A recent report by the European Union Chamber of Commerce in Vietnam found that a growing number of European startups are interested in doing business in Vietnam’s tech industry. This is great news for Vietnam, as it shows that the country’s software development industry is gaining recognition on the global stage.
This blog post will take a closer look at why European startups are interested in Vietnam’s tech industry. We will also explore some challenges these startups may face when doing business in Vietnam.
Read Also: Customer Experience Vs. Customer Service
Examples of European Startups Interested in Vietnam’s Tech Industry
Here are some European startups that have invested in Vietnam’s tech industry.
Deutsche Bank and SAP AG made their first investments in Vietnam last year, with a total investment value of $500 million for each company. These two world-class financial institutions chose to invest in Vietnam because they believe it is the best place to grow their business. They also see Vietnam as an excellent destination for outsourcing software development projects due to its low-cost labor pool of skilled workers and abundant natural resources such as oil, gas, coal, etc.
Amsterdam-based startup NUON Energy opened two offices in Vietnam, in Ho Chi Minh City and Hanoi. Their goal is to tap into Vietnam’s sizeable potential market for solar energy. NUON Energy has also announced plans to invest up to $50 million in Vietnam over the next five years
British startup Swiftkey, the developer of the popular Swiftkey keyboard app, made its first investment in Vietnam in early 2016. The company plans to use the country as a base for expanding its operations into Southeast Asia. Swiftkey has already hired several Vietnamese engineers to work on new features for their app.
French startup company BlablaCar invested $40 million into Vietnam in 2017. The ride-sharing service aims to capture 50% of all rides within two years with its expansion plan in Vietnam, including opening up offices throughout major cities, including Ho Chi Minh City and Hanoi.
Similarly, the French startup BlaBlaCar is also looking to invest in Vietnam’s tech industry. BlaBlaCar has already invested $500,000 in a Vietnamese startup called Beeketing. This investment will help Beeketing expand its operations and reach more consumers in Vietnam.
Swedish startup company Spotify made an office in Vietnam and invested about $100 million into the country by 2019. They want to capture a 50% market share within three years while providing jobs for up to 200 people locally. In addition, the music streaming service hopes its expansion plan will help expand its revenue sources outside of Europe, where its growth has plateaued in recent years.
Danish startup company Unity Technologies is also looking to invest heavily in Vietnam’s tech industry. The company, which makes the popular Unity game development engine, plans on investing $50 million over the next few years. They hope their investment will help them gain a foothold in Southeast Asia’s fast-growing gaming market.
The American company Airbnb, for example, is planning to invest $200 million in Vietnam over the next five years. This investment will help Airbnb expand its operations in Vietnam and further penetrate the Vietnamese market.
These are two examples of the many foreign startups interested in investing in Vietnam’s tech industry. The truth is that there is a lot of money to be made in Vietnam’s tech industry, and many foreign investors are taking notice. As a result, we expect to see even more foreign investment in Vietnam’s tech industry over the next few years.
What challenges do European startups encounter by turning to Vietnam’s tech industry?
When expanding into Vietnam’s tech industry, European startups may face one potential challenge: the language barrier. To succeed in Vietnam, it is crucial to communicate with local workers and business partners. Another challenge could be the lack of experienced talent in certain tech industry areas.
However, this is something that is quickly changing, as more and more Vietnamese workers are becoming skilled in areas such as software development and IT. So far, Vietnam has proven to be a very hospitable environment for foreign investors looking to expand into the tech industry. The country’s strong economic growth and talented workforce attract startups worldwide.
Overall, it is clear that Vietnam’s tech industry is booming and attracting a great deal of foreign investment. This is excellent news for the country, as it will help create jobs and spur economic growth. Moreover, we can expect even more development in the years ahead as Vietnam continues to become a leading player in the global tech industry.