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First Mekong Entrepreneurship EcoSystem Summit

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From June 11-13, entrepreneurs, ecosystem builders, and explorers from Cambodia, Laos, Myanmar, Thailand, and Vietnam came to Ho Chi Minh City, Vietnam to connect, build bridges, and compete for $20,000 to fund their initiatives during the first Mekong Entrepreneurship Ecosystem Summit, organized by the Centre of Business Studies and Assistance (BSA) and DHVP research as part of the TIGERS@Mekong public-private alliance.

TIGERS@Mekong (Technology Innovation Generation and Entrepreneurship Resources) is a consortium of country and region-specific partners. As found on the TIGERS@Mekong site:

“The U.S. Department of State launched the Mekong Technology Innovation Generation and Entrepreneurship Resources (TIGERS@Mekong) as a flagship project under the Connect Mekong framework at the East Asia Summit in 2012.”

Of the participant countries from the Lower Mekong, they are at different stages of market development and interest despite encompassing more than 230 million people in the region. The two shining stars, Thailand and Vietnam, currently have a lot of interest from venture capitalists and have almost 160 million people between them. Vietnam also has a lot of interest from foreign investors as the TPP is expected to pass soon. Laos and Cambodia are still largely developing and share approximately 22 million people between them; Cambodia, and especially Laos, have a lot of room to grow. And Myanmar (population north of 50 million), although “open for business” since 2011, has largely elicited a “wait-and-see” approach from foreign investors and their representative offices. There are elections later this year, so perhaps things will be different after. Already in the region, there is the Mekong Business Challenge, which has entered its 10th year so there is already some sort of dialogue in place and deepening it will only positively impact the region and its inhabitant.

So while it was good to bring the countries together, it’s also necessary to recognize that each country has its own strengths and weaknesses, and market opportunities. Thus, a tour through each country (perhaps a two-week Bootcamp to cover a topic) in a graduated fashion would allow participants to learn new skills, but also learn more about the countries in the region, and also establish a wider network. Myanmar, Laos, Cambodia, Vietnam, and Thailand could be a suitable 10-week path in the form of topics such as Ideation, Market Research, Concept Refinement, Prototyping, and Pivoting (if/when necessary).

The Pitches

Below, are some of the top 10 pitches for new initiatives which were presented at the summit (in their entirety, as described by those who pitched).

“LAUNCH PAD

The main reason of failure of tech startups in the region is the serious lack of VISION and KNOWLEDGE about the market, players and customers. And the 2nd main reason is, once they have built first versions of products or services, they don’t have a proper way to LAUNCH and TEST their business.

With these 2 reasons, I believe that we must build a LAUNCH Platform for all tech startups in the region to:

  1. join, see and learn what other tech startups are doing in the region (Eye-Open). This helps them a better VISION what should do.
  2. Test their products before launching, get feedbacks from peers. And
  3. Find partners from other countries for EXPANSION when they grow

 

CROWD FACTORY

CrowdFactory consists of three main parts: CrowdPitch, CrowdCoach and CrowdData.

CrowdPitch is an event that helps startups have a chance to practice their pitching to a live audience. There are multiple events every year (depending on each local landscape) and each event has 4 startups that pitch. Audience pays for a ticket to attend and 75% of their ticket money goes straight to their favorite startup. That means it’s an offline crowdfunding event. CrowdCoach is CrowdPitch’s sister event. The number one winner of CrowdPitch gets to attend CrowdCoach, where for two hours, the startup gets to interact directly with four mentors, who give private and in-depth feedback to the startup. All of this is supported by CrowdData, as the local organizers collect new startups and mentors, they slowly collect data on the ecosystem, supporting the cycle of events under CrowdFactory.

 

Mekong Startup Training for Trainer

The program trains startups on necessary skills needed such as sales and marketing skills, users experience, digital marketing, tech skills and so on. In order to complete the program, the group of trainees need to train other startups. For those outstanding ones, will be going to train startups in other countries.

By doing this, startups in each country will meet and they will then share the business and investment information of their own country and build there networks.

This program will help ensure the wellbeing and to strengthen the networks of our Mekong region startups ecosystems.

 

Mekong Startup Weekcamp

The IDEA behind his concept is about

–        – engagement between potential Tech-Startups and Business Start-ups to share of their skills and expertise each other.

–        – networking among key players in local and regional

al The event will take 4 day long at National Event and basically the following activities will include and can adapt as per local needs.

–        Selection Process to Potential Entrepreneurs (Potential Tech and Business Start-ups) to enter Training Session

Activities are:

–        National Start-up Weekcamp Training (2 days)

–        Industry Experts /Founders’ Talk – Experiential Sharing  (1 day) “Regional Founders or Experts will be invited” (1 day)

–        IDEA Showcase and Feedback from Regional Founders/ Experts and award ceremony at Networking Night (1 day)

Along with IDEA Showcase, local Business and Start-ups booths will be exhibited by regional Start-ups  (to meet with the regional accelerators/investors from the country and from the region)

We can adapt the activities as per local needs and can leverage this concept to local and regional areas.

 

Coenlight 

Coenlight is an innovative educational platform for effective skills-based learning and with the mission to create an edu-lab that incubates intellectual potential. This platform is a grassroots initiative tailored to the Cambodian and ASEAN context. We are driven by a strong social mission to revolutionize Cambodia’s and ASEAN’s education ecosystem based on our unique strengths. At Coenlight, we believe that any passionate skilled individual can develop into an extraordinary instructor. We seek to challenge the existing paradigm that becoming a teacher is a static threshold to pass over and uphold that learning is a life-long process.

Our Model:

1) Train individuals to translate their skills into innovative courses.

2) Match passionate instructors with motivated students.

3) Build an ecosystem that fosters critical thinking, skill building, and mentorship.

4) Empower the most talented students to “pay their learning forward” by becoming Coenlight instructors.

 

Wicked Problems Worth Working On…

Many times we get stuck into thinking about market size and we filter out everything except our customers (whoever we think they might be).  However, Southeast Asia has a number of major challenges common to almost everyone in the region: disparity between rich and poor, gaps in the education system, rural poor, corruption, energy, water issues…  These are major challenges which are bigger than any single country, and they represent big opportunities for impact entrepreneurs and impact investors who can craft the right solutions.

If we could only put together a list of the Wicked Problems, clearly defined, focused, and yet still significant, we could encourage players in the ecosystem to galvanize around one or more of them, to run themed boot camps, provide seed grants, compete in themed business plan competitions, and encourage funding from industry players.

This project asks for initial funding to help find a methodology to develop this list of Wicked Problems.  Tapping into the expertise and connections of government agencies like USAid and other aid organizations there must be people (academics? NGOs? or…?) who have developed a suitable methodology that could be used to seek out, define, and get support for a good list of Wicked Problems for Southeast Asia.  How do we find out what has already been done, what can be borrowed or co-opted for our purposes, and how could we implement it?

 

CrowdHelping

We want to build an online platform that transforms the way small scale local social entrepreneurs get access to funds, by crowdsourcing bureaucratic grant proposal writing to volunteers.

Picture a small scale social entrepreneur operating in rural Myanmar. She has intimate local knowledge, she know what kinds of ventures will have the most positive impact on her community, she is already bootstrapping her idea to build a social enterprise. All she needs is access to a small grant to push her idea to the next level.

Now picture a charitable organisation, an impact investor, or an aid agency sitting in an office in Yangon. They have money that they want to give away to people exactly like our social entrepreneur.

What stands between them? Bureaucracy.

Our social entrepreneur only speaks her regional language, she cannot write a 4 page proposal, she doesn’t understand the forms she has to fill out to qualify for grants. However, she does have a smartphone.

. How does it work?

  1. Social entrepreneurs simply shoot a short video of themselves pitching their idea in their local language, posts it on their profile on our platform
  2. A network of seasoned mentors who have close connections with local NGOs and social enterprises will vet the ideas that social entrepreneurs post, in order to create trust.
  3. Volunteers who have successfully applied for grants and know how to write proposals to apply for grants will browse the pitches of social entrepreneurs posted on the platform. Through the mentors vetting process, the volunteers will know which of the pitches are made by trustworthy entrepreneurs.
  4. Once the volunteer sees a pitch she likes, she will help fill out forms, write proposals and help submit them to organisations that can give out small grants

We want to replace bureaucracy with a trust network. It’s AirBnB for access to grants.”

Going Forward

The winners were Agri-Tigers, Mekong’s Next Top Mentor, and Crowdpitch but it would be great if the organizers could host all the pitch decks online for interested parties to view and perhaps develop. Across the board, technology and entrepreneurial leaders want to inspire venture building, boost the entrepreneurial capabilities of young people, and garner a stronger entrepreneurial spirit overall. In part, it will require a mindset shift, a way of not only thinking differently, but acting differently as well.

Last weekend’s event in Ho Chi Minh City was an opportunity for those on the frontline of building and shaping ecosystems to share ideas, failures, and successes with each other—and also garner support for new initiatives. In all, it was good step toward connecting key individuals and organizations in the region in a cohesive fashion and will hopefully lay down the groundwork for increased communication and cooperation in the region.

 

LED accent lights.

Vietbuild Hanoi 2015

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Today is the last day of the 2015 Vietbuild Home International Exhibition, a place to showcase new products, new technologies, and to check out new trends in the Vietnamese construction industry. The fair, held from March 25-29, is located at the Giang Vo Exhibition Center in Hanoi’s Ba Dinh district (184 Giang Vo, to be precise). More than 1,000 booths were spread over five areas to represent over 400 local, international, and joint-venture companies.

We stopped by the exhibition twice over the course of the four day event to get a feel for both the direction of the construction industry and for current customer expectations in Vietnam. At times, the exhibition felt more like a nightclub with the loud Vinahouse music playing as well as the “PG” (promotions girls).  Some of the larger and more popular booths were set up by companies like Eurowindow, Viglacera, and Austdoor. In addition to products, several real estate developments were on display such as V-Green City Pho Noi and Cam An – Hoi An. Furthermore, there were some crowded safety booths, which is good considering the generally lax attitude toward safety on many construction sites; we’re glad to see that safety considerations are becoming a higher priority.

Overall, there was a strong showing of reputable foreign products such as Stanley Tools and DeWalt; as well as products from South Korea, Germany, China, and others at the fair. For smart home options, there were several companies, including brands from Portugal and the Czech Republic. However, there were also a portion of products that would have a hard time finding traction in the west. Eastern and western tastes can be very different, i.e., what is considered “good design,” “fashionable,” or “stylish” in one part of the world would be seen as falling flat in another. Vietnamese (and Asian, to an extent) preferences, in general, tend to gravitate toward ornate, flashy, or imposing furniture, art, and, design (or frugality for items that very few people will see). For example, we witnessed plenty of oversized wooden furniture at the exhibition, as well as showers with multi-colored and changing LED lighting installed in the unit itself; a “karaoke shower,” if you will.

As we continued to walk around, at one point we caught a glimpse of 18th century aristocracy via a local company’s booth representing the Renaissance brand. The closest product to the other side of the spectrum was a “futuristic” nano spray which could render an item waterproof if appropriately applied—product demonstrators were using hair dryers, light bulbs, and other appliances that had been coated with the spray under water in a fish tank. According to the salesman, a can sells for approximately $50 and a coating will last between one and three years. While certainly a useful technology, the spray has the high potential to be misapplied, misunderstood, or misused–especially when using electrical products under water.

One section that caught our eye was the CNC machining and laser engraving area where small Buddha statues and other traditional-looking pieces of art were being crafted in front of us. It was interesting to see the numerous companies that are operating in this space, and even more curious that they were choosing to (re)produce traditional art pieces instead of contemporary ones. Tourists beware: that “old wood carving” (you’ll buy thinking that an old grandfather in a remote village somewhere spent years carving) could have actually been made by a computer-controlled machine the day before.

Vietnamese Homes and Expectations

The basic shape of Vietnamese homes (also known as “tube houses”) is credited to older tax codes resulting in the standard shape of ~3 stories tall by 5 meters by 13 meters deep (15ft wide, 40ft long). Many Vietnamese homes have a retail business (with fewer numbers having a business office) on the ground floor. Some newer houses can still use these dimensions as an archetype, but for those who can afford it, bigger is always better—especially in Asia.

Still, space is at a premium, especially with two, three, or more generations under the same roof (traditional Vietnamese children don’t move out until they marry and the eldest child must care for his/her parents). Additionally, taste, like art, is highly subjective; what looks or sounds “good” to one person may not to another. However, if you want to sell in a particular market then you need to understand the local culture and sell things the local consumers want. At the same time, you can also risk damaging or diluting your brand image just to make a quick sale. Thus, educating consumers about your product or service—and continuing to drive a consistent message—is the best way to establish your brand as a market leader in the long term. However, it can and will be capital and time intensive.

For example, new homeowners don’t care that the unit they are being handed over is dirty (e.g., paint spots on the floor and all over the baseboard), has shoddy installation (e.g., door trim not flush with the walls), and generally represents poor craftsmanship (e.g., gaps, crooked lights, and cheap materials). Why? Because once they take possession of the unit, they invest additional millions or billions (VND) to renovate the (sometimes) brand new unit.

(And why should trade workers and their managers care if clients don’t demand higher standards? These low standards only work as long as the requirements are low—they definitely aren’t suitable for smart homes.)

In apartment buildings, this renovation can mean that even the original front door is replaced with some drab steel cover and, of course, bars are added to the windows for security purposes. However, this isn’t the norm in much more expensive serviced residences. Yet, when we visited Lotte Center Hanoi last year about a month before it opened, the most technologically advanced equipment in a serviced unit was a motion sensor near the front door to turn a single light on/off upon entering/exiting. We covered the opportunity in this space in last week’s post.

Last week, we went to a brand new apartment to check out a recently finished two bedroom unit in the center of Hanoi; overall, the space was poorly utilized. For example, the “master” bedroom had a tiny balcony but no bathroom. The other bedroom had its own bathroom but there was a two square meter hole in the wall (near the ceiling) leading outside. The original door on the unit was for a flimsy deck door so there was little privacy. The other residents on that floor had all replaced their doors with a heavy wood door with a gray metal security gate to cover it (from different vendors). And, of course, security bars could be seen in front of the windows—an after market addition. Ultimately, it was hard to tell whether it was a hallway in a new apartment building or in a new prison.

Current and New Opportunities

Home security remains a huge opportunity in the Vietnamese market. As mentioned, Vietnamese homes usually have barred windows as well as shudders. There is at least one heavy-duty gate on the front door and if there is another then it’s a different style (metal gate or metal roller). Any walls might have barbed wire or broken glass perched on top and some deck spaces will be fully enclosed with metal bars. This security conscious approach to their homes is partly the result of a cash-bashed society, but it’s also because Vietnamese consumers tend to follow the pack: “if my neighbor does it, then I must also do it or do it even better.” Think of it like a hyper “Keeping up with the Jones’” mentality.

Companies like Dropcam provide the perfect option for Vietnamese consumers, who can check up on their homes while they are away or can be alerted when there is unauthorized movement. Beyond security, other smart home products could be successful in Vietnam as well including Philips Hue and the Sonos line up. But how can consumers want something they don’t know about?

Events like Vietbuild remain a great opportunity for demonstrating products—and in markets like Vietnam’s where educating consumers about a nascent industry is required, there is no substitute for seeing how a product works (instead of hearing about it). This is a country where the majority of e-commerce payments are handled COD once a consumer has had the ability to check out the product in front of his/her house before paying the delivery driver. Seeing is believing when it comes to new technology, and especially in Vietnam where consumers are suspicious about product quality as it still has room for improvement.

The next Vietbuild expo will be held in Danang from April 22-April 26.

On the road north of Vientiane.

Vientiane, Lao PDR

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

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

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

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

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

Vientiane Through Foreign and Local Eyes

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

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

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

Outside of Vientiane and into the Countryside

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

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

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

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

A Future Focus

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

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

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

Startup Vientiane

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

Opportunities for Startups:

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

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

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

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

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

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

 

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

Vietnamese Work Culture

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

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

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

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

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

Managing Vietnamese Workers

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

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

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

Training Vietnamese Workers

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

Future Vietnamese Workforce Potential

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

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