Social Republic of
Viet Nam
• Area: 331,210 sq km
• Coastline: 3,444 km
• Population: ~ 100 mln
• Workforce: ~55 mln
• GDP: $220-$250 bln
• Agriculture: 15%
• Industry: 33%
• Services: 52%
• GDP Growth (2020): 2.91%
• GDP per capita: $2000+
• Commercial lending rate: 8% p.a.
Golden
Population Structure
• Young, enthusiasm, and dynamic
• Low Uncertainty Avoidance (Hofstede: 30/100)
• Critical role of education system in building entrepreneurial mindset
• Pools of talented engineers… just lack of startup/business founders.
• Generations:
• 70s; 80s; 90s, Xs, Zs
Hofstede’s Insights
Confucianism in Vietnam
Hierarchy: Social Ranking: “Sĩ – Nông – Công – Thương”
(Gentry scholar/Intellectual Official – Farmers – Craftsman –
Trader/Businessman)
Face-saving: “Fail fast, Fail often, and Fail cheaply”
Relation-based business: personalize business relation
The hidden entrepreneur’s aspiration to become non-entrepreneur
Quantity that matters
Startups: 3,000+
Entrepreneurship Support Organization: 1,400
VCs: 100+:
o Increasing numbers of domestic VCs (20+)
Incubators: 69 (43 in universities)
Accelerators: 28
Coworking spaces: ~200
Networks of mentors and angel investors:
o Micro VCs
Shifting from quantity to quality
Agritech in Viet Nam:
Greenfield
• Agri-export in 8M.2021: $32.1 B
1. USA: 29.1%
2. China: 18.9%
3. Japan: 6.8%
4. Korea: 4.3%
• Need more technology applications
• Entrances:
GRAFT
52/63 municipal governments (entrepreneurship and innovation
development schemes and programs)
Business associations
Leading corporations
Central agencies:
o MOST: TechFest & Tech Demo & Techmart
o MoIC: Digitalization
o MPI: Innovation
Ha Noi Capital City
• Population: 8 – 10 mln
• GDP: $38 bln
• GDP per capita: $4000
• Pace of Biz: Low-Moderate
• Advantage: Pool of talents, strong universities;
product-focused
• Satellites:
• Hai Phong
• Bac Ninh
• Thai Nguyen
• Central Gov:
• MOST: 844, NSSC
• MPI: NIC
• MoIC
• City Gov: New startup support program
• CoWorking Spaces: Cogo, Up, many others
• Incubators & Accelerators:
• State-run & university-based
• Topic FI, ThinkZone, Rehoboth, VSV
• Local Investors: conservative
Da Nang – the Hub of
Central Region
• Population: 1.5-2 mln
• GDP: $4.3 bln
• GDP per capita: $3,865
• Pace of Biz: Moderate; direct
• Advantage: Hidden charms
• Relatively low cost of living
• Expat community; tech nomad
• Outward positioning
• Satellites:
• Hue
• Quang Nam
• Quang Ngai
• Central Highland
• City Gov: Regional Hub of Innovation
• CoWorking Spaces: Surf Space, and others
• Incubators & Accelerators:
• DNES
• Song Han Incubator
• Local Investors: still early
Ho Chi Minh city – the
Engine of Economic Growth
• Population: 13+ mln
• GDP: $58 bln
• GDP per capita: $6,430
• Pace of Biz: Fast; risk taking
• Advantage: economic hub; market-oriented
• Satellites:
• Binh Duong
• Dong Nai
• City Gov: Startup Exchange, Startup Runway Programs
• CoWorking Spaces: Up, Toong, Dreamplex, Circo,
others
• Incubators & Accelerators:
• State-run & university based: SiHub, SHTP IC, ITP
• BSSC, VIISA, Sao La, Startup Zone, Shinhan Lab..
• Local Investors: active
Power distance: Vietnam scores high on this dimension (score of 70) which means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organisation is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat. Challenges to the leadership are not well-received.
Individualism: Vietnam, with a score of 20 is a collectivistic society. This is manifest in a close long-term commitment to the “member” group, be that a family, extended family or extended relationships. Loyalty in a collectivist culture is paramount and overrides most other societal rules and regulations. Such a society fosters strong relationships, where everyone takes responsibility for fellow members of their group. In collectivistic societies, offence leads to shame and loss of face. Employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion take account of the employee’s in-group. Management is the management of groups.
Masculinity: Vietnam scores 40 on this dimension and is thus considered a Feminine society. In Feminine countries the focus is on “working in order to live”, managers strive for consensus, people value equality, solidarity and quality in their working lives. Conflicts are resolved by compromise and negotiation. Incentives such as free time and flexibility are favoured. Focus is on well-being, status is not shown. An effective manager is a supportive one, and decision making is achieved through involvement.
Uncertainty Avoidance: Vietnam scores 30 on this dimension and thus has a low preference for avoiding uncertainty. Low UAI societies maintain a more relaxed attitude in which practice counts more than principles and deviance from the norm is more easily tolerated. In societies exhibiting low UAI, people believe there should be no more rules than are necessary and if they are ambiguous or do not work they should be abandoned or changed. Schedules are flexible, hard work is undertaken when necessary but not for its own sake, precision and punctuality do not come naturally, innovation is not seen as threatening.
Long-term Orientation: Vietnam scores 57, making it a pragmatic culture. In societies with a pragmatic orientation, people believe that truth depends very much on situation, context and time. They show an ability to adapt traditions easily to changed conditions, a strong propensity to save and invest. thriftiness and perseverance in achieving results.
Indulgence: A low score of 35 on this dimension indicates that the culture of Vietnam is characterised as Restrained. Societies with a low score in this dimension have a tendency to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained societies do not put much emphasis on leisure time and control the gratification of their desires. People with this orientation have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.
1- Startup: innovative + high growth. Still need to improve awareness more sophisticated
2- Incubators + Accelerators: public, PPP, private. domain focused: fintech, tourism, agriculture, tech-startups
3- Coworking spaces: mushrooming, real estate business
4- VCs + Investment Funds: active, more money is coming to Vietnam. More Vietnamese VCs, pre SeriesA (<$1M). Legal challenge is OK. Deal flow
5- University-based program: early stage
6- Mentors: many and more Should access to them.
7- Angel investors: tech focused, successful founders; traditional investors is learning about angel investing. More micro VCs than angels