Can Asia’s Golden Triangle Displace Silicon Valley?

www.ozy.com [OZY]() Your World. Bold & Bright [Daily Dose]( Sponsored by [Cariuma]( The newsletter to fuel — and thrill — your mind. Read for deep dives into the unmissable ideas and topics shaping our world. Jul 19, 2022 Today Southeast Asia has a new “Golden Triangle.” For decades, the term referred to the border badlands where Myanmar, Laos and Thailand meet, and which drove global opium production. Now, the term stands also for the[ground zero of a tech revolution]( unfolding in Vietnam, Indonesia and Singapore, driven by a risk-seeking growth mindset and powerful network of startups and investors not too different from Silicon Valley. Today’s Daily Dose looks into the recipe for success that’s helping these nations rise as bases for digital innovation.  — with reporting by Sonia Sarkar from New Delhi [All We Think About Is…Going Green]( [Cariuma]( Being eco-friendly has never been easier. Say hi to your new [favorite sneaker]( – made from organic cotton and natural rubber. Stylish, comfortable, timeless, and consciously made. You can’t go wrong. Shop now with code OZY20 to snag [20% OFF]( your purchase!. This special offer is just for OZY readers. [LET’S GO GREEN]( Vietnam's biggies: Ho Chi Minh City and Hanoi Big names, big investments The people of[Vietnam love Apple products](. That’s what Vietnamese Prime Minister Pham Minh Chinh told Apple CEO Tim Cook during a visit to the company’s headquarters in Cupertino, California, in May. It turns out this love is requited. Apple suppliers, such as[Taiwan’s Pegatron](, are planning to expand their investments in Vietnam too. Intel and Samsung are other global titans that have directly invested in Ho Chi Minh City’s[Saigon Hi-Tech Park](, which is home to [46 tech businesses]( in all. Nhung Nguyen, marketing and communications manager of Hanoi-based Sun Asterisk, said the foreign investors have played a major role in funding Vietnamese startups: Vietnam attracted investments from[72 nations]( in the first four months of 2022. The[overseas Vietnamese diaspora]( is emerging as a key source of investments in the country’s tech sector — including the initial investment in Saigon’s $40 million tech park. Meanwhile,[funders originally from Silicon Valley]( are setting up bases in Hanoi and Ho Chi Minh City, Vietnam’s two big urban hubs. E-commerce boom While China and India have been grabbing global headlines, Vietnam has quietly been witnessing a surge in e-commerce, with[five of Southeast Asia’s most-visited platforms]( — Lazada, Sendo, Shopee, Thegioididong and Tiki — operating in the country, including three that only serve Vietnamese consumers. In all, Vietnam’s e-commerce sector is expected to be worth $33 billion by 2025. The sector was already growing by as much as [30% annually]( even before the pandemic, which further enhanced the appeal of the digital marketplace over the traditional marketplace. Gaming is also a fast-growing sector: In 2014,[Hanoi-based .GEARS]( developed Flappy Bird, which became one of the most downloaded apps in the world and brought the company $50,000 a day from in-app advertisements and sales before the creator killed it amid concerns that it was too addictive. Unlike young people from many other developed countries that might hope of becoming CEOs of big firms someday, a Vietnamese teenager today is likely to harbor bolder dreams, said Ngan Sau, partner at Vietnam-based ThinkZone Ventures. “I want to become my own boss or establish my own company,” is what Sau predicts the Vietnamese youth might say. “This is what I love about the entrepreneurial spirit of the Vietnamese.” C-commerce too In Vietnam, [36%]( of consumers make online purchases via chat — what is known as c-commerce or conversational commerce. Facebook’s leaning into this trend, partnering with Vietnamese company [Decision Lab]( to best understand how to tackle the country’s market. French cosmetics company [L'Oréal has also used c-commerce]( to gain traction throughout Southeast Asia, particularly in Vietnam, where its sales increased by 22%. [Nice (Kicks)]( [Cariuma]( Loved by surfers and skateboarders alike, [Cariuma]( is elevating the game by reimagining the classic sneaker. Just like these skills come (organically) for some, so do these shoes – made with organic cotton, natural rubber, vegan insoles, and recycled plastics. Practical and sustainably sourced? Now, that’s rad! Grab them while they’re hot with your exclusive [20% off]( discount code: OZY20.This special offer is just for OZY readers. [SHOP NOW]( Da Nang: A journey via Dragon Bridge Looking beyond tourism Known for the famous Dragon Bridge that’s popular [among tourists](, Da Nang is an[emerging tech hub]( where the government has poured increasing billions into infrastructure projects. Although Hanoi and Ho Chi Minh City command the lion’s share of foreign direct investment, their increasing land and labor costs are diverting many investors to Da Nang. Global IT giants see Da Nang as an option Large companies are making big bets on the city. Giants like Mitsui, NTT Data and Cisco operate in Da Nang, which also houses six startup incubators. Spread over an 842-acre campus, a[$121 million IT park]( is the centerpiece of Da Nang’s strategy to challenge Hanoi and Ho Chi Minh City. The signs are promising: Over 2018 and 2019, more than[10,000 new businesses]( opened in Da Nang. Looking ahead And Da Nang isn’t slowing down. The city is now proactively seeking potential investors from[Japan]( and[India]( to turbocharge its startup ecosystem. And the city’s[University of Science and Technology]( is providing a steady stream of trained, fresh talent to serve this blossoming sector. According to Nguyen, the Vietnamese government too has established a number of funds at state and provincial level to support startups. “The entrepreneurship and innovation skills of Vietnamese have been improved by taking part in a wide range of national and international contests and campaigns,” he said. Indonesia’s Quest Big city. Big opportunity That’s the motto appearing alongside the logo of[BSD City](, arguably Indonesia’s most ambitious urban planning project. Owned by a subsidiary of the [Sinar Mas Group](, one of the country’s largest conglomerates, the township was originally largely residential, with gated communities targeted at upper-middle-class Indonesians. But in 2017, it decided to pivot: With a $496 million budget, it’s now aiming for a future as a digital hub with an [ecosystem]( geared to support startups, technology leaders, educational institutions, creative industries players and large multinational companies. Grabbing its chance In 2019, Grab, Southeast Asia’s leading superapp, launched its first[electric scooter service](, GrabWheels, in BSD city. Meanwhile, Sinar Mas Land, the city’s developer, doesn’t want this ride to end: In May, it partnered with venture capital firms to set up a[fund dedicated to supporting startups]( that will use artificial intelligence and data analytics to offer smart tech solutions for the transportation, property and retail sectors. Knowledge and health hub Others are picking BSD City as their base too. In April,[Monash University]( inaugurated Indonesia’s first foreign university campus, with the township its base of choice. The school will be a part of a broader “[knowledge hub](.”[KlikDokter](, an Indonesian company that facilitates health agencies to serve the public digitally, moved its head office from Jakarta to BSD City to be “more innovative” with the support of the tech hub. WATCH FAREED ZAKARIA on [The Carlos Watson Show](! Singapore Where the world meets Singapore is a place where[Asian, European and American influences]( converge. With major international banks, multinational organizations and financial institutions based in the city state, Singapore has been one of the world’s leading finance capitals. Now it’s increasingly marrying those New York-like credentials with a Silicon Valley vibe: The tiny country boasts the[highest per capita venture funding]( in the world, ahead of Israel, Estonia and the United States. With a deep-rooted [innovation culture]( and strong [intellectual property laws](, the country also hosts major offices and research centers for[global tech firms]( — from Alibaba and Amazon to Facebook and Google. Health is wealth A wave of health-tech startups has emerged from Singapore in recent years. [Doctor Anywhere]( allows customers across Malaysia, the Philippines, Singapore, Thailand and Vietnam to consult doctors and get e-prescriptions through a single app. The patient intelligence company, [DocDoc](, provides an AI-powered search engine to find doctors, as well as options for telemedicine and cashless transactions with health providers. And [Aevice Health]( makes AI-powered wearable stethoscopes that record and analyze lung sounds to detect early signs of chronic respiratory disease. Big on blockchain media, entertainment startups The city is also home to 38[blockchain-enabled]( media and entertainment startups. Among them is [Marvion](, which is a blockchain-based metaverse platform that allows users to make cameos in movies and series, share photos and advertise products. [SingSing](, another blockchain-based platform, allows music artists to sell non-fungible tokens (NFTs) for their songs. Community Corner Do you think any of these emerging tech hubs in Asia could one day genuinely rival Silicon Valley? Share your thoughts with us at OzyCommunity@Ozy.com. ABOUT OZY OZY is a diverse, global and forward-looking media and entertainment company focused on “the New and the Next.” OZY creates space for fresh perspectives, and offers new takes on everything from news and culture to technology, business, learning and entertainment. [www.ozy.com]( / #OZY Curiosity. Enthusiasm. Action. That’s OZY! [TV]( | [PODCASTS]( | [NEWS]( | [FESTIVALS]( A Modern Media Company OZY Media, 800 West El Camino Mountain View, California 94040 This email was sent to {EMAIL} [Manage Subscriptions]( | [Privacy Policy]( | [Read Online](