Why Vietnam Will Be the Growth Driver Of SEA’s ‘Startup Golden Triangle’
Vietnam’s middle class is growing rapidly. By 2020, the country’s middle class is expected to reach nearly 50 percent of its population. That means a lot of potential customers for businesses. As a result, many companies are expanding into the market. Many are also investing in technology to help them grow.
Singapore, Indonesia and Vietnam are all very different places, but they share one thing in common: they are all growing rapidly. Singapore is an island city-state with a population of 5.6 million, Indonesia is the world’s fourth most populous country with 264 million inhabitants and Vietnam is a landlocked nation with a population of about 90 million. These numbers are expected to grow significantly in the coming years. All three countries have strong economies and relatively low unemployment rates. And each has a vibrant entrepreneurial culture. But what sets them apart is that they are also home to some of the world’s fastest growing unicorns.
Vietnam is an emerging economy with a rapidly growing middle class. As a result, there is a huge demand for mobile phones, internet access, and other technologies that will help them stay connected. The country also has a large number of college graduates, many of whom are tech savvy. These factors combine to make Vietnam a great place to start a company.
Vietnam’s startup ecosystem has reached an inflection point. The country’s rapid economic development, combined with its relatively low cost of living, has made it easier for startups to grow quickly and scale internationally. The government has also taken steps to help entrepreneurs get funding and access markets. These factors have driven the country’s startup ecosystem towards an “inflection point”, a favorite spot for VCs. It’s a point when startup growth accelerates even further, fundamentally changing the growth curves, and Vietnam’s entire startup ecosystem now seems to be reaching that stage – something that hasn’t happened before. Recent government figures show the rate of enterprise formation during the first four months of 2020 was up 32% compared to the same period in 2019.
Vietnam is big nearly 100 million population and it’s a young nation, with a median age around 32 years old versus 38 plus in the United States and China. For over 30 years, GDP has been growing steadily at a compounded annual growth rate of 5-7 percent. Further, Vietnam’s literacy rate is very high at 95 percent, and there is a high level of tech literacy. The number of mobile phone users outnumbers the total population. Cyber security is well-developed and many citizens are using social media to communicate during the COVID-19 lockdown. E-commerce and online games are now embedded in daily life.
Meanwhile high end contract manufacturing has multiple impacts on the economy. Apple AirPods were once assembled in China, along with half the production of the world’s leading phone manufacturer, Samsung. Now operations like these provide blue collar jobs to the emerging middle class. These factories also stimulate the building out new infrastructure, and they create a country where software engineers can work alongside people who know hardware, supply chain management, and more.
Vietnam is an emerging market economy with a growing middle class. Its GDP growth rate is expected to reach 6% per year until 2025. The government has taken steps to increase foreign investment and reduce red tape. Foreign direct investment reached $1.4 billion in 2020, up from $0.7 billion in 2016. The number of foreign investors grew from 5,000 in 2016 to 17,000 in 2019. The government also made it easier for foreigners to invest in local companies. Vietnam’s stock exchange saw its first IPO in 2017 and there were 1,500 IPOs last year. In addition, the government has launched programs to encourage entrepreneurship, including tax breaks for start-ups and subsidies for entrepreneurs.
We try to hire people who are optimistic about what they can achieve, but we also ask them to think critically about their own beliefs and assumptions. We encourage them to be wary of their own biases and blind spots, and to be honest about how they might be wrong. That helps us all become better thinkers and problem solvers.
Vietnam is an emerging economy, and its success will depend on its ability to create jobs and increase economic activity. Education is very important to Vietnam because it provides opportunities for young people to get educated. There is a high demand for education among employers, especially in the tech industry. A lot of companies are investing in education because they want to hire qualified employees. The government also invests a lot in education. The government spends around 4% of GDP on education. This is higher than other countries like Singapore, Malaysia, and Thailand.
The second reason why women entrepreneurs should be supported is because they bring an innovative perspective to problems. Diversity is important when it comes to solving problems. Different perspectives lead to different ideas and solutions. If you’re not diverse, then you won’t get any ideas. You might think that your idea is great, but if you’re all men, you’ll never realize that there are other ways to solve the problem.
The third element is raw enthusiasm and hustling. Whether it’s from an early stage startup founder or a young food entrepreneur opening a Banh Mi Shop, you see it everywhere. The culture strongly encourages and supports this entrepreneurial passion and hustle. Lastly, Vietnam’s talent pool of software developers is unparalleled around the region. Much can be attributed to education but also to the diaspora of Vietnamese abroad. Emigrant and their kin living overseas has set up a robust outsourcing frame work much like we saw in china and india in years past, providing opportunity for local talent to cut there teeth on global software products
Vietnam is a country that is growing fast. There is a lot going on here, both positive and negative. One thing is certain though: there will always be room for new ideas and innovations. And if you’re lucky enough to get started early, you could become a leader in your industry.
Vietnam is an emerging market economy, and its GDP growth is expected to accelerate from 5.5% in 2017 to 6.5% in 2018. Its population is also growing rapidly, reaching almost 90 million people by 2020. As a result, there will be a huge demand for goods and services in the coming years. That means opportunities for startups to grow quickly.