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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.

 

Gaming in Vietnam

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A cyber cafe in Ba Dinh district, Hanoi.

A cyber cafe in Ba Dinh district, Hanoi.

A cyber cafe on Kim Ma street in Hanoi.

A cyber cafe on Kim Ma street in Hanoi.

Vietnamese people love to play games—on the street they play co tuong, a traditional chess-like game. Groups of older men will crowd around the two opposing players to comment on strategy and prior moves. In older times, the best co tuong players would travel to different villages in Vietnam to challenge other players to prove they were truly the best.

In Asia, gambling is very popular and it ranges from betting on national sports teams (like football–soccer) to betting on the winner of cock fights at the local hangout. Currently, Vietnamese people are not even allowed to enter a casino in Vietnam, although the local policies may be changing in the future. Trips abroad to Macau (for those who can afford it), and closer in Cambodia across the Moc Bai border (where casinos specifically target Vietnamese consumers) will have to satisfy the demand for lucky money–at least for now.

So while the older generations are focused on traditional elements of gaming, the youth have turned to technology in the form of video, computer, and mobile games. And recently, the world has turned to Vietnam for a massive mobile gaming hit that seemed to rise on its own. If you know anything about gaming in Vietnam then chances are that you’ve heard of Flappy Bird. If you have never heard of Flappy Bird, the mobile game took the world by storm earlier this year and propelled its creator, Nguyen Dong, to fame and fortune.

Mr. Dong’s curious tweets about the massive public interest in his game only fueled additional press inquiries and an even greater amount of demand to download and play his game. Eventually, he pulled the game off the market only to exclusively re-release it on Amazon’s Fire TV platform.

However, Vietnam’s gaming scene is comprised of more than just Flappy Bird. Besides a robust coffee and cafe culture in Vietnam there are thousands of cyber cafes where young Vietnamese gamers play DOTA 2, League of Legends, and an assortment of games distributed or developed by local and international companies. Additionally, there are a number of independent game studios in Vietnam, as well as companies like Gameloft, and VNG, Vietnam’s premier internet company (and formerly known as VinaGame–revealing its origins).

A Match Made in Heaven

Gaming in Vietnam is a $200+ million industry with very high annual growth over the last three years. Even in an economic downturn gaming isn’t very negatively affected. If anything, less business activity allows workers to spend more time playing games to get through a dreary work day. It’s common to see security guards and desk-based customer service workers take some gaming breaks to help pass the time.

App distribution spans beyond just the Apple App Store or the Google Play Store in Vietnam. Third party marketplace like Appota offer an alternative to official marketplaces. Based on conversations with Appota and MWork representatives, there are estimated to be anywhere from 5,000-12,000 developers in Vietnam, which includes big companies and independent coders across the iOS, Android, and Windows Phone platforms.

iOS devices are seemingly everywhere in Saigon and Hanoi—and they will only increase in popularity as the middle class continues to rise in Vietnam. As smartphone sales continue to increase across Vietnam and Southeast Asia, the user base for games will automatically increase as well. And as new iterations of iPhone models come out, the rich and fashionable Vietnamese consumers acquire them and gift their old phones to family—perhaps to younger cousins who otherwise would not have an iPhone.

A Closer Look: League of Legends in Vietnam

League of Legends is the most popular MOBA (Massive Online Battle Arena) game in the world and is played by millions of people; in Vietnam, Vietnam Esports, distributes the game through its Garena+ client.

MOBA is typically a top-down five-player versus five-player (5v5 PvP) match where each player controls a different “Champion” class that has special abilities. The game has a few different game modes which become available to the player as s/he “levels-up” his/her champion.

The game modes can be divided into 3 distinctions: 5v5/3v3 PvP “Classic” style; Co-op versus the computer (AI) variant; and custom, which is used for tournaments and custom game modes. The objective of the classic 5v5 game is to destroy the opposing team’s Nexus, a strategic item. This goal is accomplished by first attacking the other team’s turrets; powerful defensive structures that guard each of the corridors between opposing bases.

Players are aided in their effort by “creeps” which can be compared to a pawn piece in a game of chess. These characters are only dangerous to a player in the early portion of the game, when the players are weaker.

After destroying all the turrets leading to the enemy’s base in a lane, players continue to push forward to destroy various defensive structures until reaching and destroying the Nexus. League of Legends also has an online store where players can purchase champions, character skins, and other in-game items (these micro-transactions are how Vietnam Esports primarily earns revenue).

There are two types of in-game currency: RP (Riot Points) and IP (Influence Points). Both types can be used to purchase champions but only RP are used for skins (a way to change a character’s appearance). For players who don’t want to spend money on virtual items, characters cost from 475 IP to 6,300 IP. A dedicated player can reach Level 7 to unlock most of the maps and game modes over the course of two days.

Vietnam Esports’ Game Operations division primarily localizes international content into Vietnamese. Riot Games, the developer of League of Legends, updates the game via patches that need to be translated into Vietnamese. The division also manages two websites: http://lienminh360.vn/ which is more community focused and the official league in Vietnam website: http://lienminh.garena.vn/. Besides patch notes, players can also find guides and other content that introduce new players to the game (they are very open-ended so that players may develop their own style when learning to play).

The website also has a section for tournament information; the top tournament tier is the Garena Premier League (GPL), which consists of the best teams in Southeast Asia (SEA) and Taiwan. Below that is the Dell Championship Series A, which is for the top eight teams in Vietnam, followed by Western Digital Championship Series B (WDCS B): the semi-pro tournament circuit. A mini tournament, called the GCafe Cup, is hosted every week. The way a player rises from the amateur ranks to become a pro is by moving up through each of the tournament circuits–a very competitive process.

Mobile and Multi(player) Approaches

Mobile game developers and studios are more popular in Vietnam than traditional development houses because it is less expensive to develop an application than it is to develop a computer or video game, which often require a large amount of staff. In some cases, a good mobile development team can be made up of a team leader, a coder, and a designer (if there needs to be three people at all). Plus, technologies like Unity 3D are leveling the playing field for development teams (in terms of costs and time) which means that the game concept, game design, and game mechanics will be even more important for differentiating quality games from clones and other apps that are riding popularity waves.

If a game is not a global hit, then for it to be successful in Vietnam it has to be localized to fit Vietnamese user preferences and expectations for games. The advantage here is for Vietnamese workers who have worked in foreign brand studios in Vietnam and have left to start their own development team (and who know the culture better than foreigners). They will have lower costs across the board to bring a product to the market. The safest route is to take a successful game product in China and to localize it for Vietnam–which is partly how VNG became so successful; this is a great strategy to reduce risk, especially for new entrants into the Vietnamese market. However, being truly innovative, especially in a “fringe” space, requires taking a risk to be contrarian and right. It will be interesting to see which strategy younger Vietnamese developers choose–both in the short term and in the future.

The outdoor stage before the event.

Yamaha Town Hanoi

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On September 5 Yamaha Town Hanoi opened its doors to the public at 62 Nguyen Chi Thanh in Dong Da District, Hanoi. The opening of the showroom is unique because it is the only official Yamaha Motors Vietnam showroom in Hanoi—although a potential local partner has the option to takeover the management of the facility, which includes a state-of-the-art service area on the first floor (ground floor for the Americans), and office space on the second floor.

It took about a year to open this particular location but depending on a local partner’s resources (and relationships) and taking the dealership location into consideration, it can take between three and 12 months to open up a new Yamaha Motors Vietnam dealership.

Across Vietnam there are approximately 500 showrooms where Yamaha Motors products can be found in—a staggering figure considering that Yamaha Motors Vietnam has been operating here for 15 years. Yamaha Town Hanoi is the latest location to join the stable of other Yamaha Town locations throughout Vietnam. There are Yamaha Town locations in the cities of Can Tho, Vung Tau, Phan Thiet, Nha Trang, Da Nang, and Hai Phong. In the entire country, Hanoi is the second-largest market for Yamaha Motors Vietnam as the brand is more popular in Saigon.

At the opening ceremony, the director of Yamaha Motors Vietnam, Mr. Masaru Ono, spoke about grasping the needs of each customer segment and he also set the development of marketing as an urgent task. Mr. Ono laid out how Yamaha Motors Vietnam has a specific strategy to set the highest standards for its customers—something that will help Yamaha drive sales in the current market and in the future.

It’s currently a particularly difficult time in the motorcycle industry in Vietnam due to saturation, some recent economic uncertainty, and a rising interest in cars from consumers with increasing purchasing power. Currently, about 61% of the vehicles in Vietnam are motorcycles. But cars will not be able to fully replace motorcycles due narrow passages, housing density, and high vehicle tax barriers.

FZ150i brand ambassador, singer Tuan Hung was present at the event and delivered some remarks about his opinion on the Yamaha brand and its products.  Mr. Hung mostly spoke about his affinity for Yamaha’s sporty designs and how he thought they contributed to the brand’s success here in Vietnam. Afterward, fans were able to take photos with him in the showroom and outside on the sidewalk.

During the event there were different elements of Yamaha operators, each fulfilling a different role: promotion girls to attract attention to the products, ao dai girls to greet the event guests, Yamaha Grande girls to parade through Hanoi, and sales girls to answer questions from potential customers.

The event wrapped up with a parade of at least twenty Yamaha Grande scooters led by Mr. Masaru Ono, who also had the pleasure of owning the first motorcycle sold at the new dealership. He then proceeded to don proper riding gear in front of the showroom and took off in a southerly direction through the streets of Hanoi.

Yamaha’s Local Operations

Honda is Yamaha’s main competitor in Vietnam. Whereas Honda can leverage its economies of scale, and expertise in the automobile and other markets, Yamaha focuses specifically on motorcycles segments and connecting with its customers.

One way that Yamaha Motors Vietnam engages its customers is through a customer relations management (CRM) program based on three month intervals. It uses call centers to directly contact their customers in order to remind them of service dates and intervals. The service technicians also use stickers that are placed in the storage compartment of motorbikes (under the seat) so when getting gas the customers are reminded of the next service date as well. Because of these different methods of engaging consumers, the average Yamaha product has a seven year lifespan.

In terms of training and customer service, Yamaha Motors Vietnam’s technicians go through a training program to eliminate technicians with poor attitudes and/or a lack of soft skills. This training program ensures that graduated technicians will be able to deliver consistent experiences at every showroom, thereby resulting in satisfied customers. In order to be selected for the training program, technicians need to have at least a basic understanding/basic training of technical know-how.

Yamaha Motors, like many corporations, has a global strategy but largely relies on country organizations like Yamaha Motors Vietnam to implement local initiatives. For example, Yamaha Motors Vietnam has a specially modified caravan that goes into small towns across Vietnam. During local weekend events thousands of Yamaha riders will attend and receive free oil changes and other perks.

These local community support events are important because some motorcycle (and bicycle) riders do not perform basic maintenance on their vehicles, resulting in a smokescreen behind them due to burning oil or screeching brakes when stopping–so these sort of initiatives are imperative to keep the products functioning properly on the roads. Nine complimentary oil changes are included in the sticker price and every Yamaha product that is sold has a three-year warranty or coverage for up to 30,000 kilometers—whichever comes first.

All of Yamaha Motors Vietnam’s production is in northern Vietnam. Yamaha Motors Vietnam has about 7,000 factory workers spread across three factories in the surrounding areas of Hanoi. One factory produces spare parts and two are dedicated to the assembly of Yamaha Motors products. Additionally, about 200 marketing staff work out of an office in Hanoi.

A 15 Year Legacy and Positioning for the Future

When Yamaha entered the Vietnamese market, it initially made a big push in Saigon because the surrounding cities would and did end up following the trendsetting Saigonese. In Vietnam, Yamaha Motors Vietnam is positioned as sporty brand, targeting the young males consumer segment. Since Yamaha entered the Vietnamese market in 1999, it has used its sporty designs, sporty engines, and key local influencers to attract and maintain the attention of young Vietnamese men. Its tagline: “Revs your heart” and its byline on advertising, “Fun injected” (a play on words for “fuel injected” or the primary way fuel is delivered into engines), reflect this sporty and playful brand positioning.

Other foreign motorcycle/scooter brands have an easier time to target Vietnamese consumers because of consumer perceptions of higher-quality foreign products. For example, Piaggio is a go-to brand for women interested in scooters because Vietnamese consumers prefer American and European brands over even some foreign Asian brands.

Since Yamaha is not viewed as a luxury brand in the Vietnam market, it needs to focus specifically on certain motorcycle segments and leverage its competitive advantages. In part, this foreign preference is due to a desire for larger engines and models—which can present some challenges for operators with smaller bodies who are essentially sacrificing vehicle control for image. This example is one key difference that distinguishes the Vietnam market from even other markets in Asia.

In fact, Vietnamese consumers are so different compared to other consumers in Asia-Pacific region that Yamaha launched a product specifically for the Vietnam market, the Yamaha Grande. Previously, it had tested some Indonesian models in Vietnam but they were not that successful with consumers. Between markets, several elements can be changed such as the engine timing, shift points, throttle sensitivity, etc. For example, in other markets such as Malaysia, drivers like to go (and can go) faster on roads (partly due to better infrastructure).

The Yamaha Grande is specifically designed for women who like scooters. It took two years to develop the Grande, which was released over the summer. With the Grande, Yamaha now offers nine models to serve the Vietnamese market. For its Yamaha Grande marketing campaign, Yamaha enlisted prominent celebrities such as Ho Ngoc Ha to target and connect with women. In its message, there is a clear Paris influence (promoting foreign luxury elements) that is evident from its video promotion to the outfit on its Yamaha Grande girl riders—all of which is done in-house.

We were surprised to find out that the company puts on over 200 events per year—and it’s usually closer to 300 events per year with about 20 big events such as the grand opening of the showroom. Recently, Yamaha teamed up with Elite Model Look Vietnam 2014 in a quest to find the best model talent in Vietnam. During a “Thanks Party” held in Hanoi, the Yamaha Grande was prominently featured in the event, including a $20,000 version outfitted with Swarovski crystals.

The exposure from Elite Model and Fashion TV (who had correspondents at the party) will positively impact Vietnam’s image on local, national, and international levels by instilling national pride in Vietnamese and exposing new people around the world to the beauty and potential of Vietnam. If Yamaha continues these clever kinds of cross-promotional events then it will surely be able to capture the hearts of women in addition to its success of attracting thrill-seeking men in Vietnam and beyond.

Startup Weekend Hanoi 2014

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It started off with 220 online applications and eventually organizers selected 70 people to participate in the Startup Weekend Hanoi held at Hub.IT from August 29 until August 31.

While there were no specific themes to adhere to, participants entered one of two tracks: Track A, which included pre-formed teams of three-to-five people and Track B, which consisted of pitch ideas from individuals who could be joined by others to form a team if his/her idea was was approved by the audience.

Startup Weekend was created in Vietnam in Ho Chi Minh City in 2011 and then expanded to Hanoi in 2013. This year the organization aims to open two chapters: one in Da Nang in central Vietnam, and another in Can Tho, in the Mekong Delta. Last month, the event was held for the second time this year at Hub.IT.

Hai Nguyen, an organizer of the Startup Weekends in Vietnam, shared with us that the aim of the events is not only to nurture and foster innovation and entrepreneurship in Vietnam but to also promote the empowerment of Vietnam’s strength sector, e.g., agriculture, through technology.

The opening session of the Startup Weekend started on Friday at 6:30 PM and lasted until about 8:30 PM. Each participant had one minute to convince the audience that his/her presented idea should be one of the final group selected by popular vote (with Facebook “Thumbs-up” stickers placed on the most-liked written ideas hanging on the wall).

Among the various ideas presented during the initial round but were ultimately not selected by the audience included a mobile payment app, an online ticket website, and a way to repurpose unsold flowers for tea and medicinal uses. One of several recurring themes throughout Friday night seemed to revolve around vegetables and student buffets. And there was even a pitch for an online social network specifically for those born in the 1990s—perhaps a clarion call to start a new social network every 10 years? In all, about 30 ideas were shared but only seven made the cut for each track.

Newly formed and established teams returned the next day to Hub.IT from 9:00 AM until about 7:00 PM where they met with seven mentors to hash out their concepts and to prepare their final pitches for Sunday, the last day of the event. Finally, during Sunday evening each qualifying team had four minutes to present their concept, followed by a four minute Q&A session led by the four-member judging panel.

The Final Teams Presenting

First up was Team BB, which presented a compelling story time application. The team had developed a story creation landscape so that users can create stories with their family or friends. Afterward, a user can record his/her voice which is then overlaid on the story timeline. There are some quite exciting potential case uses for this technology. For example, parents can use the app to connect with their children even if they are on the road or away from home or a group of friends can get together to create a story during a reunion.

Next up was OnTot, an online tutoring service that creates a marketplace for students and potential tutors. When asked by a judge if the model was scalable, the team leader responded that he believed it could be used in the region in a country like Thailand or the Philippines. While parents may be interested in using an online tutoring service for their children, it’s unclear if students, especially younger children, will use such a service effectively. The team leader did point out that the team can launch the service in a month (although it wasn’t clear if it would be a funded or bootstrapped version) so it will be interesting to see what happens next for OnTot.

The next team presented marketing solutions software for small and medium businesses (SMB), called Beeketing. In short, the software automates the marketing process and suggests a range of tactics for a business owner to implement. It definitely could help some nascent online businesses to get the word out about their products or services or to help differentiate them from competitors. A judge asked how the service would retain customers as their knowledge of marketing improved and proposed tiers like Beeketing 1.0, 2.0, etc. to effectively approach consumers on their marketing knowledge platforms. This tiered servicing makes sense for Beeketing to meet the different needs of its customers.

One traditional concept that was presented was part-pastry shop and part-dessert distributor, Hy Hy Kitchen, named after the creator. It’s basically a handmade treats online kitchen with (at least) a single brick-and-mortar aspired location. Based on the four judges reactions, it was clear that they admired Hy Hy’s enthusiasm and gumption for her concept of “any dessert, all delivery.” Ms. Hy Hy explained the nomenclature behind her concept and told the audience that she wanted people to order Tiramisu, and to associate it with “forget me not.” We certainly won’t forget the delicious-looking photos you showed of your products.

Next up was Olymsearch, which is currently in Alpha stage of development. It was one of the few working products that were presented at the Startup Weekend Hanoi 2014 and it positioned itself as the go-to service for a personalized shopping experience. According to the Olymsearch team, the online platform is a combination of Google, Facebook, and E-Commerce all mashed up into one. The difference here is that Olymsearch is looking to fill the local e-commerce needs of Vietnamese.

AnGiNgon is a listing site for food, and is also geo-location based. Imagine checking the app to see what food options are nearby when you step out to lunch. Perhaps it is loosely based on Yelp, but what problem is the app solving? And for whom? The majority of Vietnamese consumers are extremely preferential and rely heavily on family and friends for a variety of suggestions on where to go to eat, drink, and shop.

Team OIC presented an indoor mapping solution—a service that could be offered at a mega mall like Vincom’s Royal City. The service would be able to direct users to stores that they are interested in and also provide information about on-going promotions at various retailers. The team was one of the few that utilized the dual presentation screens. The promotion portion sounds great but unless they are exclusive promotions for the app users then it may be hard for the app to gain traction.

VNspace.vn is a way to help homeowners design the interior of their homes. It’s definitely geared toward modern and trendy Vietnamese since a large component of Vietnamese decor is how ornate, or big, or traditional an item can be—usually sourced locally. VNspace.vn looks to partner with name brands in order to promote and offer their products. As Vietnam continues to modernize perhaps VNspace.vn or a similar service can fill a growing need. The site is currently in a closed beta.

Occupy Buildings Project—no, not a political movement but rather a system for utilizing rooftops to grow vegetables and other leafy greens. The team even had an irrigation demonstration to show the judges how the watering system would work. One possible way to monetize the idea was to share some of the revenue with the building owners from the sale of vegetables or whatever greens that were harvested on the roof. As one judge rightly pointed out, it is a vision of the future, perhaps 20 years ahead of its time. It’s definitely a long-term project but it could substantially transform the way ecology and business is viewed in Vietnam.

VipiOne is a negotiation service that acts on behalf of those seeking to buy a residence in Vietnam. However, it’s not clear why someone would use the service instead of negotiating him/herself. It’s also not clear why a potential homebuyer would trust the young founders to carry out the transaction.

Last but not least was Fit n’Grit, a personal trainer app. The two concept creators are currently offering personalized fitness tracking—and already have clients. The pair of friends are fitness enthusiasts who are in their last year of university where they are studying accounting and finance. The kernel of the idea is good and there’s definitely a need for proper fitness training and nutrition education—too often gym-goers are seen cranking out sloppy rapid-fire repetitions to the beat of the Vinahouse music.

Yes, there are personal trainers available in some gyms but at western prices and one-to-one personal sessions don’t scale well. We suggest that the Fit n’Grit team start by providing value on social media to create an online community ready to try out their app whenever it may be ready. Another approach could be to partner with independent gyms to provide an introductory training session (and share fees with the gym) and at the same time the team could collect contact and demographic information.

The Winners and Looking Forward

OIC and BB team emerged as the winners when the judges’ scores were finally tallied. The winners of Hanoi’s Startup Weekend event will head to Saigon to participate in Demo Day organized by StartUp.vn and Business Startup Support Center on September 12. The winners of the DemoDay will head to Seoul, ROK, where $100,000 will be on the line at the Startup Nations Summit 2014 from November 23-25.

Bobby Liu, judge and founder of Hub.IT, where the event was held, felt that this time around had a lot more solid ideas from startups and the split into two divisions was fair to the participants. On behalf of Hub.IT, Mr. Liu stated, “we’re obviously glad that we could support such a significant initiative and look forward to doing more.”

There are definitely some exciting times ahead as the BB and OIC teams represent Hanoi at Demo Day Saigon. It was also great to see the variety of the initial ideas presented to the audiences during the Friday night portion of Startup Weekend Hanoi. For some ideas, the matter is a question of timing. For others, it’s a matter of finding suitable ways to execute the idea. And for another segment of ideas, they just need some time and love to either develop or discard. No one has a monopoly on good ideas—and with the support system and effective platforms in place in the startup communities of Vietnam, the ideas coming from entrepreneurs, coders, and young Vietnamese can be turned into sustainable and scalable business models.

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.

Current Perspectives of Vietnam

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

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

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

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

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

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

 

Flying The Nest

Who? An American English teacher expat in Saigon

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

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

You should check out this post.

 

Why Am I Here?

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

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

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

You should check out this post.

 

Because We Camp

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

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

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

You should check out this episode.

 

My Seasons In Saigon

Who? A former American university president.

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

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

You should check out this post.

 

World Economic Forum Blog

Who? From current Prime Minster Nguyen Tan Dung.

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

Why? Self-explanatory.

 

Welcome To Vietnam

Who? From an American political writer.

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

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

 

Graduate of the Year

Who? NY Times writer Nicholas Kristoff.

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

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

 

Expat Diary: Saigon

Who? A nomadic photographer.

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

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

You should check out this post.

 

SoJournaling Vietnam

Who? A younger American Viet Kieu.

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

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

You should check out this clip.

 

Departures. Vietnam.

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

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

Why? Come on, it’s National Geographic.

 

And finally, from the perspective of a drone.

 

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

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

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

Opened in October, 2013 by the owners of SIN Lounge and The Living Room.

Vietnamese Music Trends

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The music scene here, like many things in Vietnam, is constantly changing. Traditional, pop, and electronic music all fuse together to take new forms, create unique sounds, and propel sub-cultures forward. While Vietnam has had its own flavor of electronic music, known as Vinahouse, it seems as if the global EDM craze is finally beginning to take a hold here with underground events leading the charge.

Late last year Steve Aoki performed for the first time in Hanoi (during his first trip to Vietnam) and then proceeded to celebrate this year’s Tet holiday with a show in Saigon. And earlier this year, Wally Lopez came back to Blanchy’s Tash in Saigon after his first time the year before. Now, Hardwell is the latest house music DJ scheduled to come to Vietnam for the first time ever as part of his “I am Hardwell” tour. Hardwell will be playing in Saigon’s Quan Khu 7 stadium on September 28 and General Admission tickets are currently on sale for 600,000 VND (approximately $30). VIP, VVIP, and CA tickets are also available.

[Update August, 2015: Zedd recently played in Ho Chi Minh City and Skrillex is scheduled to play in both Ho Chi Minh City and Hanoi next month.]

The larger-than-life style of music that is presented by Steve Aoki, Hardwell, and their contemporaries is full of high-intensity and high-energy beats and rhythms that lead into a “drop” where the crowd is simultaneously jumping or fist-pumping in unison. This variety of house music is growing in popularity with young and trendy Vietnamese here where most of the electronic music heard takes the form of Vinahouse, a hard-hitting, repetitive beat that continues until the end of a song.

Rumored to have originally been a Russian intro beat (lasting for no more than 30 seconds), the steady thumping seems to have captured the hearts of Vietnamese electronic music enthusiasts as they extended it to last the entire length of a song. Vinahouse can be heard everywhere: gyms, discotheques, and even street shops blare Vinahouse through speakers set up on the sidewalk in an attempt to draw a passerbys’ attention.

Actually, most of the music that can be heard in the streets of Vietnam’s cities comes in two styles: Vinahouse, or more traditional and soulful Vietnamese songs that usually have a somber deliverance. As in much of Asia, karaoke is popular here and citizens will sing karaoke in their homes with the volume turned way up for their neighbors to hear in the early to mid-evening. Some entrepreneurs have even set up portable “karaoke stations” on wheels where they can serenade diners on the sidewalk while they eat in exchange for a donation before moving on to the next group of diners.

The Music Scene in Vietnam

The music scene here is a far cry from the days of CBC Band. If you happen to go to any establishment where pop music is played then you will definitely hear Flo Rida’s Whistle at least once and perhaps several times per night. You might also hear variations of other American techno-remixed pop songs in some of the nightlife institutions of Saigon such as Lush, Apocalypse, and if you are unlucky/unsober enough to end up there, GO2 Bar on Bui Vien in Pham Ngu Lao. However, there are also Vietnamese clubs like Canalis and New Saigon where strictly Vinahouse tunes are blasted at dangerously high levels and patrons are dazzled with light arrays, lasers, and strobes while inhaling copious amount of cigarette smoke. Occasionally, some foreigners are mixed in with the crowd but the customers there are overwhelmingly locals.

Some of the more progressive and alternate locations for music other than remixed Billboard Top 20 hits and/or Vinahouse include Broma, Bootleg, and The Observatory in Saigon; and Cama ATK, Madake, and Rockstore in Hanoi. There are also small but growing communities comprised of lesser-known genres of music like DubStep and Drum and Bass (DnB). For example, Saigon Beats and Heart Beat Saigon are two organizations comprised of music enthusiasts who passionately promote new and different kinds of music and sounds in Saigon.

For live music, there are a number of options for covers and original performances. For example, bar chain Seventeen Saloon (present in Hanoi and Saigon) features live music (mostly rock) on a regular basis. And original acts such as Mai Khoi take the audience on a wild, sensual, and bilingual journey that pushes boundaries in what is perhaps one of the best live performances in Southeast Asia.

In terms of larger events, full blown music festivals such as RockStorm (a rock festival, as the name implies) and the HEC KPOP festival can appease fans of those genres–or headliners can opt for music venues such as Cargo in Saigon and Hanoi Rock City in Hanoi.

Vibration Festival: 24 Hours of Good Vibes

Interestingly, a growing trend in Vietnam is that of the “micro” festival whereby events are organized and operated in a gray legal area and the events lends itself to be more of an infusion of creative expression rather than cranking out popular hits while patrons in the VIP section post real-time photos on Facebook. Names like Eden, Quest Festival, Halloween Escape, Hanoi Sound Stuff, and A Dose of Escape all conjure up images of partying, dancing, and good times.

[Update August, 2015: Quest Festival V will be held in November, 2015.]

One such event was the Vibration Festival, which we attended last weekend. The festival was located about 10 kilometers outside of Hanoi at the nearby Minh Hai resort. The event started at 2:00 PM but we arrived around 9:00 PM and stayed until about 1:30 AM. By the time we arrived the bia hoi (literally, “fresh beer”) had run out so only shots were available at the bar. Our tickets were 100,000 VND (approximately $5) each but were double the price at the door for those who didn’t buy tickets in advance. Approximately 10 DJs were on the lineup with each playing a variation of some genre or sub-genre of electronic music. It was hot but the mood was pretty festive especially after midnight. The food was provided by a local company, Highway 4, and appeared to be almost artisan in presentation.

Americans, Canadians, French, British, and, of course, Vietnamese (plus other nationalities) were dancing under a full moon partially obscured by rolling clouds. By 10:30 PM the dance floor was full with a crowd that seemed to be about 85-90% westerners. Organizers estimated that around 300 people attended the event.

We had the opportunity to speak with the main organizer, an Irishman who goes by the moniker Bad GraFX. Like many expats, he now does something totally different than what he originally came to do in Vietnam. He started organizing events like Vibration Festival in order to have a good time and to be able to listen to the kind of music he and his friends wanted to hear.

The overall atmosphere at Minh Hai resort was relaxed and the heat didn’t seem to take the wind out of the sails for most people. Still, 24 hours of partying is intense, especially in the hot summer sun so it will be interesting to see the second iteration of the Vibration Festival and its changes, if any.

Music “And More” Festivals

Some people might not like mainstream musical acts as part of the western export “package” to developing countries because it overshadows local and independent artists. But getting globally recognized talent to perform in Hanoi or Saigon also raises Vietnam’s profile as a growing destination for international music genres and its fans–and it also potentially introduces locals and expats to new kinds of music. One thing is certain: these commercial headliners, micro festivals, and branded events will continue to shape Vietnam’s music scene as artists, musicians, and enthusiasts seek outlets for creative expression here in Vietnam.

We would love to see a major electronic music festival with global and local names playing across different stages. Perhaps this vision could be realized in Da Nang due to the international airport and accessible coastline. Beautiful Hoi An is nearby which could also benefit from the overflow of a festival. And there is even space for such an event, in the former American airbase. Before that can happen, perhaps the next step in Vietnam’s evolving music scene is to combine music with film or interactive tech a la SXSW, MOSO, or Incubate (albeit on a smaller scale) whereby the music, art, entrepreneur, and tech communities can meet and merge to share views and exchange ideas. For sure, a Vietnamese mash up of those domains would be raw, unpredictable in its specific outcomes, and overwhelmingly positive in its products.

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!