Vietnam startup landscape ranks third in the South East Asia and foreigners rank Ho Chi Minh city as “the world’s best tech start-up hubs. If you are a Norwegian looking for a place for setting up your tech startup or just for tech-outsourcing, why not come to Vietnam?
Vietnam will soon put its name on the global tech-map, not only because of US$ millions from venture funds investing in tech startups, but also because of the millions of young Vietnamese talented coders.
Startup in Vietnam
Recently, “Tech-startups” has been among the hottest topic in Vietnam ever. One strike with google search “startup” gives us 952,000 results after 0.9 second. Vietnam tech-startups are driven by the country’s talented young brains and the under-tech-served nation of 92 million population, 50 million internet users, and 45 million smartphones users.
The well-known successful tech startups in Vietnam include VCCorp, VNG, MoMo, CocCoc and Flappy Bird, the international hit game developed by Nguyen Ha Dong, the Hanoi-based programmer.
Vietnam Tech startups backed by Venture funds
The world may not know much about Vietnam’s tech startups, but the changes taking place within this sector may soon attract the attention of investors and consumers throughout the world.
The tech startups in Vietnam began over ten years ago when a number of aspiring companies were funded by IDG Ventures Vietnam, a firm managing US$ 100 million and billing itself as the first technology venture capital fund in the country. Startups from this time period include VCCorp, VNG, and Vat Gia. These companies now exist as a strong foundation to build upon for the new and upcoming companies in Vietnam.
Besides IDG Ventures, there are a variety of other venture capital funds located in Vietnam, a brief sampling includes: CyberAgent Ventures, OneCapitalWay, and DFJ VinaCapital. The beginning of this year, financial powerhouses Goldman Sachs and Standard Chartered PLC raised their investment in the operator of e-wallet MoMo by $28 million, while Silicon Valley-based venture capitalist 500 Startups announced a $10 million Vietnam-focused fund.
Homegrown Young talents
Of particular interest to venture capitalists, however, is Vietnam’s tech-savvy population with a median age of just 30. “Vietnam has the highest-performing computer science students I’ve ever encountered,” said Neil Fraser, a software engineer at Alphabet Inc’s Google, who visited local schools.
The Organization for Economic Co-operation and Development ranks Vietnamese 15-year-olds above peers in the U.S., Australia and Britain in science and maths. Every year, Vietnam provides approx. 32,000 graduated programmers to the market, which come cheaper compared with China or Singapore.
Moreover, thousands more young Vietnamese teenagers, who are lifted up by the great success of Flappy Bird, will materialize their dreams of being programmers in the time to come. These talents will sooner put Vietnam in the global tech-startup map.
Ho Chi Minh City – The world’s best tech start-up hubs
If you are looking for a place for setting up your tech startup, you should come to Hochiminh city, where you find a unique start-up culture, great value, a good climate and a solid entrepreneur community.
The French President, François Hollande, applauded Ho Chi Minh city’s tech startup environment during his visit to the local Linkbynet’s office: “What strikes me is the global character… it’s Vietnam but it’s a global environment, with global clients,” he said.
People here are hardworking, humor, friendly and tend to be more focused on execution. Everything here is cheap but in high quality: labor, rental, and food. Local salaries for admins to coders range from US$500 – US$2,000/ month. Rental is from US$300/month to US$1,000/month. One could easily live on US$1,500 a month here and live a quite privileged existence in a city where modern meets old.
For more information, please contact:
Hai Anh Tran
Senior Market Adviser, Innovation Norway Hanoi