Without question, COVID-19 is a black swan event that has shaken the business landscape across the globe. It has caused billions of dollars to leak away as startups desperately try to get through the day while maintaining their service and products for customers.

Thus, many startups have to make their own sacrifices by shutting down parts of operations and laying off staff members. These actions might sound logical at first, however, once they are executed, it will expose companies to high risks of losing existing customers for failing to deliver the promised results.

So the bottom line is finding the appropriate strategy to let tech startups save costs while still maintaining peak performance. In other words, cutting down on more expensive redundant headcounts and having a more economically viable offshore team to help support your operations.

According to a recent study, the average annual savings of offshore software project costs vs onshoring is about US$56,000 per project. This is a significant reduction, and very valuable for startups.

But why Vietnam? Does it have any cost advantages compared to other popular offshore destinations? And how will offshoring to Vietnam help you save more money than onshoring in Singapore?

The answer lies within the tech labour force that enables Vietnam to surpass others when it comes to saving costs.

Also Read: How Vietnam is accelerating fintech growth

Quick economy recovery with booming talent

Did you know that Vietnam is one of the 30 countries that have zero cases of COVID-19 death? They are also among the first nations in ASEAN to reopen, allowing businesses to resume. Simply put, Vietnam has done well to fight back the outbreak compared to its peers and other developed nations.

This means the country is already starting to recover ahead of others, especially for offshoring which already gets people back to work. In the landscape where everyone has to cut down their operation due to the distancing practices while still trying to meet the customer’s demand, having the capability to keep going without being disrupted is valuable.

Additionally, the country’s GDP growth record is brimming with an average six per cent rate, which is fastest compared to other famous offshoring destinations in ASEAN such as Indonesia, Thailand, Malaysia, and more. As a result, the Vietnamese market also holds much more potential in the near future.

On the other hand, Vietnam is also well known for its breeding ground of technical talent where young engineers, software developers, and entrepreneurs arise. Eddie Thai, general partner at 500 Startups Vietnam, expected Vietnam to be ranked in the top three countries with the highest number of engineers by 2024. As a result, Vietnam provides lots of leeway for offshore tech startups to find and hire the right talent.

From the standpoint of recruitment, having a wide talent pool will save time (and therefore costs) of scaling operations. Recruitment efforts allow businesses to access more candidates and have a higher chance of getting suitable talents for the roles they are hiring for, in a shorter period of time, hence, decreasing the overall time/cost significantly. With better recruitment efficiency, tech startups can better focus on other core business activities.

Affordable and reliable workforce

Shortage of skilled talent is one of the common reasons for sky-high onshore labour costs. In fact, firms often offshore to Southeast Asian countries to take advantage of their human resources.  Still, compared to other competing players, Vietnam is standing in the spotlight due to its lower salaries but a dependable workforce.

The Vietnamese government understands how important foreign investments are to its economic growth more than anyone. Thus, the country has put a lot of work into keeping its currency competitive to allow a fast-growing economy led by exchange rate-sensitive exports.

Also Read: Why 2020 is the year for tech startups in Vietnam

The “fortunate” side effect is that Vietnamese labour costs are approximately 10 per cent to 50 per cent lower than its neighbours such as Indonesia and Singapore, approximately five per cent cheaper than the Philippines when it comes to fresh developer:

Role	Labour Cost per Country (US$/Year)
	Vietnam	Indonesia	Philippines	Singapore
Developer	7,200 – 12,400	17,581 -24,658	8,300 – 12,426	38,000 – 84,500
Senior Developer	12,400 – 24,000	24,658 -30,970	12,426 – 14,620	50,500 – 84,500

Figure 2: Labour cost comparison chart (Sources 1, 2, 3, 4)

As shown in the table above, the low labour costs in Vietnam indicate that it is the better offshoring destination for tech companies and startups to save costs. Even when comparing with its neighbouring countries, Vietnam still presents a noticeable difference in the cost range. 

Moreover, Singapore has always been one of Vietnam’s largest foreign investors, with US$49 billion worth of projects in 2018. There has always been a positive relationship between the two countries, where investors are encouraged to venture into various sectors such as startups, software development, Industry 4.0, manufacturing, and offshoring.

Therefore, building an offshore IT team and accessing the labor market in Vietnam is much easier for Singapore companies and startups.

Also Read: As a startup investor, here is why we aim to focus more on Vietnam in 2021

By observing a 30 per cent yearly increase of IT growth in Vietnam at a relatively lower turnover rate and higher stability compared to Thailand or Malaysia, offshoring software development to Vietnam seems like a given.

Time is now

Now, rather than asking yourself, “Why do firms outsource or offshore?” try questioning this: “Why do firms outsource or offshore to Vietnam?”

While our list of reasons for offshoring software development to Vietnam will help businesses understand the opportunity present by the market, it is crucial for you to take action immediately before things get more chaotic from COVID-19. 

However, instead of venturing into it blindly, it is recommended to consult a trusted offshoring service provider for detailed legal information and market insight.

After all, modern problems require modern solutions! 
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The ongoing US-China trade war has been talked about for more than two years and the glooming uncertainty that it brings towards the world economy is worrying. The relationship between the two nations was getting better at the start of the year when they signed a Phase 1 Trade Deal.

However, with the recent Luckin Coffee accounting scandal followed by the US Senate passing a bill to delist Chinese companies from its exchange and the US blaming China for the coronavirus outbreak, this tension could possibly re-escalate and worsen the relationship again.

But because of the current pandemic crisis that is happening across the globe, both countries have put their ongoing tension aside to focus on saving their own respective countries from this unprecedented crisis.

Singapore is well known to be an open economy and highly dependent on international trade. In 2019, Total Merchandise Trade stood at S$1,022 billion (US$738 million), which is a 3.19 per cent decline from SG$1,055 billion (US$762 million) in the previous year. Geographically, Singapore is strategically located as it is at the crossroads of major air and sea routes within the Asia Pacific region and the Indian subcontinent.

Singapore also has the highest trade to GDP ratio in the world, averaging about 400 per cent from 2008 to 2011 and 326 per cent in 2018. Being at the centre of international trade, the US-China trade war will no doubt have a negative impact on Singapore.

Also Read: In brief: eBay launches e-commerce accelerator in Singapore; Circles.Life introduces eSIMs

Singapore is more exposed to the Chinese market with about 25 per cent of exports bound for mainland China (13 per cent) and Hong Kong (12 per cent), whereas the US only accounts for 7.64 per cent. Majority of the export items compromised of electronics and types of machinery.

As for Singapore’s re-exports, approximately 20 per cent of re-exports (which is SG$274 billion or 52 per cent of total exports) goes to China (13.6 per cent) and US (6.1 per cent). According to the Ministry of Trade and Industry, the US-China bilateral trade made up 1.1 per cent of Singapore’s GDP in 2018. Hence, if there was a fallout between the US and China, these are the numbers that would be heavily impacted.

US tariffs that are directly applicable to Singapore affect a relatively small set of products which include solar panels, modules, washing machines, steel, and aluminium. Singapore’s exports of these products to the US accounts for only about 0.1 per cent of total exports. While many of the tariffs do not directly affect Singapore, they would still have a spillover effect due to Singapore’s role in China’s supply chain.

With that being said, goods and merchandise trade will definitely be impacted by the trade war. However, a silver lining could result from the US-China trade war and that is from the ongoing Hong Kong-China nationalisation dispute. Should Beijing impose the new National Security Law on Hong Kong, the US may remove its special treatment towards Hong Kong.

The removal of this special treatment could lead to the US to treat Hong Kong the same way as it treats China, such as higher tariffs and export controls over sensitive technology. Apart from that, the Chinese government will also be able to track and seize rich Chinese money in Hong Kong as more than half of Hong Kong’s estimated private wealth of over US$1 trillion comes from the mainland.

Also Read: Singapore’s Insider raises US$32M Series C to scale up its multichannel growth management platform

Ultimately, this would impact Hong Kong’s status as one of Asia’s leading business and financial hub, therefore, forcing businesses, financial services and private wealth to relocate to Singapore, which is clearly the next best alternative in Asia.

Last year alone during the early phase of the protest in Hong Kong, Goldman Sachs reported US$4 billion outflows to Singapore because of concerns over the protest and while global FDI stagnated in 2019, Singapore’s inward FDI jumped 42 per cent to US$110 billion.

Singapore will emerge as a winner in Asia thanks to the US-China trade war but the question is: Will this gain on the financial service sector be able to offset the decline in merchandise trade in the long run?

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As a Star Wars fan, I had a great time watching The Mandalorian recently. It struck me that there are some lessons that we can pick from the series, especially for all of us in the startup ecosystem.

(Disclaimer: I consider myself a noob. I have just enjoyed the movies but have not read any books or comics from the canon. Please excuse any errors!)

These are my reflections on what it can teach us.

Overcome your prejudices

The  Din Djarin or The Mandalorian is deeply distrustful of droids. We see many references right from the first episode when the IG-11 droid encounters Din Djarin. In chapter seven, even the re-programmed IG 11 still evokes his prejudices. Din Djarin could only benefit when he is ready to let go and move ahead.

Startup learning: Are you distrustful of a partner due to some past experience? Can you give them the benefit of doubt and start afresh? Similarly, in dealing with customers and partners, have you ensured that there is no miscommunication? Do you have an NDA, terms of engagement, and deliverable well documented?

Importance of trust

As a bounty hunter, survival is key. They do whatever it takes to be alive and fight another day. Din Djarin always looks out for people he can trust. Kuiil, Cara, and Omera  are good examples of people he starts to trust (cautiously).

Also Read: What startup founders can learn from Netflix’s “The boy who harnessed the wind”

Startup learning: People that you can trust are your safety net. Having said that, have you yourself built trust in your dealings? Do you deliver as committed?

Build  Partnerships/ alliances!

Din Djarin develops a good partnership with Cara in chapter four. He shares the big vision and recruits Cara for his trip to Nevarro. We see Kuiil, Cara, IG 11, and Din Djarin build a good alliance in chapter seven.

Startup learning: You cannot win alone. Have you developed a good partnership with ecosystem players? Have you looked at how you can help other startups, i.e sharing leads via a referral programme?

You can pivot

IG 11 shows us that it is possible to transform –with thanks to Kuiil’s craftsmanship– from a bounty hunter to a nurse or protector.

Startup learning: Do you have the flexibility to pivot if the situation so demands? Or would you like to be rigid and crumble? We have seen many successful startup pivots, from Instagram to Twitter. The current COVID-19 situation is already showing some interesting startup pivots.

Also Read: Why moving fast and pivoting is necessary for startups

Think long term

The Armorer gives Dijn Djarin a long term perspective. Until The Child discovers its origin or is united with his own kind, Dijn should look after it as his own, as its Father. She even gives him his own signet for a clan of two.

Startup learnings: What is the higher calling as a startup? Are you committed to pursuing it? Do you have mentors or coaches who can give you perspectives such as the Armorer?

Give back to the community

Dijn is grateful to be a part of the Mandalorian tribe and gratefully remembers that he was a foundling who was rescued and taken in as a Mandalorian.  In chapter three, he requests the excess Beskar steel to be given to the foundlings. That is the way.

Startup learning: Are you giving back to the community, i.e mentoring foundling startups? Buying from fellow startups?

I have spoken.

These are my reflections. What do you think?  What more can you add? I look forward to your comments below. Do tag a Star Wars fan!

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With thoughts about a more sustainable future, businesses should prepare for all scenarios that may play out in the post-coronavirus world. Companies are capable of predicting the market conditions and overcoming a recession if they accept the real state of things.

“Now” requires us to transit most of the business operations in the online world, rethink customer experience, and invest in establishing trust-based relationships with customers.

From my experience, building customer loyalty is an essential part of digital marketing for new normal that can do wonders with your conversions.

Why invest in building customer loyalty?

Customer loyalty has become the most significant value for businesses in a crisis. Loyal customers are more likely to stay with your brand regardless of changing market rules and operational conditions during the lockdown.

The loyal audience is a self-fueling organism that generates increasingly more returning customers. They leave positive feedback on the web, share information about a favourite brand with their micro-circles of influence, or in other words, they share it by word-of-the-mouth. Don’t underestimate the power of this traditional method since most of our words are “digital” today and spread at the wind speed on the web.

Customers can expand the company’s impact in the digital world by sharing comments and reviews about a brand and its products on Twitter, Facebook, Instagram, and YourTube.

Also Read: What you need to know about digital marketing for the new normal

It helps increase brand awareness, acquire new customers, build trust with them, and grow conversions. Without further ado, let’s consider several practices that can help you increase customer loyalty during an economic downturn.

Let them know your brand cares

Let people know that your company co-experiences post-pandemic challenges together with customers. Sharing unobtrusive, un-salesy, cheerful, and useful content on social media and a corporate blog, your company can be helpful and build trust with customers. Empathise your messaging, remind customers to keep safe, update them about global news on how the world is adopting the post-COVID reality.

You can also share real-life stories on how your team and customers are adapting to the new normal collaboratively. Interviews with customers, social re-posts, and incorporating user-generated content may be helpful.

The content is a powerful medium for communicating and empathising with your audience. And yes, it brings long-term results in terms of conversions and brand popularity.

Emphasise the importance of social equality and integration

We all are small if taken separately. And we are big if gather all together. Don’t forget to remind your customers about it when nailing content for social networks, internal blogs, and online media. Inspire people to care about each other and stay “human” even during this period evoking slight associations with the pre-apocalyptic times in zombie movies.

Inside, we want to stay “human,” but often forget about it in the rush of everyday life. Show that your brand isn’t indifferent to what happens to everyone on a global scale and reflect it in your content.

Also Read: The art of customer loyalty

You would be surprised to see how many likes and shares a social media post with such messaging usually collects. That’s a great way to build trust and a positive brand reputation in online space.

Involve brand executives in building trust with an audience

Like the human body has the heart, every brand has its heart too. These are brand founders and CEOs. They dictate the rhythm of the whole brand and always evoke a huge audience’s resonance. Staying often in the shadow, they can step into light on social media and address customers personally today.

Today, many companies send exclusive newsletters and publish video-speeches of brand leaders expressing their opinions on the current situation and sharing about what measures are taken to keep customers safe and help them adapt to the new normal.

Make customer learning entertaining

You can increase custom loyalty and gain trust by offering helpful and entertaining video-content to your audience. Try to educate your customers on how to use your products and services in engaging explainer videos. Animated videos also work great for user onboarding on a website or mobile application.

Instead of writing long and boring tutorials, you can convert them in a creative and easy-to-understand format that allows people to learn and have fun at the same time.

Just imagine that your product is introduced by an animated mascot in a funny and exciting video-story that features your brand values and mission. You can also discover how illustrations can add value to your website and make educational content on your blog more “entertaining.”

Also Read: Customer is not always the king, says Tokopedia’s customer engagement expert

Address local communities

By addressing online marketing to local communities and adjusting messaging to their cultures, your brand demonstrates that it appreciates the uniqueness of every target group.

You can adjust your social media content and visuals to audiences of different demographics, religions, and nationalities. KFC Arabia’s recent tweet is a great instance of how a business can address a local culture.

Invest in a powerful customer support

It’s not surprising that brands can retain customers and grow their trust by providing outstanding customer support. Particularly now, when everything goes beyond its schedule, and there is a growing feeling of anxiety, customers need fast and round-the-clock customer care.

Give them confidence that a support team is easily accessible by incorporating AI-powered chatbots on a website, creating a separate business page for customer support queries on social media such as @Apple Support, and timely answering tickets via email.

While concerns toward the post-coronavirus future are now embracing the world, your brand and its culture may become the island of calmness and confidence for your customers. Let them feel you not only sells but also try to help and care about them.

In the current business landscape, marketing’s primary goal is simple — to establish a more personal connection with customers, cheer them up, and build trust with them in times of uncertainty.

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We’re taught right off the bat in business that cash is king. It’s all about profit, the bottom line, and expanding revenues. And while money is undeniably important in a business, I do believe our values in how we conduct business is a chief consideration.

Money should never come before ethics.

Of course, this can sound standard, like something everyone knows. But the truth is, there are many entrepreneurs who may be crossing the money and ethics line without really knowing it because we see it modelled so frequently.

I believe the only way to really know for sure is to have honest conversations about where we, as business owners, maybe valuing money over helping others.

The honest exchange of goods and services for money will always be inherently helpful. But, where does profit matter more than impact?

In thinking through examples I’ve seen in today’s “guru” oriented industry, I believe the following three scenarios demonstrate happenings that occur more frequently than many like to admit… especially in coaching.

But, assessing them is a good opportunity to determine whether you are living by an ethics-first value in your own life and business.

Also Read: Singapore’s Genesis Alternative Ventures secures investment from Capria Fund to back impact-focussed startups

Offering a service or coaching without plenty of experience

Unfortunately, there are many coaching programmes out there where ‘gurus’ teach students strategies and principles that they haven’t actually learned on their own. This happens in droves: coaches who have never actually built a business from the ground up to teach business boot camps, simply from what they have learned elsewhere (rather than from their own experience).

Even if an aspiring coach studies all the educational content in the world about how to start a business, inviting students or clients into the fold without the insights from real-world experience can be an example of valuing money over ethics. 

It comes down to this question: can you really and sincerely help the students that will trust you and buy from you? Or, do you just know that they will buy from you because of your airtight marketing strategy and PR efforts? If it’s the latter, you’re wasting peoples’ time and money for content that won’t actually help them.

This is harmful to you in the long run, too — you’ll receive less (if any) glowing testimonials, and students will be honest about how much you actually helped.

Copy-pasting someone else’s hard-earned business model or content

There’s also a tendency to completely model businesses or content after what someone else is doing since everything is so public nowadays. You can only know for sure if this is something you are doing if you are self-reflective of how you are creating, such as by getting a creative business idea only after you see someone else is launching something similar.

This isn’t fair to others in your industry. Think of it this way: what if you ideated an entirely new course module with a unique mastermind concept attached to it, and launched it only to see someone else shortly after launch something that mimicked the model?

Also Read: In Brief: Impact Partners supports US$1.1M funding round in solar energy marketplace SOLshare, CARRO opens used car automall

The truth is, people can sense the energy of authenticity. Even if you think someone’s model or content is incredible, that’s never a reason to copy it. Learn from how they think, but launch a product that’s all yours.

Only offering paid services and content with little free value

Finally, assess how often you give out value for free. I’m not at all advising you to leave your calendar open to help anyone who wants to book time with you. But, there needs to be a balance in which you are seeking to offer some type of value that doesn’t have a price tag. I firmly believe that the ethics of business is helping others, and this is where push comes to shove. Does it matter more to you to help, or to make a profit?

These can be uncomfortable questions, but the silver lining is that it’s the individuals and businesses that help others most that end up making the most profit.

You don’t have to choose ethics or money. Just put ethics first, hold your intention to help others as front and centre, and create products or services that people love.

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