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The Changing Face of the Auto Market

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On August 27, 2014 the first Rolls-Royce Motor Cars showroom opened up in Hanoi, the capital city of Vietnam. Two events were held at the showroom in the HCO Building at 44B Ly Thuong Kiet, next to the Melia Hotel. One event was held for members of the press from 2:00 PM to 4:00 PM and included the official ribbon-cutting ceremony. Later, from 6:00 PM to 8:00 PM, an event for VIPs and potential customers was held in private at the showroom and adjoining outdoor patio.

British First Secretary, Andrew Holt, attended the event and delivered some prepared remarks about the significance of the first Rolls-Royce Motor Cars showroom in Vietnam. Mr. Holt expressed that he was honored to be part of the Vietnam success story. In fact, the common theme throughout the press event was the “remarkable success story” of Vietnam and the “country’s ambition for the future.”

In effect, the event on Wednesday was put into motion over a year ago. In June 2013 Rolls-Royce Motor Cars announced Regal Motor Cars as its first authorized partner in Vietnam. The chairman of the authorized dealer, Rolls-Royce Motor Cars Hanoi, is Minh Doan with Trung Doan serving as the Chief Operations Officer. In the time leading up to the official showroom opening ceremony on Wednesday, the brand’s Facebook page had already accumulated over 32,000 “Likes” which, according to Mr. Holt, served as an example of how the Vietnam market was ready for an official dealership.

When directly asked about unit sales in Vietnam prior to the opening of the official dealership, Paul Harris, regional director Asia-Pacific at Rolls-Royce Motor Cars, responded that it was difficult to know exactly how many cars had been sold in Vietnam due to unofficial channels but that it was around 100 cars. Mr. Harris revealed that Rolls Royce had directly supported one car’s production from Goodwood, England, where the company’s cars are assembled by hand.

Mr. Harris reiterated that now that Vietnam has an official dealership, it is the place to go to satisfy consumer demand for the brand and Rolls-Royce Motor Cars sees the Vietnamese market growing, with great potential in the future. In terms of global demand, the Ghost is the most popular model, followed by the Wraith and the Phantom.

Finding a Suitable Vietnamese Partner

The on-boarding process for the local partner was revealed by Mr. Harris; first, potential Vietnamese partners were encouraged to apply. Rolls-Royce then assessed the candidates, and analyzed the business, the partner fit, and passion of competitive candidates. Rolls-Royce selected Mr. Minh in part because he is a Rolls-Royce owner himself and the Rolls-Royce team felt that he was in a unique position to understand the brand and to deliver the brand’s message and values to the Vietnamese market.

During the Q&A portion of the event, a member of the Vietnamese press asked Mr. Harris why Regal Motor Cars was chosen as an authorized but not exclusive dealer. Mr. Harris responded that, for Rolls-Royce Motor Cars, authorization means exclusive as it has no intention to expand to a second dealership in Vietnam. Mr. Harris wrapped up his response by explaining that Rolls-Royce Motor Cars knows that demand is here in Vietnam for significant sales and that “we and our dealer partner are happy with the sales forecast but won’t divulge numbers.”

Rolls-Royce Motor Cars, currently owned by BMW AG, is in the midst of expansion plans in the Asia-Pacific region outside of China. Last year a showroom in Osaka, Japan was opened up and a new dealer partner was announced in Manila, Philippines as well.

The “Oriental Sun” Rising in Asia

On display was an $1.8 million model, the Oriental Sun, an exclusively produced limited edition model for Vietnam. That extravagant model was sold during the second event held at the showroom at night. In many ways it’s amazing that there is even a market for such vehicles in a country where the gross national income per capita is around $2,000.

It’s not surprising that the first Rolls Royce dealership opened in Hanoi instead of Saigon. Many luxury brands pass through the capital before setting up shop in the south where the customers usually evaluate products on more criteria besides price and/or country of origin. Rolls-Royce Motor Cars would be wise to continue these custom runs of single units (in addition to its Bespoke program) so as to allow potential customers in Hanoi and the surrounding areas to further differentiate themselves from their contemporaries—especially in the northern provinces of Vietnam. After all, one measure of uniqueness is the price tag between the same or similar products.

The Vietnamese Auto Market

Rolls-Royce Motor Cars’ expectations for the Vietnam market are in line with those of other auto manufacturers. Recently, Mercedes-Benz Vietnam announced that it had sold more than 1,000 cars in the first six months of the year. These sales figures amounted to a 70% increase from the same time last year and set a new record in the company’s 19 year history in Vietnam.

In total, more than 65,000 vehicles were sold in the first six months of the year according to Vietnam Automobile Manufacturers Association. A brand new car in Vietnam can cost two-to-three times or more than a similarly equipped model in the US due to taxes and import duties. Vietnam Automobile Manufacturers Association projects that a total of 130,000 vehicles will be sold this year, compared to 110,519 in 2013.

Luxury cars are becoming more common place in cities like Hanoi and Saigon. One can spot Lamborghinis, Ferraris, Maseratis, Bentleys and the full gamut of European and Asian luxury vehicles at any time of day or night while walking in either city’s downtown. While not everyone can afford such exotics or high-end luxury vehicles, there is still much demand for and attention given to these foreign brands.

In 2013, the Vietnam Motor Show, held at the Saigon Expositions and Convention Center (SECC) in District 7, Saigon drew over 155,000 visitors over the course of four days last October and resulted in the sale of 200 cars during the event. For comparison, the New York International Auto Show (NYIAS), the oldest and biggest auto show in the US, attracts slightly more than a million people over nine days. At the Vietnam Motor Show last year, some luxury brands such as Infiniti and Lexus made their first appearances at the event. And last year more than half of all luxury sales were comprised of Mercedes Benz vehicles—a sign of the preferred auto brand by Vietnam’s elite.

For those looking to score a deal in Vietnam’s pre-owned car market there are a myriad of options available including, but not limited to:

The Future of Auto (and Luxury Goods) Sales in Vietnam

As Vietnam’s economy grows, so too will grow the number of successful individuals who can afford the high price tags of luxury goods offered by established brands. These brands, of course, include luxury auto makers. In some ways, a car someone drives in Vietnam is more important than the home where s/he lives because everyone can see his/her car and few may see the inside of his/her home. This value placed on public appearances can lead to interesting situations where a high-end luxury vehicle may be parked in front of a modest looking house (or an attempt at an Asian castle).

Regardless, the number of people who will be able to afford these luxury vehicles and other goods in Vietnam will only increase. Auto and other luxury goods makers will need to find new ways for the nouveau riche and super rich to distinguish themselves from the hoi polloi. At the same time, the newest rich joining the ranks of the newly rich also leaves the door open for after market modifications from esteemed companies such as Brabus. Then, the only question left to answer will be where to drive such a super-charged beast? For sure not in rush hour traffic in either Hanoi or Saigon.

Still, the Vietnamese dream is to drive to work in a car. It serves as one measure that s/he has “made it” and it also helps to insulate from bad weather, pollution, and nasty injuries resulting from traffic accidents since cars are higher in the pecking order than motorbikes and other two-wheeled modes of transport.

The takeaway here should be that if rich Vietnamese can afford luxury vehicles with high sticker prices then they can probably afford whatever luxury brand you represent (and they will most likely want to buy it). The key is to set the new standard for whatever experience you are trying to create—because once you do that then most consumers and other brands will follow. Getting that first domino to tip may be tricky but the rewards will surely make it worth your while to make it happen.

A closer look at the showroom's facade.

A closer look at the showroom’s facade.

Mr. Holt addressing the crowd.

Mr. Holt addressing the crowd.

Right before the unveiling.

Right before the unveiling.

The exterior of the showroom.

The exterior of the showroom.

After the unveiling.

After the unveiling.

Mr. Harris addressing the crowd.

Mr. Harris addressing the crowd.

During the Q&A session.

During the Q&A session.

Mr. Harris and Mr. Minh.

Mr. Harris and Mr. Minh.

Before the event.

Before the event.

The team at Rolls-Royce Motor Cars Hanoi.

The team at Rolls-Royce Motor Cars Hanoi.

Vietnamese press checking out the Oriental Sun.

Vietnamese press checking out the Oriental Sun.

A member of TT Team being congratulated by Deputy Minister Tran Viet Thanh.

Hackathon Vietnam 2014

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Last weekend approximately 30 teams in Hanoi and 70 teams in Saigon competed locally in a Hackathon primarily organized by Silicon Valley VC firm Formation 8 in coordination with Hanoi-based incubator and consulting firm, 5Desire. In Saigon, the event was held at the National Academy of Public Administration and in Hanoi the event was held at the University of Science and Technology. Held over two days (Friday, August 1 and Saturday, August 2), the hackathon essentially served as a startup convention featuring guest speakers, presentation panels, and workshops. But the main hackathon portion itself consisted of 23 hours of coding as teams turned their wireframes, designs and visuals they had prepared earlier into prototypes or Minimum Viable Products (MVP).

The event in Hanoi culminated in two pitch sessions where teams presented their final products of the 23-hour hackathon to a panel of judges from 1:30 PM until 6:00 PM on Saturday with some brief breaks in between. According to the Hackathon Vietnam 2014 website, up to four member teams comprised of “any student, developer or technology enthusiast in Vietnam who [were able to] travel to Hanoi or Ho Chi Minh City on the day of the hackathon” attempted to examine one of the following themes:

• Connecting More With Mobile

• Social Networking across Regional Cultures

• Integrating Technology into Education

• Pushing Wearables into Everyday

• Spirit of Innovation

After the team presentations in Hanoi, Deputy Minister of the Ministry of Science and Technology Tran Viet Thanh was able to personally congratulate the winning teams. Another distinguished guest, Joe Lonsdale, Cofounder and General Partner at Formation 8 was present on Friday to speak to the hackathon participants. Mr. Lonsdale was previously in Vietnam earlier this year when he spoke at an event in Saigon in January.

The Teams and Products

We caught most of the presentations in Hanoi. For us, the most interesting product was Dicterious, “The English Studying App.” The UI was presented in a gorgeous flat design style and what we liked most about the app was that the game mechanics allowed the user to learn some English, learn some local history, and to have fun while doing so—all at the same time. At one point one of the judges stated that a serious English learner wouldn’t use an app like Dicterious and asked the team leader if it was primarily a learning tool or a game. The team leader responded that it was primarily a game but, in our opinion, it most resembles a learning tool with gamification elements.

Early on, one team’s mission was to “solve daily problems with social knowledge and photos.” Basically, the team was attempting to create a “knowledge flow” and have users contribute to the communal knowledge for a particular geographic area. There is especially a need for this kind of service for foreigners in Vietnam because there are a multitude of repeat postings on the two main Facebook expat groups, “Hanoi Massive” and “Expats in HCMC.” Most of these postings revolve around trying to find a suitable neighborhood to rent in, where to buy a particular foreign product, or asking for general help in some way. Surely there must be a more efficient way to organize repeatedly requested information for users to consume. Perhaps there is a potential business model in finding a way to phase out the same Facebook group posts over and over again via a social platform which can pair locals with foreigners for joint problem solving and cultural exchange.

Another interesting product was a bookmarker for maps. Yes, Google Maps has a save feature where you can “star” a location but after a while it can be hard to remember why you starred one place versus another. One of the prevalent features (although not unique) of Vietnam is that there are entire streets full of stores devoted to the same product or a similar range of products (lights, engines, bathroom furniture, etc.). So if a startup can find a way to organize, classify, and present that data to consumers (especially foreigners) then there might be a way to monetize that database. Perhaps the product or service can be as simple as a more accurate online map of Vietnam in terms of addresses with an overlay feature showing where there are clusters of similar stores across Hanoi or Saigon.

9Hug.com was another intriguing concept and upon reflection it or something along those lines could be a hit here. It’s a mobile social network application which gives you the ability to record a message for people you give a gift to. In a country (and most of Asia for that matter) where pictures of food and selfies are some of the most recorded media, perhaps the team is onto something. We can definitely see younger Vietnamese use this service to declare their affection for one another via video, which can then be uploaded to Facebook for the entire world to see.

The Winners and Prizes

The top three products were Voicepedia, Genius Kid, and Imaginator with the TT team (Voicepedia) winning the Hackathon and Genius Kid coming in second place. Coincidentally, both members of the TT team have the same name: Nguyen Duc Tam. There were also five honorable mentions for the teams that impressed the judges in one way or another.

Imaginator gave anyone (the team suggested teachers) the ability to create an online course. Perhaps they can tap into the growing popularity of Udemy and tailor the product to help content creators such as YouTube Stars establish new revenue streams.

Genius Kid, an edutainment app, had a nice UI and it looks like the well-presented art style might resonate with parents as well as children. If Vietnamese parents believe that the app will give their kids an advantage or will create “gifted children” at home then the Genius Kid app will be one step closer to being successful.

The winning team, TT, utilized text-to-speech technology in order to access Wikipedia articles. For their efforts, the winning team won a cash value of $11,500 which, according to the hackathon website, includes:

“A round trip for all winning team members to Silicon Valley to visit Formation|8 portfolio companies, Introduction to Silicon Valley’s top VC’s and Formation|8 portfolio companies. Dinner with Formation|8 team[.]”

The second place team won $750 and the third place team won $500.

The Takeaway

Overall, the event was a success—it was clear to see the enthusiasm of the teams when presenting, the judges were keenly interested in the presentations, and there were a number of compelling visions that were realized by the end of the hackathon. While not the first ever hackathon in Vietnam, or even the first bi-city hackathon in Vietnam, it was the biggest one yet. What mainly separated this hackathon from others before it was the high-profile organizers from the US and Vietnam as well as participation from members of Vietnam’s Ministry of Science and Technology.

However, there were a few disappointments. The pitches in Hanoi were mostly in Vietnamese, apparently due to a change by the judges in order to accommodate some of the more nervous teams. The fact remains that English is the language of business across most of the world and if any of the teams want to end up in Silicon Valley on a permanent basis then they will have to be comfortable pitching to potential investors in English.  Also, the ending of the hackathon in Hanoi was rather abrupt. Of course, it’s understandable from the participants’ perspectives–and they must have been exhausted by the end of the 23-hour hackathon, but it would have been nice to speak to the teams at the end or to make some connections between the participants and attendees. After all, there was at least one Fortune 20 company representative in the crowd who was actively scouting startups in the region (and others in the crowd who were recruiting).

Going forward, it will be interesting to see how often events like this one will take place in Vietnam now that it has been done at this scale. The startup community in Vietnam has had its ups and downs with more of the latter lately as signaled by the closing of co-working space Saigon Hub earlier this year. More local events such as hackathons and other community-building activities are needed to continue to drive the startup community in Vietnam in a positive direction, i.e., to raise the local standards to a global level. Ultimately, the hackathon was a watershed moment for the startup community in Vietnam—now it will be up to the entrepreneurs, coders, and technologists to keep the momentum going in the months ahead.

Lotte Center Hanoi

Lotte Center Hanoi

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A few weeks ago we had the opportunity to check out Lotte Center Hanoi which is in its final stages of construction. Lotte Center Hanoi is located at 54 Lieu Giai in Ba Dinh District and has been under construction since October 2009. The building is about a 30 minute drive from the Noi Bai International Airport and is nearby the Australian, Korean, Spanish, and US embassies. Its grand opening is currently scheduled for September 2, 2014.

Along with the workers, we had to pass through security turnstiles in order to access the site and then proceeded to head down into the parking area to reach the elevators that would bring us up into the office space. Since it was an active construction site (with three around-the-clock shifts), we donned safety hardhats and were escorted by a Lotte representative at all times.

From the beginning of our tour it was clear that safety was a major priority for the management of Lotte Center Hanoi. This focus on safe working conditions was especially refreshing to see since safety sometimes seems like an afterthought for many construction projects in Vietnam. It’s not uncommon to visit any construction site in Vietnam and see workers walking around barefoot, not using ear protection when operating loud machinery or not utilizing eye protection when welding, and not properly utilizing climbing harnesses when scaling scaffolding. In Vietnam, sometimes hardhats are worn more to protect workers from the sun’s rays than to protect their heads from falling debris.

However, at Lotte Center Hanoi we saw workers in neon safety vests, we saw portable and regularly-interspersed fire extinguishers, and there were clear evacuation route notices everywhere we went so we were impressed by Lotte’s commitment to safety. Restricted areas were clearly marked off and hallways were generally free of clutter (preventing a fire hazard). Floors were protected with thin sheets of wood and giant cloth sheets were even draped over the massive openings in the lobby to try to contain the air conditioned cool air from blowing out into Kim Ma or Lieu Giai streets. According to Lotte Coralis Vietnam, from October 2009 to June 2014 the site has undergone 14,000,000 man hours without an accident. It’s a great example of how a construction site should be managed and we hope that in the future safety will be a higher priority for more general contractors and developers in Vietnam.

Defining the Hanoi Skyline

As a major part of the Hanoi skyline, the building is immediately noticeable from Tay Ho District and appears to tower over the taller Keangnam Hanoi Landmark Tower (which is farther away from the city center than Lotte Center Hanoi) from the north side of West Lake. The building’s exterior shape is in reference to the ao dai, the traditional Vietnamese dress and the building is actually separated into two towers: Tower A and Tower B which are connected via Sky Garden. At night, the façade at base of the building lights up in a spectacular array of changing colors to match the ever-changing color of the “Lotte” sign.

Throughout the building, First Grade building systems are used and the building uses some advanced techniques, which makes it a pioneering project for Vietnam. For those worried about tectonic plates, the building can withstand a 7.0 magnitude earthquake due to the two-layer outrigger system which enhances its structural stability. Low-carbon dioxide concrete was used to construct Vietnam’s largest support base structure and the building features rainwater harvesting and gray water systems, which makes it a truly eco-friendly project.

World Class Interior Features

Overall, the feel of the space is quite nice even with ongoing construction and unfinished areas. The building is divided into four main spaces: Serviced Residences, Hotel, Office, and Commercial. The Observation Area is on the 65th floor and will feature a Sky Deck like the one in Chicago. The Serviced Residences and Hotel are from the 33rd to 64th floors flanking both sides of the Sky Garden that occupies the center of the building. The hotel will have 318 rooms of which 83 will be suites and 235 will be Deluxe Rooms. The 32nd floor is the Technical Floor and the Offices are located on the 8th through 31st floors. On the 7th floor, there will be an outdoor swimming pool, a basketball court, separate male and female saunas, an indoor golf range, a yoga room, a gym, a jacuzzi, and an outdoor BBQ grill area. Starting on Ground Floor and continuing to the 6th floor will be the Lotte Department Store and Lotte Mart. There will be five levels below-grade which will contain the parking area for the building.

One of the unique features about Lotte Center Hanoi is the Sky Garden, which is a series of atria inside the building that occupy the middle space between Tower A and Tower B. They are four-story (office floors) and five-story (residential floors) areas for communal activities such as meetings, private events, or just a place to relax. For the office spaces, the tenant on the ground level of each atrium is able to modify the atrium to reflect a company’s culture (within Lotte specifications). The office space also features one of four raised floors in Hanoi, making it easier for the tenant to outfit the space to meet specific technology needs.

There are one, two, three, and four bedroom Serviced Residence layouts to choose from with the one bedroom (64-84 m²) pricing around $2,700 per month and four bedroom (175 m²) available for around $7,000 per month. If you do end up moving in, make sure to ask for permission before hanging any paintings. All the serviced apartments we saw had a beautiful view of West Lake but most serviced apartments should have a view of the north, west, or east due to the building space distribution. Double Low-E multi-layer glass are used in the Saint Gobaint windows, which are imported from France. Some bedrooms might have a Sky Garden view as opposed to a skyline view depending on how many bedrooms a unit has. All apartments are equipped with WiFi and wired internet connections.

The bedrooms all have different styles, themes, and layouts, ranging from lighter woods to darker tones with complementary appliances. Regardless, each apartment is fitted with a single downlight near the entrance that is motion activated to provide light as soon as you enter the apartment, and which will turn off automatically once you leave. It’s a great and rather simple feature than can be helpful in any residence.

For private events there will be three banquet halls (Crystal Ball, Charlotte, and Emerald) to choose from plus a Wedding Center on the 6th floor. Depending on which banquet hall, it can accommodate anywhere from 100 to 900 people. A wedding celebration in the Crystal Ball banquet hall might be the new standard for Hanoi’s elite.

Perhaps the most-anticipated feature of Lotte Center Hanoi will be the rooftop restaurant on the 68th floor called “Top of Hanoi.” It will be an open-air restaurant with a surrounding view of Hanoi—something that does not yet exist in Vietnam at or near that height. Additionally, there will be six other food and beverage (F&B) outlets to choose from, featuring a variety of cuisines and flavors.

A New Level of Luxury in Vietnam and in Asia

If you end up living in one of the Serviced Residences in Lotte Center Hanoi, then you might never have to leave the building for most of your activities, provided that your office is downstairs, you shop at Lotte Mart or Lotte Department Store, and any visitors you might have stay in the five-star hotel. It’s truly an amazing vision that has been realized in Hanoi and we look forward to what the Lotte Group has in store next for Vietnam.

Lotte Group has the Lotte Legend Hotel in Saigon so this is its second hotel in Vietnam. It’s built by Lotte Group, a conglomerate that has over 60 business units and employs over 60,000 people with headquarters in Japan, but significant business divisions located in South Korea.

Lotte Group is currently building Lotte World Tower in Seoul, Korea. It will be almost twice the size of Lotte Center Hanoi but currently about 70 of 123 floors are complete. When it will be finished in 2016 (scheduled), it will be the sixth tallest building in the world.

The Lotte Group is named after Goethe’s work of art, “Charlotte.”

For more information about Lotte Center Hanoi please contact Nguyen Thi Hien (Ms. Hien) in the Marketing Department via email at hien.nguyen@lotte.net or via telephone at +84 97-925-9190.

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!

 

 

Time In Vietnam

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A common sight in front of many businesses here.

A common sight in front of many businesses here.

Men playing a game in front of a temple.

Men playing a game in front of a temple.

Time on display.

Time on display.

A barge ran aground on the Mekong River.

A barge ran aground on the Mekong River.

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

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

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

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

Person A orders.

Wait staff repeats Person A’s order.

Person A confirms.

Person B orders.

Wait staff repeats Person B’s order.

Person B confirms.

Wait staff repeats the entire table’s order.

Person A and Person B confirm.

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

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

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

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

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

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

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

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

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

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

We counted three welders on site.

We counted three welders on site.

Some Vietnamese Phrases That May Save or Waste Your Time

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

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

“You need to spend money to make money.”

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

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

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

“Don’t need.” (“Cannot.”)

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

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

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

“Not your job, not my responsibility.”

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

Different Approaches for Different Situations

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

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

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

Setting up for a marketing event in District 1.

Hanoi and Ho Chi Minh City (Saigon)

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Like many countries, Vietnam has experienced stark and monumental changes: periods of colonization, expansion, and more recently, independence and renovation (doi moi). However, throughout its history there has been a general flow of people from the original northern areas near China to the southern Mekong delta. These migration patterns have helped shape regional (north, central, south) and cultural identities on national, provincial, and municipal levels. Today, these differences are worth noting because they should influence effective communication in different parts of this heterogeneous country. Hanoi and Ho Chi Minh City are just two metropolitan areas that differ in Vietnam so if you spend some time here then you will learn just how varied it can be.

Enough Vietnamese settlers traveled south to modern day Ho Chi Minh City (which was then part of Cambodia and known as Prey Nokor) that it eventually became part of Vietnam in the 17th century. Even after the war between the north and south ended in 1975, many Northerners traveled south to seek better economic conditions since the north was still largely war torn and the south was in better condition due to American investments (prior to the renaming of Saigon to Ho Chi Minh City which both names are used interchangeably today). And even today, some young Hanoians choose to go to HCMC in search of a career after graduating from university for a variety of reasons (more opportunities, more independence from family, a change of scenery, etc.).

So how have these trends impacted the Saigonese mentality? Well, Saigonese are known to be more entrepreneurial and are known as risk takers (after all, it’s risky to become a settler in search of a better life in a different place than “home”) compared to their Hanoian counterparts. Perhaps in part due to western (French and then American) business influence in the 20th century, there is generally better customer service in HCMC than in Hanoi. In fact, wait staff may be openly hostile toward customers in Hanoi, or at least slow to respond to customers’ needs. As a result, things move faster in Saigon than in Hanoi—at least on the surface.

In terms of business, there are smaller deals in Saigon but they are more certain and quicker to be completed. In Hanoi the focus is on larger deals but there may be more uncertainty even after the deal has been signed. Why? In general, Saigonese are spenders and Hanoians are savers. If you were to find five customers in Hanoi, then you would be able to find ten customers in Saigon for the same product/service. Saigon is definitely the economic center of the country; most multi-national corporations are set up in Saigon unless they need regular contact with government liaisons at various ministries.

So while Saigon is the economic center, Hanoi is the political and cultural capital which is a reason why Hanoians are reputed to make better managers than their more market-oriented Saigonese countrymen. Hanoians are also more pensive in terms of diving below the surface of situations, meanings, and intentions—but they can also be more abrupt in a way that might be interpreted as rude. The interesting (and misinformed) advice regularly given out in Saigon is to never do business with Hanoians because they will cheat their partners at the first chance. The people in Saigon who freely give out this advice are usually Saigonese who rarely visit Hanoi or foreigners who are repeating what their Saigonese friends told them.  While it is true that Saigonese are initially more open and friendlier than those in the north, Hanoians open up once a relationship has been established.

In terms of the atmospheres between the two cities, Saigon has quite an open layout with wide boulevards–but there is a lot of traffic and rush hour can be a nightmare, especially if caught in a storm on a motorbike. There seems to be just as much traffic in Hanoi but the streets are much narrower than in Saigon—perhaps half as wide, just as chaotic, and even smoggier than Saigon. However, there are more lakes and green space in Hanoi so the city feels “greener” than Saigon, which also has a river (with the same name) that runs through it like in Hanoi (Red River).

In terms of nightlife, everything is more opulent in the south and more reserved in the north. It’s safe to say that nightlife in Saigon and Hanoi are completely different; in Saigon some venues are open until sunrise and beyond. In Hanoi most places shut down at midnight as the police make their rounds. At sunset the Saigon skyline is colorful with light displays on buildings which are mostly situated in District 1. As a side note, the first (Keangnam) and third (Lotte Center) tallest buildings are in Hanoi with the second-tallest in Saigon (Bitexco).

On the street level, there is a more European feel in Hanoi–perhaps because of the historical relationship and student exchanges Hanoi has had with Moscow and other European capitals; after reunification it was not uncommon for Vietnamese to go abroad to study in countries such as Poland, former Czechoslovakia, former Soviet Union, and France (even before reunification due to colonial influence).

The European influence seems to extend to dress in Hanoi where its citizens tend to dress up more than the casual and laidback Saigonese. They certainly have the opportunity to wear layers during the winter when it can get quite cold—and most of the traditional buildings in Hanoi are not heated. Winter in Saigon is pretty mild, even at night. Even though Hanoians are more formal in their dress, Saigonese are flashier when it comes to material possessions such as luxury vehicles and jewelry.

Some people would say that, overall, Saigon is more suitable for westerners and both cities seem to attract different kinds of expats to each—for better or worse.  To truly understand Vietnam, one must spend time in more than one city because Vietnam is so different depending on the city or region. Some differences between the cities (and other places) may be immediately obvious, but others will take time to discern especially to a newcomer.

Northerners and southerners (and others) are able to tell one another apart pretty easily in conversations. One way to determine whether someone is from the north or south is by their accent. The northerners have a heavy emphasis on the “z” sound, even pronouncing the letter “r” as a “z” and the southerners prefer the “y” sound. Throughout Vietnam there are several major accents so it’s not just a “north” and “south” dichotomy—it’s just that those are the most apparent differences within the country since most foreigners in Vietnam visit either city.

The central and other areas (highlands, coast, etc.) all have their own distinct flavors and unique qualities. After all, there are more than 50 different ethnic groups in Vietnam. Despite the differences throughout the country, Vietnamese are more similar than they are different: they are all incredibly patriotic, they have a strong sense of family (certainly more than in the west), and if you establish and keep a good relationship with a Vietnamese person then it has the potential to last for a lifetime. Above all, not every person you encounter will be representative of the generalizations (and stereotypes) of their background—there are good and bad people everywhere—so an open mind, tacit knowledge, and a contextual awareness of every situation is vital. After all, it could be the only way to truly experience and embrace Vietnam and any opportunities that might unexpectedly come your way in this surprising country.