Asia’s new technology hubs and opportunities

30 March 2017

There are now new technology hubs emerging in Asian countries and transforming the business culture. These hubs offer new alternatives and opportunities to technology start-up firms. We have chosen two examples of these emerging hubs (Korea and Vietnam) which are set to become the next Silicon Valleys.

Why Korea will become the next Silicon Valley

Four chronological layers of development and six key variables are helping South Korea to become a new technological hub with increasing opportunities for tech start-ups. This article outlines the four layers and how they have enabled rapid growth of tech start-ups in this market. The first layer consists of Korean educational attainment. The Korean education system is one of the most intense globally, with students doing an additional eight hours of study per day. This system nurtures perseverance from a young age and increases the likelihood of success in start-ups. The second layer concerns internet connectivity and hyper-consumerism. South Korea has the fastest WiFi connectivity and widest range of connectivity in the world, while hyper-consumerism creates pressure to produce new products faster.

The third layer consists of government involvement and changes to the Korean mind-set. The government provides incentives and support to encourage more people to start up tech companies. Finally, the fourth layer is about the migration of younger Koreans back to Korea. This migration brings in new outlooks on business strategy, business culture and different management practices. Due to these four layers working in unison, start-up growth in South Korea is expected to increase exponentially in the next five to ten years which would make this country a land of opportunity for tech start-ups across the world.

Read the full article on the Asian Entrepreneur website

Why Vietnam could be the next Silicon Valley

Similarly to South Korea, Vietnam is also experiencing an explosion of tech start-ups and is quickly becoming another top technology hub in the Asian region. The key factors for this growth are the generous tax incentives and availability of a young, well-educated labour force. The start-up environment in Vietnam is currently experiencing high levels of energy, which is partly due to having a young population; many of whom travel abroad to work or study and return home to start their own ventures. While most of these Vietnamese start-ups are in the e-commerce sector, there is still room for further growth and more newcomers. The growth of tech start-ups is also on the increase due to recent investments in the start-up sector by the Vietnamese government. This support fund is meant to help even more business owners to start their projects. There are still barriers, however, such as corruption, unreliable energy access, weak legal infrastructure, lack of business leadership skills and favouritism towards local firms. Foreign investors wanting to explore local opportunities will therefore need to learn the Vietnamese way of doing business in order to succeed in the start-up scene in Vietnam.

Read the full article Asia Times website

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