JUST months after Vietnam reopened to international visitors, some Singapore companies are wasting no time heading to the South-east Asian country in search of opportunities, in areas from tech to lifestyle.

Emile Dumont, founder and chief executive of sports massage studio The Posture Lab, said that Vietnam has a growing fitness and wellness trend, but a lack of proper accreditation for trainers. This gap is what The Posture Lab, which also runs an academy, hopes to fill.

"That's why we actually want to come in with that first-mover advantage to build up that whole ecosystem aspect, before we actually build or develop even just gym management or setting up gyms," he explained.

The plan is to work with universities to offer internationally-accredited fitness and wellness courses. This also creates a pipeline of manpower for when the business is ready to scale, Dumont told The Business Times (BT).

To get a head start on these plans, the company participated in the Global Innovation Alliance (GIA) accelerator programme in Vietnam in August.

Formed by a partnership between Enterprise Singapore (EnterpriseSG) and venture capital firm Quest Ventures, the programme is curated for "high-potential" startups and companies, with masterclasses, market immersion programmes and ongoing mentorship.

Earlier batches did not get to visit Vietnam as borders were closed due to the Covid-19 pandemic. But now that borders have reopened, Quest Ventures said that new applications for this fifth edition were up 14 per cent compared to the previous run, despite a shorter application window.

Only 5 companies were ultimately chosen for the programme, which took them to Hanoi and Ho Chi Minh City over 5 days jam-packed with networking events and meals with potential partners and investors, as well as meetings with mentors.

Describing the experience as "amazing", Dr Tan Yeow Kee, founder and CEO of fall detection startup SoundEye, said he found 2 partners during the trip. One of them is Canon Vietnam, with which Dr Tan had already been in contact prior to the trip.

"Before I came, I already started to look for partners, otherwise it's going to be a bit tough. So I think a few steps ahead," he said. He plans to return to Hanoi this month to meet a customer.

Since 2020, 45 Singapore-based startups, including the latest cohort, have participated in the Vietnam GIA programme.

Kow Juan Tiang, executive director for South-east Asia at EnterpriseSG, said 3 startups have since set up a presence in Vietnam, while more than 10 are in discussions with potential partners on possible project collaborations.

Beyond the GIA, companies can tap schemes such as the Market Readiness Assistance grant, which provides support for overseas set-up, business matching and market promotion. Businesses can also apply for the Enterprise Development Grant to increase their in-market competitiveness.

EnterpriseSG also has 36 global overseas centres to help companies navigate foreign markets. In Vietnam, these are in Hanoi and Ho Chi Minh City.

Nguyen Phi Van, chair of Vietnamese government-backed Saigon Innovation Hub, credits the good inter-government partnership for many Singapore companies' interest in Vietnam.

"Singapore has always been one of the strongest partners of Vietnam pre- and post-pandemic. After the pandemic, the first 10 delegations I receive in Vietnam are all Singaporeans," she said with amusement.

Singapore companies' appetite for the Vietnam market can also be seen in the flows of capital into the country.

Singapore was Vietnam's top foreign investor for the second straight year in 2021, and still holds the pole position for the first half of 2022 with direct investment contributions totalling S$4.1 billion, according to Vietnam's Ministry of Planning and Investment.

The Singapore Business Federation (SBF), which set up a Singapore Enterprise Centre (SEC) in Ho Chi Minh City in January last year, said companies are ready to head here now that the pandemic is fading away.

For the past 2 years, the SBF could only hear companies expressing interest; now, with more information and greater confidence, it can "see a lot of companies flying in", said Amy Wee, country head at the SEC@Ho Chi Minh City.

Wee, who shuttles between Ho Chi Minh City and Singapore every few weeks, manages the GlobalConnect@SBF in the southern Vietnamese city. From Aug 22 to 26, an overseas market workshop was held there for 16 companies which are new to the market and would like to meet potential customers and vendors.

One of the companies is Singapore fashion store iORA, which hopes to make Vietnam its second overseas market after having expanded into Malaysia in 2007.

Speaking to Singapore reporters on the sidelines of the workshop, iORA's marketing director Teo Toon Lin said it was very important to do sufficient groundwork before deciding to expand overseas.

"We want to really have an opportunity just to check things out a bit and get ourselves familiar. Looking for suitable partners might take some time too, because you want to work with people who share the same ideas," she noted. "And you want to make sure that you trust your partner to do certain things here correctly when you're not around."

Ripe economic conditions
Following sluggish growth last year, Vietnam has made a swift recovery from the pandemic, with gross domestic product (GDP) expected to grow 7.5 per cent year on year in 2022, according to estimates by the World Bank. With a population of close to 100 million, Vietnam's middle class is also believed to be among the fastest growing in Asia.

While these alone are attractive factors for potential investors, market watchers note several other enablers that make Vietnam stand out: social and political stability, relatively low operating costs, easy access to labour, as well as a bevy of business and investment incentives offered by the pro-business government.

The government has been "very welcoming to invite foreign businesses to actually develop themselves in Vietnam" and has encouraged young Vietnamese to upskill, SBF's Wee added.

EnterpriseSG's Kow has observed that many Singapore companies, particularly in tech, choose to set up in Vietnam as it has a ready pool of tech talent, reducing the time needed to set up shop. "These talents can also help Singapore companies gain market insights and navigate local business practices, as well as bridge language barriers as they look to collaborate with in-market players," he said.

The country's strategic location -- bordering China, Cambodia, Laos and Thailand -- and long coastline make exports easy, SBF's Wee pointed out.

Vietnam's recent history also presents certain unique conditions, said Taku Tanaka, co-founder and CEO of Ho Chi Minh City-based food-sourcing startup Kamereo that last year raised US$4.6 million in a Series A funding round.

"Compared to other countries, Vietnam doesn't have very big conglomerates yet. Because of the Vietnam War, most of the big corporates started from the 1970s or 80s," pointed out Tanaka, adding that most conglomerates are still managed by their first-generation founders and chief executives.

Noting that 98 per cent of businesses in the country are small and medium enterprises, he said: "So the conglomerates are not really strong enough, and I think there's still a little room for even foreigners to come in to do something better than what there is right now."

Source: The Business Times

Link: Here

Laos reported a trade deficit of USD 166 million in August as it imported substantially more goods than it exported from the country. There has been an increase in the trade deficit by USD 52 since July.

According to the latest information from the Lao Trade Portal website, the overall value of Laos trade was USD 1.02 billion in August this year, with USD 427 million in exports and 593 million dollars in imports.

The major export sources included iron ore, copper ore, paper, paper-made products, gold ore, wood pulp, and waste, asphalt, fertilizer, paper, sugar, beverages, clothing, and shoes.

Meanwhile, major imports comprised Diesel and mechanical equipment, land vehicles, wood pulp, and waste paper, beverages, plastic products, living animals, minerals, steel and steel products, and magnetic steel.

Laos’ biggest export destinations were China, Vietnam, Thailand, Australia, and Hong Kong while the top nations it imported from were Thailand, China, Vietnam, The United States, and Switzerland.

Soruce: LaoTainTime

Government-owned Ghanim International Corporation is set to begin operating Brunei’s biggest integrated food and beverage (F&B) manufacturing facility by the year’s end, which is expected to significantly bolster local production for domestic and international demand.

Located at the Salambigar Industrial Park, the multi-million dollar Brunei Food Industry Development Multipurpose Manufacturing and Processing Facility (BFID) is a joint project between Ghanim and Darussalam Enterprise (DARe).

In addition to serving as Ghanim’s manufacturing base for their bruneihalalfoods product range, BFID will also be open to local businesses to develop and manufacture their own products.

With substantial production capability, BFID is expected to lower manufacturing costs, while also increasing product marketability by acquiring international standard certifications for its facilities.

Source: Biz Brunei
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International Monetary Fund (IMF) Executive Directors commended the Sultanate’s authorities for adopting policies to cushion the impact of the COVID-19 pandemic as well as for the impressive vaccination rollout.

The directors observed that a strong economic recovery is underway, with further lifting of COVID-19 restrictions, investments in large petrochemicals projects, and higher oil and gas prices.

Noting the downside risks to the outlook, the directors stressed the need to maintain supportive policies until a private-sector-led recovery is on a firm path.

This was highlighted when the IMF’s Executive Board concluded the 2022 Article IV consultation with Brunei Darussalam this week.

The directors stressed the need for continuous reform efforts to promote economic transformation, foster resilience, and accelerate green, digital, and inclusive growth.

The directors underscored the need to maintain targetted fiscal support for vulnerable businesses and households in the near term, while stepping up reforms to improve fiscal sustainability and intergenerational equity in the longer term.

Source: Borneo Bulletin

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BANDAR SERI BEGAWAN – Brunei’s trade volume with Malaysia reached RM$5 billion ($1.56 billion) in the first half of 2022, the Malaysian High Commissioner to Brunei said on Wednesday.

Speaking at a reception to celebrate Malaysia’s 65th Independence Day, Dato’ Raja Reza Raja Zaib Shah said, “Looking at this positive momentum, it is not impossible that the trade value of the two countries would reach RM10 billion ($3.1 billion) by the end of this year”.

“If this is the case, we will witness for the first time in history a double-digit record of bilateral trade between Malaysia and Brunei,” he said.

In 2021, Malaysia and Brunei recorded a trade volume of RM8.03 billion ($2.49 billion), an increase of 70% compared to 2020.

Malaysia was also one of the top travel destinations for Bruneians before the pandemic, with Bruneians contributing $1.16 billion in tourism receipts in 2019.

Source: The Scoop

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There is no doubt long lockdowns have had a significant impact on people's daily lives as the world continues its transition from managing the Covid - 19 crisis to recovery and the reopening of economies . Consumer behaviours have shifted as a result of lengthy periods of self isolation and economic uncertainty . While practically all activities have now returned to normal , most consumers will continue with the online purchasing habits that they developed ver the past two years . According to the UOB Asean Consumer 2021 survey , 98 % of Thai consumers prefer grocery shopping online , along with 95 % for food delivery and 93 % for apparel purchases.

All generations of Thais increasingly used online media during the pandemic , particularly among Generation Z , with YouTube ( 86 % ) and Facebook ( 74 % ) key channels . Gen Z also had the highest average daily internet usage at 12 hours and 5 minutes , according to the Electronic Transactions Development Agency ( ETDA ).

Small and medium - sized enterprises ( SMEs ) now have access to a wider range of customers as a result of this growing trend . These customers include younger people to whom they might not have marketed in the past , as well as older generations with more spending power . For SMEs looking to increase revenue , it will be essential to know what resonates with their target consumers and to incorporate these insights into their business plans.

This year's Smart Business Transformation Programme ( SBTP ) , run by UOB Thailand and FinLab , focuses on providing a cross - generation digital marketing guide to help SMEs capitalise on the abundance of opportunities available.

METAVERSE OPPORTUNITY

Many brands are now focusing on the metaverse , a virtual reality experience , to reach out to younger generations who spend the most time online and are more engaged in digital culture than any other generation . According to a study by Obsess titled " The Metaverse Mindset : Consumer Shopping Insights " , 70 % of consumers who visited a virtual store completed a purchase . The survey also found 75 % of Gen Z shoppers have purchased a digital item within a video game , and 60 % think that brands should sell their products on metaverse platforms.

"The metaverse is not just a place to sell products or services , but also a community where brands and businesses can collaborate to improve their customer experience , leading to brand loyalty and new business opportunities , " says Oranuch Lerdsuwankij , the co - founder and chief executive of Techsauce Media , a leading Thai media outlet for tech startups and corporate innovation . The metaverse is still in its infancy . Now is the time for SMEs to adopt a test - and - learn mindset , to be receptive to metaverse experiments , and learn how to quickly recover from failure and capitalise on success.

GAME OF ENGAGEMENT

Gamification is another powerful tool to boost engagement , according to Panuwat Sachaviriyakul , a psychology and user experience expert and co founder of Nudge Thailand . " People have a competitive nature ; putting game - like elements into products and services could make people excited and eager for rewards , " he said . An easy way for SMEs to get started with gamification is to understand their target demographic and make campaigns simple and fun , while providing opportunities and rewards.

Gamification is a technique that SMEs can use to create relationships with their target customers and collect insights . The more a business understands the existing target audience , the more effectively it can promote the campaign . Given the access that is now available to vast amounts of data gleaned from digital tools and technologies , it is imperative that the data a business acquires can be adequately managed and analysed . As companies amass more data , the more insights they can gain and the better the service they can provide to their consumers . Business strategies , solutions and promotions should be considered when analysing all data from every source to find the perfect matched answer for customers . This data - driven mindset also helps define the most suitable marketing strategies and campaigns to reach target customers and achieve business goals.

source : Bangkok Post