The Entrepreneurial Ecosystem of Vietnam: A SnapshotTran Tri DungInternational Innovation Business Forum 3Ho Chi Minh city, 2 June 2016

There is always an Ecosystem…Be patient.. Entrepreneurial that matters

The Entrepreneurs• Entrepreneur is anyone with an entrepreneurial spirit:1. Desire to create new value2. Readiness for uncertainty3. Capability to capture and realize opportunity • Pools of talented engineers… just lack of startup/business founders.• 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 relationThe hidden entrepreneur’s aspiration to become non-entrepreneur

• Golden population: the next generation of entrepreneursYoung, enthusiasm, and dynamic Low Uncertainty Avoidance (Hofstede: 30/100)Critical role of education system in building entrepreneurial mindset

Innovation is everywhere

Zing.vn (14 May 2016): $0.018-0.027/kg of salt in Duc Pho, Quang Ngai100gram: $0.909

Beyond tech.. Struggling.. Moving forward

Government• Entrepreneurship development is on national agenda• National Agencies:

• MOST: National Agency for Technology Entrepreneurship and Commercialization (NATEC)• MPI: Agency for Enterprise Development (AED)

• Legal framework• Resources coordination and leverage (?) [Information = Resource/Asset]

Accelerators and Incubators• Accelerators and Incubators (AIs) are not something new in Vietnam. • But a list of AIs with clear supporting programs is not that long:

• Topica FI; Expara; VSVA; BSSC; DNES, BTIC• VIISA; Hatch!Incubation; Innovatube

• Services and support:• Mentoring• Coaching & Training• Infrastructure• Seed financing• Networking

Co-working Spaces: Not new players

Competition? Not at all

Startups help startups startup

The New Yorker’s Cartoon

It is not a problem There are some advantages:

Been there, done that Receptive and Collaborative Ecosystem hubs

Developing/introducing more services to the ecosystem: Incubation and acceleration

programsMentoring services Angel investing networks

Angel Investors • Who?Successful business people‘Professional’ angel investors

• Why?Active investors: profit-making businessFew consider angel investing as charity or give back to community

• How?Individual decision but very often a group of friends and/or business partners

• Challenges: Quality deal flowsLegal issueExit strategy

• Equity funding to early-stage startup companies• Filling the gap between early-stage need and VC deal size• Supporting a much wide range of innovation than VCs

MentoringProven Impacts!3.5X increase in sales growth7 times more likely to raise money

Ecosystem Accelerators• Innovation Partnership ProgramFinish GovernmentMOST

• Mekong Business InitiativeAustralian GovernmentADB

• The Entrepreneurship ProgramSwiss Government

A Call for More Engagement of Corporate Sector• “The business of business is business” – Milton Friedman• How?Source of mentorsSource of fundingCorporate accelerators

• Benefits R&D alternative Investment opportunity Innovative and entrepreneurial corporate culture

1912 -- 2016

Thank you very much!