Vietnam is one of Southeast Asia’s most exciting and dynamic markets.
With its fast-growing economy, youthful population, and rapid digital adoption, Vietnam offers fertile ground for innovation. The country’s tech-savvy workforce and thriving entrepreneurial ecosystem make it an attractive destination for startups to explore new markets and forge strategic partnerships.
Why Vietnam?
Vietnam’s startup ecosystem has been gaining significant traction in recent years. The country has climbed the global startup rankings from 58th to 56th in 2024 (Hoa, 2024), and its economy continues to grow at an impressive rate. In 2022, Vietnam experienced the highest growth in Southeast Asia’s digital economy, with a remarkable 28 per cent increase in the Gross Merchandise Value from US$18 billion in 2021 to US$23 billion in 2022 (Dharmaraj, 2022).
Corporate innovation in Vietnam
One of the key challenges facing Vietnam’s innovation ecosystem is the limited funding from large corporations, which hinders the growth of startups and the overall development of the ecosystem.
Startups often begin by addressing niche markets or innovating in areas that larger players overlook. However, as they grow, they inevitably find themselves up against established, well-resourced corporations.
Rather than viewing these corporations solely as competitors, startups can adopt a collaborative approach to accelerate growth. Partnering with corporations provides access to broader networks, distribution channels, and resources. These collaborations allow startups to tap into corporations’ extensive resources, including their established customer base, distribution networks, and operational expertise, which can significantly reduce the time and effort required to scale.
For corporations, the benefits of such alliances extend beyond access to innovation; they gain fresh perspectives that can help challenge the status quo and encourage out-of-the-box thinking, which is often difficult to foster internally. Startups, being agile and resourceful, bring cutting-edge solutions to traditional industries, enabling corporations to stay competitive in an ever-evolving market. In turn, startups can leverage a corporation’s credibility and market influence to increase their visibility, acquire larger contracts, and attract more investments.
Furthermore, these partnerships can create synergies where corporations provide capital and operational infrastructure, while startups contribute innovation and flexibility. This co-creation model can lead to the development of new products, services, and business models that neither party could have achieved independently. By focusing on collaborative growth, rather than competition, startups can enhance their chances of long-term success, with corporations playing a pivotal role in their accelerated trajectory toward profitability and market leadership.
Also Read: All you need to know about the fintech boom in Vietnam
The Open Innovation & Technopreneur Institute (OITI) promotes technological entrepreneurship by encouraging collaboration between startups, industries, and research institutions through open innovation. It offers educational programs, mentorship, and incubation to help entrepreneurs scale tech-driven businesses across sectors such as fintech, healthtech, and greentech. Ultimately, strategic partnerships create a win-win scenario: startups gain the scale and market access they need to grow, while corporations stay relevant and innovative in an increasingly disruptive landscape.
Case study
An example is Society Pass’ acquisition of Gorilla Networks marks a strategic move that benefited both companies by combining their strengths and resources to thrive in the rapidly evolving tech ecosystem. Society Pass, a Vietnamese tech company, has established itself as a key player in the Southeast Asian market by focusing on building a strong network of technology-driven businesses.
By acquiring Gorilla Networks, a Web3 Mobile Virtual Network Operator (MVNO), it not only diversified its portfolio but also gained access to the disruptive innovations and technologies that Gorilla Networks brought to the table.
For Society Pass, the acquisition allowed them to break into the Web3 and blockchain-enabled telecom space, which is a growing area of interest for tech-forward companies. The Web3 component of Gorilla Networks’ offerings introduced decentralised and user-centric telecom services, creating new revenue streams for Society Pass and enabling them to capture a niche market segment. This move also expanded Society Pass’ technological capabilities, providing them with a unique edge over competitors and positioning them as a leader in integrating next-gen technologies with traditional services.
On the other hand, Gorilla Networks greatly benefited from the acquisition as it gained access to the broader resources, operational infrastructure, and market reach of Society Pass. With a larger company backing its operations, Gorilla Networks could scale its innovative offerings—such as token-based mobile services—much faster than it could independently.
The infusion of capital, human resources, and strategic guidance from Society Pass enabled Gorilla Networks to accelerate product development, enhance customer acquisition efforts, and expand its market footprint beyond Singapore into the larger Southeast Asian region. In fact, Gorilla Networks initiated their Vietnam entry through the Global Innovation Alliance (GIA) Ho Chi Minh City Acceleration Programme supported by EnterpriseSG and Singapore Economic Development Board. The GIA is one of the many types of support that Singapore-based startups can tap into.
Also Read: How early-stage deep-tech startups can attract and retain the right talent
The acquisition of Gorilla Networks by Society Pass created a more robust and diversified entity that could better withstand market fluctuations, embrace technological disruptions, and capture emerging opportunities in the region’s fast-growing digital economy. It served as a growth catalyst for both Society Pass and Gorilla Networks, allowing each to leverage the other’s strengths to achieve long-term success and cement their positions within the competitive tech ecosystem.
What’s next?
OITI will be organising Open Innovation Day on 25-26 October, 2024, in Ho Chi Minh City, where Quest Ventures is a co-organiser among others. Startups that are interested in working in corporations in Green Agriculture, Smart Industry, and Green Urban Living sectors are highly encouraged to attend. Who knows? This could be the seed of the next success story after Gorilla Networks.
This article is co-authored by Avryl Tan,Venture Capital Analyst at Quest Ventures
—
Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.
Join our e27 Telegram group, FB community, or like the e27 Facebook page.
Image credit: Canva Pro
The post Why Vietnam is the next big thing for startups and corporate partnerships appeared first on e27.