HCM City (VNS/VNA) - Overcoming human resourcesproblems, understanding local cultures and finding reliable partners are neededfor Vietnamese start-ups to “go global,” the CEO of Grab Financial Group VietnamNguyen Tuan Anh has said.

Speaking at a recentboot camp, a start-up training programme organised by VnExpress.net, Anh saidreaching out to the world was not optional but imperative for a start-up tosucceed.

“You may not go global right away, but you must have a vision to do it in thenext five to 10 years.

“Vietnamese start-ups must conquer the global playground to increase the value,revenue and profit.”

Anh was one of the firstemployees of the giant ride-hailing service when it entered the Vietnamesemarket in 2014 on the heels of its success in four other Southeast Asiancountries, Malaysia, Singapore, the Philippines, and Thailand.

To succeed, start-ups could first start their business in a market in whichthey were familiar to master customers’ habits and behaviours, but later neededto expand markets to other countries.

Going global also helpsimprove the company’s capacity and increase salaries for existing personnel, hesaid, adding that setting a goal to go global demonstrates the potential of thestart-up to attract more investment.

The biggest challenge is finding a right partner. Start-ups that want to besuccessful in a new country need to find a reliable partner.

When a problem arises, a start-up needs to know what is going on and see ifthey really understand the local market.

For instance, when Grab entered Vietnam, it had accepted cash payment for taxiservices, and car and motorbike services while its main competitor hadonly been available to users paying by credit or debit card.

Accepting cash payments was a necessary local adjustment in emerging markets.Making the decision to accept cash payments had been “one of the importantrealisations that Grab came to in Southeast Asia.”

Grab’s success in the Vietnamese market was owed to three factors.
First, when entering HCMCity and Hanoi, it had already had experience in four markets.

Second, it had been willing to deploy new services to meet customers’ needs.For example, it had taken only a month to launch GrabBike, an app-basedmotorbike taxi service, due to the high demand at the time.

“We did not think too much. We just saw the potential for investment and we didit. The market responded very well.”

Third, Grab had entered Vietnam at the right time when its technologyinfrastructure had begun to boom.

“The increase in the number of start-ups has been made possible with a goodtelecommunications system, the Internet, 4G, and improvement in technology andeducation, among others.”

Besides, the habit of using smart devices was increasing and there wasenthusiasm for new technologies among Vietnamese, which too contributed to thesuccess of Grab.

Grab, which has an estimated valuation of 14 billion USD, has become a one-stopapp providing services and solutions for daily needs from transportation andfood to entertainment and seamless cashless payment.

It has also partnered with fintech firm Moca to provide cashless payment viae-wallet. Users in Vietnam can now pay bills, book hotels, order food, and sendparcels from the Grab app.

Experts said Vietnamese start-ups are struggling with internationalisation intheir local eco-system. In Vietnam, entrepreneurs work in a very toughregulatory environment, with few international mentors to support them, theylamented.

But despite the challenges, it is totally possible to build a successful globalstart-up in Vietnam, they said.

The eco-system in Vietnam is still young but has entered the globalisationstage. The country has more than 3,000 start-ups with a third being based ontechnology and the rest on consumers.

Though tech companies sprouted in Vietnam in 2000, it was not until 2016 thatthe country’s start-up eco-system became complete.

In 2017, around 92 start-ups received investments worth 291 million USD. Themost attractive industries for investment have been e-commerce followed by foodtechnology and fintech. 

“In the next 10 years, Grab’s vision will be the same, focusing on finding themost effective solutions to improve the quality of life of people throughtechnology,” Anh said./.