A portion of Vietnam’s young people is being impacted by the nation’s burgeoning e-commerce industry in terms of lifestyle and purchasing patterns.

Social networking, quick videos, and live broadcasts are powerful influences on a large number of young people who shop online. They enjoy experimenting with new things, are happy to share goods with friends, and can save money by making joint purchases.

Vietnamese recent shopping habits showed prospects for e-commerce development

With a young population and a sizable Internet user base, Vietnam is growing to be the second-largest market in Southeast Asia. The regulatory bodies’ data indicates that by the end of 2022, the percentage of Vietnamese citizens accessing the internet is anticipated to reach 75 per cent due to the growing market size.

A maximum of 74.8 per cent of users are active at once. Internet users have done some buying online. As a result, it is predicted that 57 to 60 million people will purchase online, or around 58.5 to 61.6 per cent of Vietnam’s entire population.

Vietnamese consumers spend a total of US$12.42 billion on online purchases in 2022, an increase of 13.5 per cent over the previous year. There will be over 51 million Vietnamese consumers who shop online. Google and Bain & Company predict that by 2025, Vietnam’s digital economy will be worth more than US$52 billion and rank third in the ASEAN region.

Also Read: Una Brands rakes in US$30M to acquire e-commerce brands in home & living, mom & baby segments

Before 2025, Vietnam is expected to own Southeast Asia’s second-largest e-commerce market, right after Indonesia. Vietnam currently has a medium purchasing size of US$26, higher than the two most populous countries, Thailand (US$25) and Indonesia (US$18).

Vietnamese buying the whole world on e-commerce platforms

When it comes to today’s youth, also known as generation Y, Z, or millennials, e-commerce is such a common concept that questions such as “Do you deliver online?” have become commonplace or “I’m at home, school, or work; you may deliver it there” has become the normal conversation.

A group of young women at the office are grouped around a smartphone during lunchtime and are chatting about something; or, in the cosy setting of a coffee shop, a girl is paying close attention to the smartphone screen. Young people who know how to use technology to get ready for real life are the ones who are not completely involved in the virtual world.

Instead of going shopping together, groups of working women may prefer to purchase household goods at a discount online. Together, they shop online to not only save time and money on purchases and delivery charges but also to benefit from additional discounts and convenience. 

While waiting for her friend to arrive and sip coffee, the girl who was alone had time to order some school or cosmetic materials to be sent home. Instantaneously, it appears that daily tasks like leaving for work, school, or social engagements have never been disrupted by shopping. Since a time that we are unsure of, e-commerce has snuck into every nook and cranny of life.

Instead of wasting time on the streets, many people now prefer to shop at online marketplaces like Tiki, Lazada, Adayroi, and Shopee. Significant benefits of e-commerce include the variety of product categories, ease, and cost-effectiveness. Fast delivery services with a variety of options also dramatically alter customer habits.

Untold online shopping stories – Vietnamese real experiences

N.M. is a mother of a two-year-old son. She discovered that a lot of her coworkers aggressively sent the group join link when they went shopping. N.M. described her purchasing experience by saying, “E-commerce brings the whole world to me through some clicks.” She began to “shop online” over time, discovered affordable things and developed the habit of placing orders with pals.

This is taken to mean that promoting things to others, doing business with them, and exchanging experiences have all turned into hobbies for many people. Consumption of goods and services online has gradually changed from “buying shopping” to “shopping while playing.”

Shopping development and “like-minded friends” in consuming habits have become a required course for many young people in the field of internet buying.

Hung, a 23-year-old freelance businessman in Hanoi, admits that Covid-19 has only slightly altered his purchasing patterns. “Because I was unable to leave the house, I soon became accustomed to shopping online. Maybe I’ll keep doing this behaviour when the translation is finished. E-commerce is quite practical and helps my family and me keep in touch with fewer individuals. Lazada is one of the online stores I use frequently since they ship quickly, offer lots of coupons, and make payments simple”.

Also Read: How ShopUp helps Bangladesh SMEs to take on big players with its B2B e-commerce platform

Khanh Linh, a 26-year-old bank employee, was recently “lost” on the e-commerce platform but has since developed into a “loyal consumer” at these exchanges. The young girl bought everything, including tiny items like hair ties and jewellery boxes, as well as spices, kitchenware, snacks, toothpicks, lipsticks, and home decor. Khanh Linh’s account on an e-commerce site reached diamond status after being active for about three months.

Unstoppable online shopping means wider opportunities

There is no denying the promise of e-commerce, particularly in Vietnam, where young customers dominate the industry and are expected to grow. The e-commerce movement is altering customers’ shopping behaviours across a wide range of categories in both rural and urban settings.

Although Vietnamese consumers like online shopping, it should be highlighted that the majority of the things they buy are inexpensive due to their continued concern about product quality issues and secure payment methods.

The aforementioned benefits, together with the increasing consumer trend toward e-commerce, provide a stepping stone for companies to grow in this industry. Startups with interest in the industry perceive significant development potential. To compete with popular e-commerce platforms in the Vietnamese market, you must, however, offer consumers amazing innovations.

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The International Monetary Fund (IMF) recently called for more regulation of cryptocurrencies, arguing that their rapid growth and potential impact on the global financial system make it imperative for governments to take action. While some may view this as an overreach of government authority, I believe that increased regulation is necessary to ensure the financial system’s stability and protect consumers.

The IMF’s concerns are not unfounded. Cryptocurrencies have grown tremendously in popularity over the past decade, with Bitcoin alone reaching a market capitalisation of over US$1 trillion at its peak. While some view cryptocurrencies as a way to decentralise financial systems and provide greater privacy, others have raised concerns about their potential for facilitating money laundering, terrorism financing, and other illicit activities.

Furthermore, the lack of regulation has contributed to the high volatility of cryptocurrencies, which can pose risks for both investors and the broader financial system. Cryptocurrencies are not backed by any government or financial institution, which means their value can fluctuate wildly based on market demand alone.

This volatility makes cryptocurrencies a risky investment and can contribute to financial instability if large numbers of investors suddenly sell their holdings.

In addition to these risks, there are concerns about cryptocurrencies’ environmental impact. The energy consumption required for mining cryptocurrencies is significant, and the carbon footprint of the industry is estimated to be comparable to that of a small country. As the world increasingly grapples with the urgent need to address climate change, the environmental impact of cryptocurrencies is becoming harder to ignore.

The need for cryptocurrency regulations

Given these concerns, it is clear that some level of regulation is necessary to address the risks associated with cryptocurrencies. However, it is important to note that not all regulation is created equal. Heavy-handed regulation that stifles innovation and drives the industry underground is not the answer. Instead, we need smart, targeted regulation that addresses the specific risks associated with cryptocurrencies while allowing for industry innovation and growth.

Also Read: Cryptocurrency regulations should evolve: Mistletoe Singapore MD Atsushi Taira

One potential area for regulation is anti-money laundering (AML) and counter-terrorism financing (CTF) laws. Currently, these laws are often not well-suited to the unique characteristics of cryptocurrencies, which can make it difficult to track and prevent illicit activities. By updating AML and CTF laws to better address the risks posed by cryptocurrencies, governments can help ensure that the industry is not used as a tool for illicit activities.

Another area for regulation is investor protection. Cryptocurrencies are a new and complex asset class, and many investors may not fully understand the risks involved. By requiring greater disclosure and transparency from cryptocurrency exchanges and other market participants, governments can help ensure that investors have the information they need to make informed decisions.

Lastly, there is the issue of environmental impact. While regulating the energy consumption of the entire cryptocurrency industry may be challenging, governments could require greater transparency from cryptocurrency miners and exchanges about their energy usage and carbon footprint. This could help incentivize the industry to move towards more sustainable practices.

Of course, there are also risks associated with increased regulation. One concern is that heavy-handed regulation could stifle innovation and drive the industry underground, making it even harder to regulate and control. Additionally, there is a risk that poorly designed regulations could increase the risks associated with cryptocurrencies by driving them into unregulated or offshore markets.

However, these risks can be mitigated through smart, targeted regulation that takes into account the unique characteristics of cryptocurrencies. By working closely with industry participants and other stakeholders, governments can develop regulations addressing the risks associated with cryptocurrencies while allowing for innovation and growth.

Final thoughts

In conclusion, the IMF’s call for more regulation of cryptocurrencies is not an overreach of government authority but rather a necessary step to ensure the stability of the financial system and protect consumers. While there are certain risks associated with increased regulation, these can be mitigated through smart, targeted regulation that addresses the specific risks posed by cryptocurrencies.

I believe that the increased regulation of cryptocurrencies is necessary to ensure the financial system’s stability and protect consumers, and can be achieved through collaboration between governments and industry participants.

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Mapxus, a Hong Koing-based startup providing global indoor mapping and navigation services, has completed its Series B funding round, raising over US$5 million.

Japan’s Kawasaki Heavy Industries led the round.

With the new investment, the company will continue to innovate and develop technology solutions for the future of indoor mapping and location-based services. Mapxus sees opportunities both in the government and factory sectors.

Launched in August 2021, Mapxus collaborated with Kawasaki Heavy Industries to provide indoor technology such as digital maps, Wi-Fi fingerprint positioning and SDK for indoor map data infrastructure service in Japan, which is named iPNT-K.

Also Read: This year, International Women’s Day calls for the tech startup ecosystem to look within

With the iPNT-K solution, businesses can apply indoor navigation in commercial facilities such as shopping centres, train stations, and airports to perform location-based marketing, traffic analysis, barrier-free navigation, manage and track operations, facilitate the management, and improve the work efficiency of employees in offices and warehouses.

“With this new funding, we will accelerate our indoor map data infrastructure development in Japan (iPNT-K) with Kawasaki and expand our service coverage in Southeast Asia. We aim to enable businesses to revolutionise their interactions with physical spaces and deliver a comfortable, intuitive, and seamless indoor-outdoor experience for everyone,” added Dr John Chan, Founder and CEO of Mapxus.

The startup recently joined hands with NOIZChain to co-create Honio, an indoor location-based Game-Fi metaverse. Honio aims to connect the virtual and physical worlds through a mobile app that rewards users for spending time in physical stores.

It is expected to launch in Japan by 2023 and other Southeast Asian markets by 2024.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

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As the market becomes more open towards alternative protein, we begin to see a wider variety of products offered by foodtech startups in Southeast Asia. Made from everything from protein whey to even insects, these products offer a healthier and more environmentally friendly alternative to existing solutions.

SoiLabs is one of the latest companies to come up with unique solutions.

The Singapore-based company offers a unique and integrated solution to the issue of okara disposal.

Okara is soy processing waste produced by soy processors or tofu manufacturers. To give a perspective, the tofu industry produces around 800,000 tons of okara in Japan; about 310,000 tons in Korea; and around 2.8 million tons in China annually. Despite its environmental threat, okara is known to be highly nutritious: It has a high content of proteins, fibres, vitamins, phytonutrients and minerals.

To make it consumable, the company transforms okara into Soi-X, a proprietary intermediate that can be used for multiple final products.

According to SoiLabs CEO Mauro Catellani in an email interview with e27, it is a similar concept to converting wheat into flour.

“We could then see that, through the development of the Soi-X intermediate, we had the ability to industrialise the conversion of okara into value-added nutrition products, starting with the cheese and soup,” he explains.

Also Read: Why Buhler believes that collaboration is key to support the alternative protein industry

“This allows us to solve the waste disposal problem for soy processors by converting it into an intermediate product that can be transformed initially into a food product, but also into multiple high-value-added products, addressing other application segments such as animal nutrition, food supplements, cosmetics, biostimulants, and probiotic drinks.”

SoiLabs was founded by Hafnium Ventures, a Singapore-based investment and advisory firm that is focused on speciality chemicals, sustainable materials and agri-food tech as well as in the identification and commercialisation of early-stage innovative technologies and products, bringing hands-on support to their development.

Hafnium cooperates with many institutions and universities in Singapore and abroad, including Republic Polytechnic. It first identifies the technology for producing soy cheese slices, cream cheese and soup from okara during its discussions with the institution.

Nutrition for the nation

According to Catellani, SoiLabs differentiate itself by industrialising the transformation process of okara at scale, and by preventing a valuable, nutrition-rich material from going to waste. By doing this, the company aims to add to the global food supply.

This goal is aligned with Singapore’s 30 by 30 Initiative, a movement to build up the country’s agri-food industry’s capability and capacity to sustainably produce 30 per cent of local nutritional needs by 2030. It is also in line with the Sustainability Development Goals.

“We focus on the vegetarian and vegan market and expanding our product line in these sectors. Okara is a good raw material and a rich source of good fibres; it can also be used as a dietary supplement to prevent diabetes, obesity, and hyperlipidemia,” Catellani says.

Also Read: ‘Meat’ing the needs of the alternative protein space in Singapore

In February, SoiLabs announced that it has raised S$500,000 (US$370,000) in a seed funding round from Sanyo Chemical and Hafnium Ventures. In addition to the investment in SoiLabs, Sanyo Chemical has also entered into a MoU with SoiLabs to grow its business in Japan and expand additional end-product applications.

The funding will allow the company to accelerate the commercialisation of Soi-X and further develop its existing and upcoming end products for both local and international markets.

“The funding gives us a strong platform for both the commercialisation of our current technologies and building a strong pipeline of complementary technologies and end product applications. With Sanyo’s investment, it also brings with it a close collaboration with a strong industrial player and we look forward to working in partnership with them as we develop the Japanese market,” Catellani comments on the funding.

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Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: SoiLabs

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“The military is in power, and it couldn’t care less about startups,” a founder from Myanmar told e27. “The military has much bigger things to worry about.”

The startup industry of Myanmar, a nation of 54 million currently under military rule, is in dire straits. The COVID-19 pandemic, followed by the coup d’état in February 2021 and the ongoing financial slowdown, has led to umpteen problems. Imports are strictly limited, bank withdrawals are restricted, and gasoline prices have risen over 250 per cent. Electricity is routinely cut off even in Yangon, the largest city.

As a result, over 70-80 per cent of startups shut down (as per Tracxn, there are currently 345 startups in Myanmar), the person shared on the condition of anonymity. The most notable is One Kyat, a general classifieds app owned by Singapore’s Carousell.

Some, like Ringier, exited Myanmar (JobNet.com.mm has now taken most of its market share in Myanmar). Even big businesses, such as Telenor and Ooredoo, either shuttered or sold.

“Some companies shut down because they ran out of funding while others simply because they couldn’t operate under economic uncertainties,” the person revealed.

As the military junta tightened its grip on the government, pro-democratic people, including founders and techies, took to the streets. 

However, these movements were crushed. Several prominent founders were framed and arrested, many fled the country for safety after imprisonment for six to 12 months, and some got killed in interrogation camps. 

Scores of IT industry employees (highly skilled and English-speaking) fled to foreign countries through legal or illegal immigration means in search of livelihood. Some joined the People’s Defense Force (PDF) as soldiers. The PDF is the armed wing of the National Unity Government formed by the youths and pro-democracy activists on 5 May 2021 in response to the coup. A few stayed in the country because of family attachments; some are still underground, fearing arbitrary arrests.

What triggered the migration?

The migration — mostly to neighbouring Southeast Asian countries such as Thailand, Vietnam, Singapore, and Cambodia — was primarily triggered by the coup. Early-stage founders began the migration first. Late-stage firms and well-established IT companies with over 20 years of existence later followed suit.  

“Our economy was stable even during the first year of the COVID-19 outbreak. Barring the brick-and-mortar startups, many digital and tech startups in Vietnam saw good business. There were no workforce reductions or resignations, while there was great distress in many parts of the developed world,” said another person who wished not to be identified.

Also Read: Myanmar startup Better HR secures 6-digit bridge funding for Asia expansion

“However, the coup turned things around for the worst. The digital ads vertical was the first to be impacted, and then tech startups. The first few weeks of the coup were hard because of the blocking of the internet and social media [by the military junta]. Everyone had to use VPN to access social media. Hence, all the geolocation-targeted ads became useless,” added the person, who has held a management-level role in a startup.

In the early months of public protests, all those young workforces in digital businesses were either on the streets or becoming keyboard warriors, creating digital content on social media and motivating the general public. Everyone expressed the desire to join the democratic protest and opposed the coup. 

“With the failing infrastructure, restrictive internet, citizens being watched, shocks to the banking industry, and frequent blackouts in the past two years put all thriving startup and tech industries to their final halt,” shared the second person. “Our startup industry is toppled, if not crashed. No typical angel or VC investor will invest in startups in the country unless they are passionate about something.”

Myanmar vs Thailand

Thailand has been the main destination for the fleeing founders and the IT workforce. While some moved their companies to this Kingdom, some joined the corporate life.

Thailand is a developed economy with good infrastructure and offers a variety of visa options. The Thai economy is enormous, and its digital ecosystem is advanced with e-commerce and consumerism. The living costs are lower compared to Singapore or even Myanmar. Moreover, Thailand and Myanmar share many similarities, including culture, food, and festivals. 

However, regulations in Thailand, such as 51 per cent citizen ownership, are not startup-friendly.

Other countries, such as Singapore and Vietnam, are also good options. “Thailand is one of many options. Almost every possible tech startup is diversified and re-registered in Singapore, the US or Thailand. Only a few remain in Myanmar,” said the second person. “It will take another five to ten years to rebuild the startup ecosystem in Myanmar, starting when the revolution won.”

Despite all the problems, some are still confident and expect Myanmar’s economy to revive soon. They see some positive signals. “While some big businesses shut down or sold, we know many companies that have stayed in Myanmar (especially the Southeast Asian companies or investors),” said another Myanmar-born entrepreneur. “I know of some founders who left for other Southeast Asian countries for other opportunities. I also know others who returned to continue to operate their businesses in Myanmar and take more market share, supporting the rest of the economy and customer base with less competition in the market.”

According to this person, even in these difficult times, the economy and safety in major cities seem more stable for the time being. “We hope it will continue to bring peace, prosperity and opportunity again to the wonderful people of Myanmar in the future.”

However, things don’t look good for now. The military junta so far seem to initiate any action to bring back the tech talents and startups from other countries and offer them a conducive atmosphere to operate. They have bigger things to worry about.

“There are many software engineers, copywriters and social media specialists whom I personally know are in the PDF investing their lives in strong commitment. I am looking forward to the days to create jobs and sustainable businesses for them to get back into the lives they deserve,” noted one of the people mentioned above.

Does the junta care?

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Copyright: adirach

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