Vietnam currently ranks first in the world by the ‘Entrepreneurship Index’ (AESI) and second in ‘Positive attitude towards startups’. Millennials (born from 1980 to 1995) have the highest entrepreneurial spirit. The number of startup companies is currently 3,000, nearly double that from 2015.
Why is this index so high? Join Vietcetera to find out why more and more students are choosing to enter startups upon graduation.
1. More time and opportunities
Unlike the old generation, a lot of the younger generation now live in more developed societies. Life no longer just revolves around making enough money to afford basic necessities such as rice or clothes. Nowadays, the younger generation has time and opportunity to explore and access new innovative models from different countries and cultures. As a result, startup ideas are developed from learned models that have been successful abroad. For example, Luxstay is a sharing economy model in Vietnam, similar to global brand name Airbnb.
Startup motivation can also be derived from family members or family economic conditions. CEO of Sunhouse Group, Nguyen Xuan Phu, specializes in the kitchenware business. He had spent his childhood years helping his mother cook in the kitchen while she was away working. Through this childhood experience, he invented kitchen utensils to make cooking easier.
2. Thriving social platforms
Besides information sharing, social networks are important platforms for modern startup ideas due to its large number of users. In Vietnam, 55 million people are common users of Facebook, YouTube, Zalo, and Instagram. Moreover, Vietnam has become one in ten countries with the highest number of YouTube users in the world.
Becoming a YouTuber or Instagram reviewer is increasingly popular. YouTubers and Instagrammers build their own personal brandings, then attract product brands to sponsor them for “selling their influence” to product buyers on social media.
Food blogger Mai Khanh, for example, runs Instagram review page @tebefood. By ultilizing the user connectivity and image sharing function on Instagram, Mai Khanh has turned her Instagram page into a “food-book,” sharing her food preferences and recommending delicacies throughout Vietnam. “Thanks to this job, I can earn a decent amount in my life without worrying about working in the company to make money,” Mai Khanh revealed.
Creating a successful, curated personal image with high influence might attract brand partnerships. For example, the success of beauty bloggers Viet Changmakeup, Quach Anh, and Chau Bui create not only revenue but also the rise of new brands.
3. Wider range and access to information
Many series of successful startup stories have inspired others and heightened their entrepreneurial spirit. Dreaming about the successful, wealthy future gives new graduates drive. However, does this spirit continue if a startup goes bankrupt, or will it just disappear following the failure?
Starting a business is a long-term battle. Beside having a potential idea to start with, attaining the right knowledge, experience, and enough capital are also important. Fortunately, the upcoming generation has access to more information and valuable experiences from senior professionals. Not limited by just radios and books, the younger generation has opportunities to meet with mentors and founders at training sessions, skill-training workshops, forums, and start-up competitions.
At the same time, capital raising programs such as Shark Tank, Vietnam 500 Startups investment funds, SVF or start-up support units, such as BSSC, have partly resolved some concerns about capital and investor-networking. It is up to new startups to utilize the data, analyze the market, actively explore themselves, and engage more.
Not all startup stories are successful. However, more Vietnamese college students are creating business following graduation because they have so many more resources at their fingertips. Millennials and Gen Z Vietnamese have a network that encourages support and growth. For those interested in launching a startup, always stay strong, be self-reliant, and be ready to step out of your comfort zone to learn about the area you pursue.