Itinerary:
1. Quang Trung Software City (QTSC) & SaigonTech
2. Investment and Trade Promotion Centre of HCMC (ITPC)
3. 2nd Networking Dinner
Quang Trung Software City (QTSC)
Group photo
QTSC spans 43 hectares with different sections such as IT training centres, coffeeshop, data centre (internet infrastructure), villas for IT experts, university and dormitories for students. Training centres in QTSC include Saigontech and some from India. The villas are Korean owned with Korean imported furnishes. Most of the land in QTSC is owned by project investors.
- Global Cyber South (USA company)
- Japanese owned building with many Japan companies operating within
- IT training centre from Germany (famous in UK)
- Water treatment plants for projects
- New university (under construction and belongs to Saigontech)
- Motorbike parking area
- Bus station
Saigontech
Speaker: Mr Tuan, An Nguyen
Specialises in Student Development
Saigontech was newly established in 2001 and offer programmes in IT and business administration (investor business, business management, marketing and accountancy). Currently, there are 3,000 students which is a burden on the management due to the rapid expansion (started off with 400 students). Instructors are mostly graduates from overseas, most commonly USA. Many of Saigontech's graduates persue further studies overseas, especially in Singapore where there are 20 now.
A 3 year course will cost USD4,000 which is approximately USD40 for 1 AAS credit. For students with laptops, there will be a 10-12% discount. There are plans to provide not only AAS college but also university bachelors in 1 to 2 years time. Students pay USD300 to 400 per month to study in Saigontech, which is considered expensive to them (average Vietnamese salary is only USD50 a month).
The way of teaching is different from other schools whereby the passive strategy is adopted and textbooks are provided. In Saigontech, each class has no more than 15 students and they are encouraged to do critical thinking and research (40 pages). The curriculum is more project based, depending on the course of study.
There are no foreign students at present due to issue of adaptability. However, Saigontech is expecting students from Taiwan, Philippines, China and Korea in the near future. The school has built a new dormitory (12 storey complex) for foreign students to stay in and help them adapt to the lifestyle in Vietnam.
The training centre places huge emphasis on the English language. In Saigontech, if students speak Vietnamese, 2% will be deducted from their GPA.
As there have been cases of outsiders sneaking in to attend classes without paying a fee, Saigontech employed security guards to check student IDs. This is due to the demand for education but some are unable to pay for the costly school fees.
Business Opportunities:
The setup of QTSC is evident of the effort of the Vietnamese government in developing the local IT industry. QTSC is a very attractive opportunity for IT related companies to reside in. The area is very self-contained, creating a conducive business environment. The area has all that is required to operate an IT business, such as supporting infrastructure (internet connection), training centres that will ensure a supply of skilled workers, etc. All these will reduce the time needed for a company to start operations, as the basic infrastructure is already provided. Therefore, the start-up costs may be cheaper.
In addition, the fact that there are outsiders sneaking in to attend classes, is evident of the demand for education. As the costly school fees have deterred these Vietnamese from entering SaigonTech, it would be good to set up a school to cater to the lower income group as well. I believe everyone should be given a chance to receive education. Businessmen should not discriminate against such opportunities due to the lower profit margin. Afterall, they still make a profit while doing a good deed. Social responsibility?
Investment and Trade Promotion Centre of HCMC (ITPC)
The ITPC is a place where foreign buyers come to select goods, thus many local companies display their products there. ITPC is solely for local companies, and there is a total of 52 companies participating at present. There are no sales assistants responsible for each product brand, instead, interested parties contact the manufacturer direct to order (name cards and catalogues are available).
However, there is a minimum quantity requirement for each product (e.g. 100) in order to purchase it at a discounted price. Some products can be sold individually but will cost much more (e.g. 1 bag USD50). Basically, it works like wholesale centres whereby the more you buy, the cheaper it is. After the foreign buyers have placed their orders, they can choose to export it to any country. Exports are via CIF (Cost Insurance Freight) or FOB (Free On Board).
The products are available to local buyers as well but the pricing will vary from what is given to foreign buyers - different pricing strategy.
Most of the products displayed are handicraft, artwork and furniture. For example, pottery and ceramics, rattan and bamboo, lacquer-ware, gifts (cards), picture and paintings, bronze castings, poly resin and, wood and furniture.
No picture taking is allowed inside the centre to prevent people from replicating the product in bulk and selling at a lower price.
Business Opportunities:
The business opportunities that can arise in relation to ITPC can be for both local and foreign investors. By displaying their products at the ITPC, the products gain an opportunity to be exported. This will expand the product market globally thus increasing sales.
As for foreign investors, they may source their products from the ITPC. By buying in bulk, the cost will be cheaper, the foreign investors can then resell the products at a higher mark-up overseas.
2nd Networking Dinner (Winsor Hotel)
Panel of Speakers
1. Mr Thng Tien Tan - 1st VP and GM of UOB Vietnam
2. Mr SK Nair - Education line
3. Mr Goh Boon Keem - GM Tan Chong Industrial Machinery Co. Ltd (TCIM)
4, Mr Peter Cheong - Singapore Airlines coordinator in Vietnam, Singapore Business Group (SBG) coordinator
5. Mr Benjamin Yap - Lawyer, Kelvin Chia Partnership
The guest at our table this time round was Mr Goh Boon Keem. He has been in Vietnam for 1 & 1/2 years with 30 odd years of experience in regional work. Mr Goh used to work for Tan Chong Group, Singapore, in the past. TCIM Vietnam was established 9 years ago (100% FDI) and the main product of TCIM is the Nissan forklift.
He shared with us some of the challenges he has faced during his stay in Vietnam. Firstly, the law and regulations are unclear. For example, there was a new rule that a company's regulations must be registered with the MoL which his company did not at first. As a result, they had to go down to the MoL to explain. Throughout his stay in Vietnam, Mr Goh has attended several labour, commercial and even criminal court cases.
Although TCIM has obtained the business licence, but the company is not allowed to do direct selling. Thus, any sales contract must be signed with the Singapore head office. Since TCIM Vietnam is unable to do direct sales, the company specialises in rental and servicing of machines.
Mr Goh also mentioned that the Vietnamese are quite tough due to what they have been through (war) and they are very entrepreneurial, always keen to close a deal. I have witnessed this at the Benh Thanh market where the stall owners pulled us to have a look at their stall.
The state of the road transportation network is quite bad and a trip from his apartment to his workplace can take 40mins to an hour even though the distance is not far (21km). Mr Goh added that the government has plans to improve the road network but high capital investment is required. The Hanoi Airport needs further upgrading, as for HCMC, a new terminal opened in August. Basically, passengers using the old terminal takes longer to clear immigrations. PSA is in between talks with Vietnam regarding the relocation of the Saigon Port to the South, due to the congestion. As a fellow Singaporean, I felt good to see Singapore companies establishing their presence around the world.
The most interesting takeaway from the networking dinner was to learn that some local mineral water brands are actually tapwater, which is shocking to us as Singaporeans.
Business Opportunities:
As mentioned by Mr Goh, the Vietnamese government has plans to improve the road network but high capital investment is required. This presents opportunities for investors to help Vietnam develop its infrastructure while earning a profit.
No comments:
Post a Comment