it’s only a matter of time before some more hits emerge out of Vietnam and splash into the region and beyond. Vietnamese developers are hungry, they have quick turnaround times, and they are talented–the hard part will be to shift from a short-term orientation to a long-term focus in order to build relationships with other communities and customer bases around the world. Perhaps it will happen even sooner than expected since developers here are quick learners.

The REMON Project

July 13, 2015/in Opportunities /by gktagroupVN

On July 2 and 3, the Final Conference of the Vietnamese-German Research Project Real Time Monitoring of Urban Transport—Solutions for Traffic Management and Urban Development in Hanoi (REMON) was held in Hanoi. During the conference, project representatives outlined their plans for going forward and listened to the concerns of the attendees, which ranged from data privacy to the methodology of the proposed actions.

Traffic in Vietnam can conjure up images of motorbikes, bicycles, buses, and luxury vehicles all vying to occupy the limited space on the road, especially in major cities. Already during rush hour, parts of Hanoi and Ho Chi Minh City are near impassable. Few experiences could be worse than being caught at a red light in Ho Chi Minh City during the rainy season, and surrounded by the drone and exhaust of a few hundred motorbikes in front and behind. (Your author has experienced this firsthand.)

And up in Hanoi, the afternoon rush hour can turn into a “Battle Royal” where buses are operated as if they were cars, cars as if they were motorbikes, and motorbikes as if there were regulations for operating a motorbike. The Vietnamese dream is to own a car—to show off success to others, to protect from the elements, and to travel comfortably.

Last year, the first Rolls-Royce Motor Cars showroom in Vietnam opened up in Hanoi. However, as we explained during coverage of the Yamaha Town Hanoi showroom, the car will never fully replace the motorbike in Vietnam, and Hanoi itself is a Motorcycle Dependent City (MDC). Still, Vietnam experiences 10% new vehicles on the road each year and congestion will only increase as more people become successful as a result of the economy. In fact, there are even events called “car washes” where an entire company will go out to celebrate the purchase of a car by one of its employees–arguably, one of the nicer effects of an increasing number of vehicles on the road, but not without short and long-term effects on the city, its people, and the environment.

So in the last three years, a team of Vietnamese and German researches has looked at this increasing traffic issue in Hanoi. The REMON Project is funded by the German Federal Ministry of Education and Research and the Ministry of Science and Technology, Vietnam and has been ongoing since May 2012 (and will run until October 2015).

According to a handout at the event, the REMON project has several key objectives:

“reduction of air pollutants and emissions;”
“reduction of energy consumption in the urban transport sector in Hanoi, Vietnam;”
“establish a real-time traffic information system in Hanoi, which helps to increase the efficiency of Hanoi’s transport system;”
reduce environmental impacts of traffic, in particular traffic jams, traffic-induced emissions and energy consumption.”

The REMON project wants to track and detect traffic conditions in real time via two methods; Floating Car Data (FCD) and Floating Phone Data (FPD) which is essentially GPS data from onboard units in vehicles but also the smartphones of the vehicle drivers as well.

The REMON project hopes to use the raw data for several applications ranging from “informing road users of the current traffic situation on each street to controlling and managing traffic as well as long-term transport and urban planning efforts and measure to solve traffic problems.”

Thus, the focus is on short-term traffic information as well as long-term transport management approaches and urban planning solutions. In other words, “the REMON project is a well-adapted, demand-oriented, collaborative research and development project between German and Vietnamese partners. It aims at establishing a traffic information system and using it for achieving an integrated urban and transport development of Hanoi.”

Ridesharing and Electric Vehicles in the Future

Uber arrived in Vietnam in June, 2014 in Ho Chi Minh City and in October in Hanoi. GrabTaxi also arrived last year in Vietnam. These services help optimize the flow of people across cities but they also have the potential to reduce future vehicles on the road considering the tough parking situation in Hanoi. For sure, once the metro comes online, it will provide a viable alternative for navigating around Hanoi (and Ho Chi Minh City).

On the other hand, electric vehicles such as bicycles, are usually associated with young people or students. At the high-end range, if Tesla Motors were to enter Vietnam it could change the perception of electric vehicles in this market. However, entering an Asian market where consumers want to have instant gratification and want to save “face” and requires developing infrastructure can be quite challenging as seen with Tesla Motors’ progress into China.

There are definitely opportunities to partner with residential and commercial developers in Vietnam to offer Powerwall (see a full Powerwall 2 review) and other devices in the portfolio that could benefit residents, customers, and others who are interested in living a high-tech, stylish, and green life. For example, establishing VIP charge/parking spots at malls, and premium parking in residential developments are some options for building a suitable brand image for Tesla Motors. Successful Vietnamese want others to acknowledge their success and want to be seen in exclusive situations so it may take some time for a mindset or attitude shift, especially from the nouveau riche, who will only increase in numbers in the future.

One thing is certain: the focus and results of the REMON project will affect all Hanoians as the impact of traffic is demonstrated in more relatable terms such as quantifiable lost productivity due to waiting in traffic (or even access to the real-time data via a mobile application as the project hopes to achieve). Along those lines, solutions for traffic challenges could emerge from a variety of areas–not only the private sector or from researchers, but also from the public via crowdsourcing campaigns. Indeed, there were many vocal and concerned commentators at the event in the audience who did not have a shortage of opinions on what should be done moving forward. In the meantime, the continued promotion of basic standards of courtesy on the roads with an emphasis on safety, utilizing signals, and respecting traffic laws can go a long way toward improving the commuting, driving, and riding experiences in cities such as Hanoi; after all, innovation and technology can help to fill in the gaps.

If you would like to know more information or would like to view the material presented then you can find it here.

The UNICEF Innovation Lab in Vietnam

July 5, 2015/in Opportunities /by gktagroupVN

Recently, we met with Brian Cotter, an Innovation Specialist with UNICEF; he explained the UNICEF Innovation Lab in Vietnam, how the tech scene is changing in Ho Chi Minh City, and how you can get involved with the nearest Innovation Lab.

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

BC: I’ll have lived in Vietnam nine years this June. I graduated from University of Wisconsin-Madison where I majored in Zoology. During my studies, I worked with the Global Lake Ecological Observatory Network (GLEON), which deploys autonomous buoys into lakes for data collection. When I was doing it, the project was just in the US but now it’s global. So I was working with technology even though I had a different major.

Then I had the opportunity to move to Vietnam so I took it. I started off teaching English, like many people and then worked in hospitality and retail. I helped open a restaurant and tried to open a series of convenience stores in Mui Ne, a coastal town. So my experience was working in small businesses before I tried to do a mobile app outsourcing company.

The entrepreneur style really attracted me and I didn’t want to be in the office all the time so I tried to participate in startups as much as I could. I liked building things and doing things. Today, I am based in Ho Chi Minh City as an Innovation Specialist with UNICEF.

How long has the UNICEF Innovation Lab been present in Vietnam? What’s the role of the UNICEF Innovation Lab here in Vietnam?

BC: We’ve been here for six months; 2015 is foundational year so we are working to determine the best approach. The Innovation Unit for UNICEF global has been around since 2007 with growth accelerating since 2009. We are an interdisciplinary team of individuals around the world tasked with identifying, prototyping, and scaling technologies and practices that strengthen UNICEF’s work. We build and scale innovations that improve children’s lives around the world.

In the UNICEF context, Innovation Labs generally have a dual imperative. Firstly they exist to support the utilization of innovative processes in the development of internal programs and the identification of opportunities for improved results through the use of emerging technologies. Secondly they exist to empower the local communities and stakeholders to develop the capacity approach complex problems and create sustainable solutions.

Our main office is in Hanoi but we have sub office in Ho Chi Minh City so I travel between both cities, depending on work. However, the Innovation Lab is initially focused in Ho Chi Minh City.

The UNICEF Innovation Lab is both a physical space and a “conceptual environment,” correct? How does that work exactly?

BC: The Lab part of the Innovation Lab means a physical space. It is our mission to participate in a community of like-minded individuals and organizations to create a better future for Vietnam through innovation. The physical space is there to embody the type of community we want to empower: equitable, sustainable, impactful. We want to improve the collaboration across different sectors of the entrepreneurship and startup community, to convene partners around social impact, and to provide opportunity to those who are traditionally left out of the conversation. In order to create this space, we must first exemplify these values by working collaboratively with different stakeholders to identify our best approach for success and continually work to improve the mission and service provided through the space.

There are about a dozen UNICEF Innovation Labs around the world, how much collaboration is there between the labs?

We have monthly calls; I can reach out to them at any time. There’s a growing regional team to support us in bringing global context to our locales. There is another Innovation Lab in Indonesia—we talk almost every day. We share documents, struggles, and bottlenecks to help support each other. The context of every country is very different but we work together to share solutions. I set up a Skype group between ASEAN innovation labs and we have bi-weekly regional calls. In terms of technology, we use the cloud for collaborative documents and we utilize collaborative project management tools such as Trello.

What are some of the challenges that the UNICEF Innovation Lab in Vietnam seeks to address?

BC: We have nine Innovation Principles so one result of a principle is that everything in the lab is open-source. In our space, technology is not the innovation—the use of that technology in a novel way is the innovation for us. We use technology as a tool to deliver results. The tech is a tool, it doesn’t have to be bleeding edge, it has to be relevant. It needs to create a competitive advantage and be scalable. We pose a simple question: “How do you use it to deliver a better result?”

Project Mwana in Zambia is an example of this, which cut down the turnaround time for testing blood for HIV by half. The traditional method involved paper and post: 30 days to send the results, 33 days to get them back. With Project Mwana, the change was in delivering test results via SMS. Thus, critical treatment can get started earlier with better results.

Looking to the horizon, UNICEF will leverage trending technologies. The Innovation Lab looks at the situation and asks, “three-to-five years down, what does the country need? What does UNICEF need?”

So Wearables is a continuing theme now as well as the “Internet of Good Things.” We are addressing emerging tech areas and applying them in the context and using current technology in novel ways. What do we need to develop today that we will need to scale in three-to-five years?

Locally, the global innovation unit has identified Vietnam as a key contributor (key regional leader) that can contribute to the emerging technology community. Vietnamese expertise in ICT can be used to impact other parts of the world, which is why Vietnam was chosen to be one of two initial innovation labs in SE Asia.

We hope to be engaged and implement here, and then export the innovations that emerge.

Is there any recent news or upcoming developments about the UNICEF Innovation Lab that you’d like to share?

We opened our Global Innovation Lab in May in New York City, which focuses on global initiatives. U-Reports is one global initiative. U-Report began as an SMS program in Uganda in 2010 as an opportunity for young people in developing countries to express their views from a basic mobile phone. Today the program, developed on RapidPro, is in 13 countries and over 650,000 people are sending or receiving SMSs every week. Over the past four years U-Reporters have:

Sent and received over 50 million messages, each one representing a voice, question or opinion.

Improved the impact of UNICEF health programmes for mothers and children

Identified or verified cholera, Ebola, and typhoid outbreaks

Successfully advocated to support the Children Act to outlaw corporal punishment in Ugandan schools

Increased the rate U-Reporters knowing their HIV/AIDS status in Zambia by one third.

Advocated for girl’s rights to education at Rio+20 conference

Fought against the practice of Female Genital Mutilation alongside multiple faiths, legally and culturally.

You’ve been in Vietnam since 2006, right? How has the tech or startup scene changed since when you first arrived here?

BC: It’s accelerating. There is more action, desire, maturity. I’ve been around developers for awhile, they used to develop for their day jobs then go home and relax. Now they are developing at home because they are passionate about their side projects. The acceptance that “it” is possible has increased so there is additional motivation to build. In terms of the official ecosystem, it’s still so early so there are opportunities to influence things at the beginning.

What do you think readers should know about the startup scene in Vietnam?

BC: It’s a bit rough around the edges. There are still significant gaps and opportunities for development. The momentum is accelerating. Before, when Saigon Hub was around, people wouldn’t pay for events. Now I see that many people are willing to pay for events. They recognize that there is better quality content available, so they pay for it. The ecosystem is maturing organically in that regard.
What should we keep an eye out for in terms of startups and innovation coming out of Vietnam?

BC: There’s a lot of really smart people in this country. If they focus energies on a startup they could make some pretty incredible things. We saw VP9 at TechFest Vietnam; that could be incredible. But he [the founder] is not unique, there are a lot of people out there who don’t know the value of their market knowledge. Vietnam is bursting with so much raw talent—and discipline to a specific expertise. But that’s all they have so there needs to be support around it.

There are tech people in hardware and academia who don’t know how to talk about or differentiate their products. If they got the support of the ecosystem—whereby if other skills to run a startup were made accessible to a broader audience, then some magic could happen. It would require other focus put on soft skills; being able to present and express ideas and then we could see some significant tech and intellectual property-based technology break out. There are a lot smart people whose inventions never see the light of day.

Also, uniquely Vietnamese styles are starting to come out. Vietnamese are being inspired by other cultures and are not just copying anymore— they are putting their own twist on things. The maturity is coming. The tech startup scene has some of that; big things are coming, not just copies.

If people want to get involved with the UNICEF Innovation Lab, how can they do that in Vietnam?

The first thing you should know is that if you walk in and say, “I want to make a difference,” then I’m not going to say no. Everyone has a part to play, from CEO on down. We have open global challenges on Wearables and Causetech.net and will be making UNICEF problems within Vietnam more visible to the tech entrepreneur community as well.

One feature would be a weekend workshop so we can recruit mostly marginalized people to train skills and create projects. The sustainable projects will be guided by mentors and eventually those projects will develop into organizations. We are basing this idea off a framework that has been used in Kosovo so it’s a “by youth for youth” component. It’s a model that has been crafted through iteration after two-to-four years of events so it’s not from scratch. This workshop will be coming in late 2015 in HCMC and hopefully we can see it in other cities in Vietnam in 2016.

In effect we are turning innovators toward UNICEF problems and are engaging marginalized youth to enable equitable access to innovation and entrepreneurship resources like accelerators and training. Everyone has the opportunity to participate as mentors, entrepreneurs, providing funding instruments, or just sharing the vision. If you simply want to follow our progress, check us out on Facebook.

Any advice for locals or foreigners who want to become entrepreneurs in Vietnam?

Just do it. You don’t learn until you launch or until you do it. If your gut tells you that you want to try then do it, listen. Figure out a way to do it without losing your job. Judge for yourself how much risk you are willing to take.

Thanks to Brian Cotter, who shared his time with us.

Knowmads Hanoi

June 14, 2015/in Opportunities /by gktagroupVN

Knowmads Hanoi began in November, 2013 as Team 1, comprised of 15 students from France, Vietnam, Bolivia, and the Netherlands. Not even two years later, the program is about to start its fourth batch of entrepreneurs on Saturday, June 20 until Sunday, August 2 (every Saturday and Sunday for seven weekends).

The program is the product of collaboration between Center for Sustainable Development Studies Vietnam (CSDS) and Knowmads Business School Amsterdam (which started in February, 2010); it asks $350 for local participants and $550 for international participants to join a team of approximately 15-20 people.

As found on the Knowmads Hanoi website:

“After 3 successful programs, we have created a community of students, staff and trainers. We know that there are many people out there who are entrepreneurial, creative, curious, brave, involved and who want to take action.”

The curriculum has a very emphasized entrepreneurial focus, even while dispelling the notion that money should be the singular focus for success. Yet, it still wants people who can make and impact so the Knowmads Hanoi program specifically seeks individuals who are:

“-Between 20-35 years old

-Curious, creative and entrepreneurial

-Brave, involved and ready to take action

-English speaking”

In some developing parts of the world, the generational gap is widening (traditional vs. modern lifestyles) so programs like Knowmads Hanoi are essential to complementing the conventional education model (not just in Vietnam but worldwide since Knowmads Hanoi has sister organizations in Berlin and Sevilla). Thus, the program helps participants tap into their inner-entrepreneur and provides them the framework to make their ideas become a reality.

Some of the benefits of joining the Knowmads Hanoi program include:

“ • Get real life experience through working on your personal projects and/or partner-project

•Broaden your international network of trainers and Knowmads alumni

•Have a clear(er) understanding of who you really are and what you are capable of.

•Have a dream or even started working on realizing one, whether it is a business, a job or a long term project.

•Have a clear(er) picture of your interest in this world and how to create your part in it.

•Have had training in and worked with topics like business design, marketing, personal development, sustainability, entrepreneurship, social innovation and creativity.”

Last month, we sat in on a Team 4 Info session where program coordinator Guus Wink, trainer Christian Sextl, and trainer Mercedes Carenzo led prospective Team 4 participants through an exercise to give them a taste of Knowmads Hanoi life.

There was also a mix of Team 3 alumni at the event who helped drive the evening during the group sessions. Speaking to your author, they shared that the Knowmads Hanoi program had been a transformative event in their lives; some had made friendships that were as important as friendships from high school and/or university.

During the exercise, the three groups had their members share with each other what they would do if money were not a consideration at all; the examples ranged from photography to videography. Afterwards, the participants went through a brainstorming session where the other members contributed ideas to help each other reach their respective goals. At the end of the information session, Guus Wink challenged each member to do one action item that same night, or by latest at 9:30 AM the following morning.

As one participant from that night shared:

“I needed to get inspired and motivated to get myself going again and that’s exactly what I got that night! Inspired by the young Vietnamese participants of the event who were really interested in each others story and dreams and were very eager to contribute to that dream in terms of suggestions, ideas and contacts. Inspired by the organisers of the event who came up with a very dynamic, creative and effective programme for Team 4. And inspired by all the opportunities which arose only by attending one information event.”

So the program builds confidence in its participants, it inspires creative thinking and promotes collaboration—all valuable skills for life in the 21st century. Guus, trainer, facilitator, and founder of Knowmads Hanoi was kind enough to answer a few of our questions about the origin of Knowmads Hanoi, and what might be in store for its future.

From the previous three Knowmads Hanoi teams, have any tech-related companies/projects emerged?

Guus Wink (GW): No tech related projects but here’s a look at some of the projects students have started.

Could you tell us more about how you first started?

GW: I tried to start a weekend program in HCM, but to be honest I didn’t have the time nor the network to make it happen. Valuable lessons learned though. After I had moved to China I received a message from a guy who works for CSDS, a local NGO in Hanoi. He had met some people from Knowmads Amsterdam at the Youth Initiative Forum (YIP) in Sweden, and they had told him about my story. So CSDS asked me if I had any plans to come to Hanoi. My girlfriend and I were looking for the next destination after China and we were up for going back to Vietnam, as we had enjoyed the country a lot.

You will be returning to the Netherlands after the conclusion of the Team 4 program, right? What will happen to Knowmads Hanoi after you leave?

GW: Yes, I will travel back to the Netherlands by train from the middle or the end of August, a few weeks after finishing Team 4. I am looking forward to being on the road and in the train for 2 months to reflect upon my time in Asia and to think about my next steps back in Europe. In the Netherlands I might work for Knowmads in Amsterdam and I am curious to see what else will come on my path. It will be related to education and/or social work, in the direction of the transition I feel the world is in.
Christian and Mercedes will be in Hanoi for another few months, and we hope someone from the Knowmads network will come to Hanoi to continue our work. In the ideal scenario, Knowmads Hanoi will continue running independent programs in Hanoi, as well as trainings at universities and organizations. In the case Knowmads Hanoi will stop, we hope our stories will be an inspiration for people in Hanoi to build their own educational programs. We are working on a short film to share our story and to inspire people in Hanoi and the rest of the world.

You’ve worked a lot with young people in Hanoi—what are some trends/themes that you have noticed?

GW: Young people in Hanoi have the keys in their pocket for a bright future. In my opinion it is all about ‘being able to respond’, taking responsibility for yourself.
Young people are challenged because of the fast changing globalizing world they live in, while dealing with expectations from the generation above them. I feel they have to take the time to decide what they think about the world they live in. What are the choices they want to make in their lives. If they are able to take this responsibility, then I think they can build great companies and organizations.

What is your proudest achievement of working with Knowmads Hanoi?

GW: Above all creating the space for almost 60 Changemakers to develop themselves personally as well as professionally. It is fantastic to see all individual learning journeys, and to see the energy and the confidence growing during the process.

Besides this starting up Knowmads Hanoi Team 1 from scratch in only 2 months, designing the program, connecting with many trainers, creating promo material, our website and events, and finally being able to start with a great team of 15 students from 4 different countries.

What will you miss the most about Vietnam?

GW: I will miss the buzzing energy. Since I moved to Vietnam I have been impressed by the energy in this country. The country is so young and everyone seems to be determined to build a better future.

Do you have any advice for people who want to set up a program and make a positive impact like you did? Any advice for locals or foreigners who want to become entrepreneurs in Vietnam?

GW: Connect and meet with as many interesting people as possible. Share ideas, co-create, and keep developing your story and your dream, and keep shouting out this story online and offline. Don’t wait for miracles to happen, work hard, and learn by doing. Above all, be real and authentic.

Thanks to Guus Wink, Christian Sextl, and Mercedes Carenzo for sharing their time with us.

TechFest Vietnam 2015

June 7, 2015/in Opportunities /by gktagroupVN

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?”

Start Tel Aviv 2015

May 31, 2015/in Opportunities /by gktagroupVN

Last year we had the Startup Israel competition in Hanoi; it’s now been rebranded to Start Tel Aviv 2015 so things are a little bit different. The Israeli Ministry of Foreign Affairs and Tel Aviv Global & Tourism are holding a competition to send one founder of the winning startup to Israel from September 6-12.

Startup extraordinaire and Indiegogo evangelist Oren Simanian was in Hanoi on May 14, 2015 to announce the program’s launch to a crowd at Hub.IT. Mr. Simian engaged the crowd, pushed the audience out of their comfort zone, and gave some actionable advice to aspiring and current entrepreneurs alike.

From a document distributed at the event:

“Start Tel Aviv is an international competition held by The Israeli Ministry of Foreign Affairs and Tel Aviv Global & Tourism. In this competition startups from 20 different countries will compete for the opportunity of a 5-day intense startup experience in Tel Aviv to learn from the ecosystem in the city. This list the fourth annual competition, formerly known as Bizcamp Tel Aviv and this is the first time Vietnam is invited to join.

Start Tel Aviv will take place during the DLD Tel Aviv Innovation Festival, and participants will have the opportunity to meet the coolest and smartest companies, techies, startups, designers, artists, scientists, investors, and cultural drivers from Israel and abroad.

The DLD Tel Aviv Innovation Festival, a global gathering of innovators and entrepreneurs from around the world, is held throughout Tel Aviv in mid-September. The Festival is comprised of a long list of events, conferences, meet-ups, mingles and gatherings, all focusing on different sides of digital, technological, social and urban innovation.

Some of the participating countries this year are Norway, UK, Germany, Spain, Finland, Italy, Korea, India, Japan, and Russia.

As a part of Start Tel Aviv 2015 as well as a continuation of the successful Startup Israel 2014, the Embassy of Israel in Vietnam in collaboration with Ministry of Science and Technology of Vietnam and Business Studies Assistance Center (BSA) will organize a startup competition to find out a winner for Start Tel Aviv 2015.

Only 01 founder member of the winning startup will go to Israel for the study tour in September 2015.

Criteria

Age of submitting founder: 25-35

Sectors: information and communications technology

Stage of startup: seed stage

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

Founder member of the startup need to be fluent in English

2. How to Apply

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

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

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

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

Deadline for submission: June 7, 2015 (only shortlisted applicants will be contacted)

*Please note that participants shall cover their own expense if they need to travel to Hanoi for the final interview.

Fore more information, please contact:

Ms. Phan Thuy Trang, Email: political@hanoi.mfa.gov.il

or visit http://embassies.gov.il/hanoi or http://facebook.com/israelinvietnam”

Mr. Simanian gave some pointed and salient advice to the crowd, and even brought some members up on stage to quiz them in front of everyone else.

Below, points have been paraphrased from Mr. Simanian’s remarks at the event:

First, be ready. Leave the door open, don’t close yourself off to opportunities. Find a way to be better, faster, and cheaper than any of your competitors. The team and team development are a priority.

Keep your pitches short, keep your description to one page. Entrepreneurs need to get best out of every interaction. Don’t waste other people’s time. The world is flat, you need to use digital connections. Be a nice annoying person—for example, when following up, add another piece of the puzzle to help people understand what you are doing. Remember, no one works for you… so use creative ways to find a connection with the person you want to reach. Make your pitch one page, get it ready, so when you get the right contact then you are ready to go.

Most things will fail—it’s part of success so find a partner and fail. Enjoy your way but focus on the what, why, and how of things. What/who are you competing with?

Adopt more branding. Look to the Israeli Army’s Unit 8200 branding or Israel’s “Startup Nation” moniker, which was established six years ago. So start a brand; create a brand to improve the start up ecosystem—establish a unique selling proposition (USP). Figure out what’s unique in Vietnam. Build a brand around something new, and create it.

Try to find an academic correlation between your product and team—it helps establish credibility. Network! Find Vietnamese outside of Vietnam and try to connect with them. If you’re missing the know-how then find someone who has it; there is a huge Vietnamese community overseas.

Build your minimum viable product (MVP) so you can meet the market when ready. Timing is crucial; don’t pull trigger too early. Find connection on social media— on Facebook or LinkedIn. The world is flat so it’s easier than ever to raise money. Israel is a beta test market with 8 million people so most products/services are targeting the US. Go outside of Vietnam. Visit a different country. You need to understand how people around the world feel, so visit new countries.

Don’t be shy—it’s called chutzpah in Hebrew. Every “no” is an opportunity for education—find out why. Don’t be afraid to fail; this is life. Even if you fail, you will have expanded your tool box and gained more confidence. So start and fail. Start; don’t talk too much about it. Approach people to make it international. Before, startups used to raise money from friends, families, and fools. Now it’s friends, family, and Facebook. Use your network and be open to feedback. Think what is next. Think what you will be if you do well–and then do it.

Start with a feature killer. Don’t get distracted, but be flexible. Build it and ship it.

The Takeaway

Mr. Simanian had a great quote during his presentation: “Stop reading, put down the book, and do something.” We’d like to add, “and if you fail then try again.”

Thanks to Oren Simanian and the Israeli Embassy in Hanoi for their support of the startup community in Vietnam. If you’d like to know more about Oren Simanian then you can find his TED Talk here.

Building Vietnam’s Innovation Economy

May 24, 2015/in Challenges, Opportunities /by gktagroupVN

On May 12, 2015, representatives from Google, Uber, 21st Century Fox, Cisco Systems and other multi-national corporations (MNCs) came together to discuss digital trade and cross-border data flows in Vietnam’s capital city of Hanoi. The event was organized by the American Chamber of Commerce Vietnam, the Vietnam Chamber of Commerce and Industry (VCCI), and the US Chamber of Commerce. Of course, the Trans-Pacific Partnership (TPP) was front and center throughout the daylong event but there were also a series of interesting topics throughout the panel sessions, some of which were named “Building Blocks for Innovation” and “Best Practices for Promoting the Economy and Protecting Consumers.” During these panels, company representatives spoke about attitudes and policies toward operating in Vietnam.

For example, Google’s Country Lead for Public Policy and Government Affairs, Alex Long, shared some insight into the Vietnamese market: there is 300% more language learning content that is consumed on YouTube in Vietnam compared to the average rate globally, showing the strong desire that Vietnamese have for Google’s services. Google has 13 data centers around the world including one in nearby Singapore. Thus, its interests are global so Google seeks to maintain a virtuous cycle where there is more demand for online services, more innovation in online services, more investment in online services, and therefore more online services in general. (In short, Google loves content–both in terms of volume and quality.)

On a local level, activating this “virtuous cycle” can work in a few ways:

Policy advocacy (through events and working with public sector partners)
Pilots—increasing access (Project Loon, for example.)
Peering/caching (allowing locally and regularly-accessed content to be consumed more efficiently)

However, sometimes basic training needs to be put in place to get users to the point where they can use digital tools effectively. So in 2014 Google worked with organizations like Vietnam E-commerce and Information Technology Agency (VECITA) and VCCI to conduct trainings for 500 small businesses in Vietnam. Ultimately, the goal is to get Vietnamese companies to expand abroad so digital marketing is a way for Vietnamese companies to do that without setting up an overseas office. For example, one tool that Vietnamese companies can use is Google’s Global Market Finder.

One example of a Vietnamese company that went beyond Vietnam (and was present at the event) is Topica Edtech Group, which was founded in 2007 and is now operating in three countries: The Philippines and Thailand (besides Vietnam). The company will launch into the Indonesian market in September 2015 and will be exploring cloud computing solutions within the next six months. Nguyen Khoi, a product director at the company revealed that the first step for Topica was to train people how to use computers even before educating them through their service–again highlighting the need for basic training. Mr. Khoi also shared that he thought the perception of online education in Vietnam was changing and thus Topica Edtech Group may be one of the first in a new wave of Vietnamese startups to expand abroad as a result of positive interest in the field.

At the other end of the company spectrum, Uber Vietnam’s General Manager, Dang Viet Dung had some great advice for startup teams: “Make sure your product is kicking ass.”

He told the audience to “focus on your product first” and ask some basic questions:

Is it good?
Is it intuitive (especially for B2C)

“Often entrepreneurs believe that they need funding—no, get the product right.”

Mr. Dung said to focus on the following steps on the way to success:

Invest in a product
Find a mentor—open up your network, have allies

Mr. Dung also shared information about the recent cable breaks in Vietnam: Normally, the ETA in Hanoi is four minutes and 12 seconds. That means that the time from when a user orders an Uber vehicle to when it pulls up in front of him/her is, on average, four minutes and twelve seconds.

However, the ETA delta goes up during cable breaks which results in the Uber user experience being diluted. Mr. Dung also shared that Uber has had more than 25,000 failed credit card sign ups in Vietnam—the highest in Southeast Asia. Commenting further on recent reports about controversial Uber activities in Ho Chi Minh City, Mr. Dung said the incidents in Ho Chi Minh City related to “paper versus digital” contractual misunderstanding. Mr. Dung also pointed out that Uber is pioneering transparency since all payments are digital so they can be tracked; so instead of skirting tax responsibilities, as some have suggested, Uber is actually helping to increase the tax base.

So, according to Mr. Dung, Uber:

Allows governments to trace transactions
Allows the tax base to get bigger

In relation to Uber, Vietnam will continue to be a growing market and Uber will continue to make the service more affordable. However, the service will stay cash-free so as to not dilute the customer experience. [Update 08/2015: Uber will now be accepting cash payments by end of the year.] Uber is currently available in over 310 cities in 60 countries in the world but when Dung joined Uber in September 2014, Uber was in “just” 180 cities and 32 countries. For Mr. Dung, Uber introduces dynamic quality, feedback, safety—all while optimizing supply (vehicles) and demand (riders). He pointed to the average utilization rate of a private car, 5%; for a taxi, 25%; but for an Uber car it can be between 60% and 80%. Thus, Uber helps reduce traffic, an issue in Hanoi and other cities.

During Mr. Dung’s panel, he said that Vietnam has “one of the biggest startup scenes in Southeast Asia.” There certainly has been a lot of interest in startups in Vietnam since late 2013, from both the private and public sectors. Phan Hong Quat, Director General of the National Agency for Technology Entrepreneurship and Commercialization Development (NATEC), under the Ministry of Science and Technology (MOST), spoke a bit about the origin and mission of NATEC, which was formed four years ago.

NATEC is supporting SME in difficult fields and is working to simplify the process for investment certificate with the Ministry of Home Affairs. The challenge that NATEC is finding a solution to is how to encourage investors to come in and support the developing industry; one initiative that the MOST pioneered is Vietnam Silicon Valley (VSB).

Modeled after Y-Combinator (YC), a seed fund in the US, VSB seeks to replicate a model that is accepted and successful in the US. VSB provides seed money to startups in exchange for up to 10% equity. Last October VSB had its inaugural Demo Day. Through its network of mentors, it seeks to help to close the gap in the startup communities in Ho Chi Minh City, Hanoi and growing scene in Danang–especially for outsourcing companies which rely on reliable and open technologies.

[NATEC was the main organizer for TechFest Vietnam, a three-day festival which was held last weekend from May 15 to May 17; the main purpose of the event was to foster international connections for startups in Vietnam. We’ll be doing a follow up to the event soon.]

On the topic of reliable and open technologies, MasterCard’s Indochina Chief Representative and Vietnam Country Manager, Arn Vogel, stated that technology allows better customer service—whether it’s e-commerce or payment facilitation and Vietnamese companies need to be able to talk to the world, especially in order to verify payments. In terms of payments, we are transitioning from 16 digits to tokenization—and verification is crucial; a company can only do that if the transaction is on its network or has access to it. Mobile payments are on the way in Vietnam; there are 130 mobile phone subscribers per 100 people and the internet is ubiquitous. However, facing different data protection laws, MasterCard and others can’t offer hosted services–which affects consumers because they can’t use their credit cards. Mr. Vogel stated that there are about 20 payment facilitators operating in Vietnam and they can all play a role to work together to change the payments landscape.

Overall, one of the key takeaways of the event was that digital tools are not just for information technology (IT) companies but for all potential fields, i.e., all successful businesses use the internet. Cross-border data flows are not just important for IT access but are necessary to use the best technology available. A major point driven by more than one speaker during the event was that the “Digital Economy” is actually the general economy and that any attempts to restrict the flow of data would impede the flow of trade as well.

Adam Schlosser, Director of U.S. Chamber of Commerce, stated that the TPP helps companies of all sizes but Vietnam stands to gain the most out of the trade agreement. According to some estimates, as Mr. Schlosser stated, it could provide the Vietnamese economy a $46 billion boost by 2025. It would also favorably affect tariffs, market caps, and digital products and services to help facilitate free trade across borders. Jack Lambert, Economic Officer at the US Embassy in Hanoi, reiterated that with the TPP, the biggest opportunities of growth and jobs are for Vietnamese SME but they can’t compete unless they have access to the world and data.

During opening remarks, Vice-Chair of the American Chamber of Commerce, Virginia Foote, noted that the digital economy and global transformation is well underway. And more than a few speakers touched upon how Information and Communications Technology (ICT) has driven the Vietnamese economy in the last 20 years and will continue to have a greater effect in the next 20 years. And nations like South Korea, Israel, Sweden, and others can help to show Vietnam new models and tools in order to create its own digital economy with its own “Vietnamese” style. (One of Vietnam’s strengths is that it has a young population that loves working with technology, so it should be leveraged.)

Above all, the event provided key insight into how multi-national corporations and other entities in the public sector view the future in Vietnam. Throughout Vietnam, there are more than 16,000 foreign companies operating across a variety of industries. Through collaboration, local and international partners in Vietnam can work together to create an ecosystem innovation can flourish; one that is full of promising and fast-growing companies or in other words, building Vietnam’s innovation economy.

Note: If you’d like to know more information about the event, including key leadership opinions stated at the event, then sign up for our newsletter.

Forty Years Later

May 3, 2015/in Challenges, Culture, Opportunities /by gktagroupVN

This week we are at the end of a six-day holiday: Hung Vuong Day (Hung Vuong, i.e., “Hung King” is to celebrate the history and lineage of Vietnamese kings.) on April 28; Reunification Day (also called Victory Day or Liberation Day in Vietnam) on April 30; and International Worker’s Day on May 1, also known as “May Day.” It’s the first big holiday break since the Tet holiday (Lunar New Year, a nine-day holiday) back in February. (Originally, the current holiday vacation was requested to be eight days, but only six days were granted.) Signage proclaiming and celebrating these three special days are all over Hanoi, citizens have their flags out in front of their homes, and nationalist songs are broadcast on public address systems in the streets. During significant year anniversaries (30th, 35th, 40th, etc.) parades are held in Ho Chi Minh City to celebrate the north “releasing” the south and the veterans that led the way.

In general, the atmosphere in Vietnam is quieter between Christmas and the Lunar New Year (one-to-two months). Things pick up between the Lunar New Year and this current holiday, but slow down again as we enter this break—in effect, another “reset.” The last day before the holiday, April 27, was the deadline to push through agreements before the exodus to places like Ha Long Bay, Co To, and Cat Ba islands.

As with Tet, many workers return to their home provinces and the streets in major cities become a bit quieter with less traffic (and less honking but not less dangerous, unfortunately). However, some work still goes on: directly and anecdotally, some construction workers on residential projects, service workers in cafes and bars, and factory workers in Bac Ninh all maintained their posts. The next big holiday is in September when Vietnam celebrates its Independence day on September 2. Thus, there are four solid months where business can proceed, unimpeded by long stretches of holiday. At the same time, Ho Chi Minh City’s rainy season begins, which can slow down travel around town due to flooding, and the weather in Hanoi heats up considerably (also slowing down the pace of things) since the city experiences proper seasons without snow.

This year is the 40th anniversary of Reunification Day, when North Vietnamese forces (NVA) captured Saigon and the Second Indochina War ended. In the US, April 30, 1975 is largely viewed as the final day of a tragic chapter in American foreign policy in Vietnam. For the more than one million Viet-Kieu (and their children) in the US, every April brings renewed memories of hardship, sacrifice, loss—and perseverance in a new land. There is no doubt that the war was a dark period for relations between the two governments at great expense of its peoples, some of which continues today. However, more than 40 years after Operation Frequent Wind, Vietnamese attitudes toward the US and capitalism may raise a few eyebrows.

New Attitudes

According to Pew Research, 76% of Vietnamese expressed a favorable opinion of the US during a 2014 poll. Almost nine-in-ten young people (as well as more educated people) were fond of the US. Of those who lived through the Second Indochina War (the Vietnam War as it is called in the US), six-in-ten over the age of 50 held a favorable view of the US. Perhaps the most surprising figure from the poll was that 95% of Vietnamese respondents believe “that people are better off in a free market economy, even if some people are rich and some are poor.” That’s not a typo; ninety-five percent of Vietnamese believe that people are better off in a free market economy (perhaps because the poll respondents picture themselves as the rich ones).

In fact, it’s not uncommon to hear from successful Vietnamese (with direct or close relations to VVIPs) that “making money is not bad… as long as you don’t hurt anybody.” Now, for those who have not spent much time in Vietnam, it may be surprising that there are so many “pro-American” attitudes in a one-party state, especially in the capital.

But spend some time working with Saigonese and doing business with Hanoians and the Pew Research results aren’t that hard to believe at all. For one, Vietnamese love and voraciously consume American culture. Furious 7, Avengers: Age of Ultron, Jurassic World, and Terminator Genisys are all films that have been screened or will be screened in Vietnam. Along with KPOP, Vietnamese youth listen to a variety of American music artists such as Taylor Swift, Bruno Mars, Maroon 5, and Katy Perry. American flag backpacks (as a fashion statement) are an occasional sight in the streets of Ho Chi Minh City (formerly and still known as Saigon). Last autumn in Hanoi there was even a American-style prom organized and American-style wedding requests aren’t that uncommon. (In fact there is even an American ordained minister who has performed a ceremonial wedding in Hanoi.)

In terms of American products, the Apple iPhone 6 is perhaps the most desired phone in Vietnam. Getting a gold iPhone 6 Plus is even better. Workers will spend two, three, or more months of their salaries just to have it and show off that they are able to afford one. Silicon Valley is the envy of many Vietnamese entrepreneurs in the tech industry. Even the Ministry of Science and Technology (MOST) initiated a Vietnam Silicon Valley program in 2013. And later this month the National Agency for Technology Entrepreneurship and Commercialization Development (NATEC), a division of MOST, is the main organizer for TechFest Vietnam, a three-day festival which will be held from May 15-17 at Vietnam National University in Hanoi.

And if you were to directly engage and question Vietnamese about the American War (as they know/learn about it), they would most likely respond with “No problem, it was not me and you who were fighting each other.” With two-thirds of Vietnam’s 90 million population being under the age of 30, that is not a surprising response at all. Other Vietnamese have described the US to your author as a “big and strong country,” a “rich country,” and even as “number one” in casual discussions over beer or coffee. (Of course, there are ideologues and “politically correct” apparatchiks to encounter as well.)

One Direction

But it’s not just people-to-people ties that are being forged; there are ever-growing official ties between the two countries as well. Coincidentally, this year is also the 20th anniversary of normal relations between the US and Vietnam. Looking forward, the US intends to be Vietnams’s largest trading partner (having traded $35 billion in total goods last year, the US is already Vietnam’s largest export market), and the TPP will only reinforce the relationship between the two countries even more. However, the intertwined paths of these two countries started long ago, and came to a salient point shortly after the end of the Second World War.

Thirty years before the Fall of Saigon in 1975, Ho Chi Minh stood in Ba Dinh square in Hanoi and read the Declaration of Independence of the Democratic Republic of Vietnam; it contained a familiar passage: “All men are created equal. They are endowed by their Creator with certain inalienable rights, among these are Life, Liberty, and the pursuit of Happiness.” “Uncle Ho,” as he also known, has another particularly famous saying that Americans might identify with: “Nothing is more precious than Independence and Liberty.” The American Founding Fathers would almost certainly agree with that sentiment.

Forty years later, Vietnam has transitioned from a war-torn economy to a manufacturing center and serves as an integral part of the global supply chain. Beginning with Doi Moi (“Renovation”) in 1986, the Vietnamese economy has become increasingly integrated with the world economy. There have been and will be other significant milestones as well: the US embargo against Vietnam ended in 1994, Vietnam ascended into the WTO in 2007, the TPP will most likely be implemented this year, and by 2018 all tariffs will be reduced to zero as part of ASEAN integration in the region–not to mention a host of other trade promotion vehicles that Vietnam is involved in at various stages. To some, the changes in Vietnam since 40 or even 20 years ago may be surprising, but as someone who heads a department in a ministry recently stated, “the world is changing so we too must change with the world.”