Bootstrap Abroad - Cheaply Bootstrap Your Startup from Vietnam

Hackation. That's what people are calling hackathons (sponsored hackathons!) away from home. It could be in NYC, Bali, Berlin. But a lot of people are moving to the Bay Area or quitting their good-paying jobs in the Bay Area and sticking around and building their startup product from there. There are a lot of good reasons to be near Silicon Valley when you're a tech startup. Access to capital, a local consumer market who's up for and used to using experimental products.

But not every product needs to be developed in Silicon Valley. Not everybody needs to submit themselves to the pumped up rental prices there right now. Not every product person needs to be in the echo chamber of tech startup talk. Not everyone needs to live in a van just so they can afford to bootstrap in the Bay.

Haters gonna hate. Hackers need to hack.

Why Vietnam?

Vietnam? Isn't there like a war going on there? Answer: No. But due to nearly two decades of disastrous economic mismanagement by the government the country, and its remaining people (those that didn't risk their lives to escape on boats), remained in a post-war stupor until the turn of the millenium when things really started turning around economically due to open market reforms culminating in entrance to the WTO. Today, Vietnam's economic capital Ho Chi Minh City (which you may call Saigon) has a sheen of modernity to it. Western fast food chains like KFC and Pizza Hut abound. Downtown Saigon is full of new shopping malls and department stores - great for window-shopping. Young people increasingly choose between carrying iPhones or Samsungs, although Nokia still dominates. Traffic, once dominated by bicycles and rickshaws, is now completely gas-powered - but mostly scooters, not cars. Wifi is freely available and 3G internet can be had for $2/month. Of course, underneath it all is a missing public transit network, lack of public safety controls, regular brownouts, streets that flood due to poor urban planning and rapid development, an Internet that is reliant on a handful of undersea cables, and a currency that is subject to periodic devaluations. For the Vietnamese citizenry all is not rose-colored.

Low cost == Longer runway.

For foreigners though, late economic development, a huge population of underemployed people, cooling foreign direct investment sentiment, and a perenially weak currency means cheap guesthouses vie for customers, beers cost from 1 to 4 bottles per dollar, and a hacker can hack it in this country for $10-$20 a day. Are you consisting on ramen? Living in your car? Or otherwise roughing it to save money for your startup? Maybe I can convince you to reweigh your options.

Incubators, events, community

Vietnam is not particularly good at a lot of things. It's also not an Asian Silicon Valley - that's a title Singapore is trying way too hard to earn. There's no Y Combinator (okay, there was a V Combinator....) and no Google or Facebook. But we do have a scrappy and growing community of tech entrepreneurs. We have programs like Topica Founders Institute, shared work spaces like the Start Network, incubators like Officience, mLabs in the Saigon High Tech Park, annual events like Startup Weekend Ho Chi Minh and BarCamp Saigon, and smaller events like Start Me Up and Mobile Mondays.

It's not a lot but it may give you just enough sense of community to concentrate on building your own damn product. You won't overhear product pitches at every cafe (of which there's an order of magnitude way more of in Saigon than anywhere in the States).

But once you do need to hire help you will be able to do it affordably, whether for software development, testing, usability, marketing, research... While you're here, take advantage of the fact you don't have to pay Silicon Valley salaries.

Link to Silicon Valley

With all that said, there are a lot of reverse refugees from the Bay Area now living in Vietnam. After the Vietnam War (referred to here as the American War) ended and hundreds of thousands of Vietnamese, especially the educated and merchant classes, fled the new government, many of them wound up living in San Francisco and then San Jose. Others ended up in Orange County, Dallas, Houston, and other parts of the world. But today, a huge population of Vietnamese-Americans lives and works in Silicon Valley. Now that business opportunities are better in Vietnam, many experienced technology workers have returned to their birthplace to start companies. And so, thanks to their experience, today a large software industry exists in Vietnam. And many non-Vietnamese have come to join them. Maybe you'd like to be one of them?

Anyways, it may seem like a crazy idea at first. Moving to a foreign country and all. But if you're young, single, a bit adventurous, and determined to strike out on your own - or already have and are now ramen-profitable - then consider the costs: $1200 for cheap-ish rent in the Bay Area, buys you a round trip ticket from SFO to SGN. And every month of rent thereafter buys you two whole months of living nicely (all expenses) in Saigon. If you have a couple thousand bucks in the bank you can easily triple or quadruple the length of your runway by spending the time in Vietnam.

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Who the heck would retire in the Bay Area? Retire to Vietnam instead.

James (not verified)

Okay, you've convinced me... I'm heading over there asap. Seriously. Will be in touch. Thanks for a great post.

Tom (not verified)

Fantastic post... could not agree with you more. Whether it's a foreign country like Viet Nam or just another state (like Nevada where I live) being outside of the Bay Area has its advantages.

In my experience being AWAY from it all helps one be more objective and less susceptible to the latest fads.

Barry (not verified)

Nice post. Based on my short experience working remotly in Vietnam I can totally see this working for the right hacker/startup/entrapeneur.

Rita (not verified)

Great post Tomo.

tomo

Appreciate the comment. Thanks Rita!

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