smentor.ac.vn – According to Prof. Phan Van Truong, one of the factors destroying Vietnam’s ecology is the ideology of obtaining wealth at any cost.
7 Prerequisites for a Successful Startup
Share your ideas with over 500 new entrepreneurs at a Startup and Management Club event in Ho Chi Minh City. Prof. Phan Van Truong highlighted some characteristics of the Vietnamese startup community in Ho Chi Minh City, according to a portrait of the Vietnamese startup community: “The majority of companies have unique and interesting goods but have not been proven in the market.” Have some capital, are prepared to borrow, but don’t know how much capital is required. There are one or two partners who are eager to accompany but have not yet confirmed that they are on the same page. Want to hurry into starting a business because they are concerned that their brilliant ideas and goods may become obsolete. The product diversification approach of the giants is not clearly the most competitive rival. There is no collaborative effort…”
In comparison to the portrayal of the startup community in the United States, Mr. Truong stated that in the United States, the concept was present from the start, but the startup community only engaged in product development after identifying a niche market with a need. A clear plan for creating value for whom, how to sell that value, and then calculating feasible capital. To be secure, simulate the business model in every detail using the parameters. Estimation of overall risk, classification of acceptable and unacceptable hazards.
While in Vietnam, not only startups but also businessmen continue to operate despite the fact that they face prohibitive dangers.
In the United States, startups have a written strategic partnership contract, internal regulations are explicit from the start, and separate is a usual expectation. When it comes to intimate friends, Vietnam frequently avoids this.
In the United States, they would rather remain adversaries at the bargaining table than work together indefinitely. Strategic contracts must occasionally operate as if they are the adversary, with a functioning chart of time, expenses, and extra capital; all contributions are detailed. While exceeding the expense in a very simple manner. They know what the current worth of the firm and the shares are at any moment there is an interruption.
The United States startup is placed in a vibrant, busy, and diverse ecosystem. A start-up atmosphere with quick administrative paperwork, a full legal corridor, and expert and experienced lawyers on hand.
Prof. Phan Van Truong’s book “Một đời quản trị” clearly highlighted 7 requirements for success in beginning a business, emphasizing that the product is not the most essential, nor does it need to be new; a new bottle of old wine is also nice, and an old bottle of new wine is also great.
In this case, the ecosystem is the result of a trusted partner in technology, production, marketing, distribution, packaging, and so on, in response to market need and innovation. He claims that many enterprises that employ software to save labor fail because labor in Vietnam is still too cheap.
“Comrades invest and work together, invest together, the ecosystem is a market that allows you to locate skilled staff and partners eager to invest.” It also helps to have a contract and a platform in the ecosystem. In terms of financing, the ecosystem here is quite broad, ranging from parents, relatives, close friends, banks, investment funds, but most importantly, calculating the correct beginning capital, so companies may collect money right away.
The United States has a great commercial and legal climate, but France does not. Meanwhile, there are a few things in Vietnam: support, a thorough legal framework, no funding for companies other than real estate, and no market for buying and selling startups… However, there are numerous resolute slogans!
In the United States, when a firm has to be sold, other businesses see its worth and are willing to buy it back; there is no such thing as bluffing. They only lie to each other during contract negotiations.
The business model and strategy must be designed in such a way that the machine generates income as quickly as feasible. Freedom is a highly strong business model; in the United States, the ecosystem streamlines and safeguards all transactions. A startup’s value is always in a liquidity model, such as purchasing an app.
A powerful and wealthy advertising market is effective assistance. Business strategy is fashionable and involves luck; credit cards must be extensively utilized to allow enterprises to develop swiftly. Timeliness is also a need in the creation of an ecosystem. If Grab and Uber do not have 3G and GPS, they will perish immediately.” Prof. Phan Van Truong has been added.
The state is the “rule maker” for the ecosystem.
Prof. Phan Van Truong addressed the event’s more than 500 entrepreneurs, saying, “Going to any major corporation, I also say: Please don’t yell slogans anymore, simply offer targeted assistance to startups.”
According to Mr. Truong, starting a business in Vietnam is difficult; it takes approximately ten thousand successful startups, which implies there must be 100,000 startups and significant investors prepared to pump 1 to 10 billion VND into these firms each year.
To be successful, a different value must be created, even if it is the same sort of service or product, yet many firms in Vietnam undermine the difference value by lowering prices.
“Don’t expect people to buy inexpensive items; instead, expect them to get exactly what they desire.” Get rid of the bearish attitude since it does not lend itself to sound thinking. “Don’t assume that having the first client is a success; this is a dead-end; if you’re not cautious, you won’t have a second customer,” Mr.Truong said.
Mr. Truong stated that the idea of getting money at any cost is the mindset that damages the ecosystem: “For example, the building sector is lowering prices, resulting in an increase in construction site accidents and low-quality materials on a daily basis.” more. Because the real estate market is so hot, everyone wants to develop as soon as possible, leading many projects to be erected too rapidly, resulting in apartments without balconies being a very unpleasant problem. A mayor in France was imprisoned for permitting an illegal and waterlogged plot of land to become residential.
There will be no accidents if all contractors agree not to exceed the industry guidelines. The building business must have a floor price; the rules of the game must be fully up to the investor in order for the sector to stay competitive.
Underprivileged investors would have died a long time ago if Vietnam had a true market. When the real estate market froze, 30 thousand billion VND appeared out of nowhere, but the farmers who sorely needed finance did not notice. For real estate professionals, we have extremely clear and effective policies, although, in many other fields, it is simply a phrase. The core of a typical ecosystem is that everyone is both a cause and an outcome.
However, do not criticize anything that must alter; the ecosystem will emerge at some time. When you construct a tiny ecosystem, it will generate new ecosystems on its own. By itself, the ecosystem optimizes the advantages of the whole community, placing the entire team on the correct track.
It is an ideal abundance when an environment is created in which everyone is free to judge, entirely free to do business, and receive an income equal to the value they generate. Only the ecosystem can achieve this, so that no matter whatever nation presses the US, everything will be OK; on the contrary, when the US presses someone, that country will suffer.”
In order to contribute to macroeconomic management, Mr. Truong believes the government should abandon its support for the “leading birds.” I am preparing to finish my fourth book, which will focus on establishing policies for the country that will benefit one hundred percent of the typical society, creating domestic consumption, and building a new atmosphere that will help Vietnam become a great power.
Numerous sections of Vietnam are currently uninhabited, with many villages consisting solely of elderly people; similarly, in France, one euro may purchase a whole hamlet. We need to repopulate the desertified area, safeguard farming, and privatize land. Recognize the significance of the startup ecosystem, as well as small and medium-sized businesses.
The ecosystem only occurs when all partners across the country first engage vigorously, capital is dispersed equitably and not concentrated in any one area, and agriculture and local development are prioritized. You must have a sufficient number of individuals to produce the desired space. There are many metropolitan places that are currently deserted, and people are coming to Ho Chi Minh City and Hanoi.
Because Vietnam possesses tourist attributes that other nations do lack, tourism investment will most likely be successful. Agriculture also requires a lot of effort; if you invest in information technology, you also need to invest in social security, such as people’s security and network security.
A countrywide ecosystem can only emerge with an integrated planning system, a high-coverage intercity transportation system, a dynamic and comprehensive commodities distribution system, and the safeguarding of the original market. Administrative processes must be stringent and swift. Fortunately, there are no international shops capable of dominating the distribution system; otherwise, things would be much more difficult for us. To have a Google or Microsoft, one must be conscious of the challenge of 100,000 startups.
Our country’s focus is on small and medium-sized businesses, not giant corporations. If you want to build an ecosystem, you must first map the components that are directly and indirectly linked to your activity. Even if you are short on resources, if you can persuade 60% of the people, you will be able to convince 40% of the people.
When Kimura constructed the ecosystem, various animals and insects dragged themselves into the garden without having to look for them. For example, there are three meals to pick from in the Binh Thanh district, which is only three steps away. Phu My Hung, on the other hand, is not an ecosystem because it is still quite empty at night. When there are 10 restaurants, it is normal for many more to open.
“The concept of an ecosystem requires little work, but it requires the essential materials to produce life and a flow of financial exchange.” Unfortunately, many billionaires do not invest their money in the economy. Ai There is also a desire, but who establishes the flow, context, and rules of the game so that all those aspirants may work together to build a robust startup ecosystem? It is the government.
We will build an ecology for others if we modify the rules of the game. The person who creates the rules of the game has the ability to produce abundance and outcomes. Macro-policy is critical in the creation of the environment. If implemented incorrectly, the policy has the potential to devastate the ecology.
I volunteered to be the first to lay the groundwork for the ecosystem, beginning in Saigon and progressing to Da Nang and Hanoi… We shall be affluent for a thousand years if we can figure out the country’s karma and the role of Vietnam. This is the thesis that we have not yet completed.
The goal of an ecosystem is to produce something lasting, sustainable, and meaningful to you and me. Make an ecosystem in each person’s life that will undoubtedly alter.
Starting today, you’ll see that even beggars might be drawn into the ecosystem in search of a better life. Ants, snakes, and mice must have a home in the environment, not just those with more than $10,000.
Let us construct an environment in school for children, and each individual should attempt to create an ecosystem for his family and loved ones near him, not elsewhere,” Truong underlined.