When one thinks about countries known for making waves in terms of startup activity, Vietnam probably isn't going to immediately come to mind. It should, however, as the country has long since shed its troubled past, and has positioned itself as one of the emerging players in the global startup scene.
If a business is looking to this part of the world for potential international expansion opportunities, Vietnam is certainly a candidate worth considering. To put it bluntly, the startup scene in Vietnam in 2019 has a lot to offer.
Doing Business with Vietnam Startups
Maybe the most important thing to understand about the current state of the Vietnam startup scene has to do with its unquestionably pro-business culture. A full 95% of the Vietnamese population fully supports free market capitalism—a number higher than in the United States. Vietnam also has varied, educated demographics. Of the 95 million people who live there, a full 40% of them are under the age of 25, and they are educated, passionate about social issues, and more than ready to get to work.
Vietnam is also a very connected country, with Internet penetration currently sitting at 52%—a figure that is only going to rise over the next few years. Likewise, mobile usage growth recently hit 152%, and 58 million of the country's residents are active on social networking sites like Facebook.
The Potential of the Vietnamese Startup Workforce
Vietnam's business culture would be reason enough for many organizations to consider it a prime target for international expansion. Moreover, it also has the rock-solid workforce to back that business culture up.
Vietnam is known for many things, including its strong math education and its high-quality talent pool of developers. This makes it an incredible opportunity for not only businesses in the tech field, but also in terms of BPO outsourcing opportunities as well. It should be noted that Vietnam has also proven itself to be further dedicated to developing its STEM fields (science, technology, engineering and math) and has recently developed a major university in Hanoi in response. Fulbright University also recently added a campus in Ho Chi Minh City.
With regards to the most popular startup opportunities in the country, those centered around Fintech, food technology, and e-commerce are certainly proving to be the most viable in the short-term. Likewise, many factories are being moved to Vietnam from China (and will continue to do so over the next few years) due to the wide range of different opportunities offered by the former with which the latter cannot compete.
Cultural Considerations in Vietnam
When it comes time to choose a city in Vietnam to expand operations, the two top candidates are undoubtedly Ho Chi Minh City and Hanoi. Ho Chi Minh City is known for many things, including its reputation for being the country’s technology hub. While the area is certainly more entrepreneurial than Hanoi, it is also far more bohemian at the same time.
Hanoi, on the other hand, maintains a strong government presence. It is very conservative because of this, and it is known for its positive outlook in terms of financial services in particular.
Expand into Vietnam with a Partner Who Knows Its Market
With a growing number of startups, a young and educated population, and economic conditions that undoubtedly play a role in attracting foreign businesses and investment, Vietnam has much to offer organizations eyeing Asia as part of their global expansion.
Whether you choose Vietnam or one of the other 185 countries in which we operate as your global expansion destination, doing so with the right partner makes all the difference. Velocity Global's Employer of Record solution can have you up and running in your new location in a matter of days—with no need to setup an entity. But Velocity Global’s expansion experts go beyond handling compliance considerations and help you better understand the market into which you’re expanding and its culture—a key consideration for ensuring a smoother transition into Vietnam.
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