ABC: Year in Review

By Christopher Quang Zobrist, BS '02

Ho Chi Minh City, Vietnam

For most Americans, Vietnam is still remembered more as a war than a country in Southeast Asia. But for those who harbor entrepreneurial tendencies, Vietnam is a great land of opportunity, even during a global recession.

Vietnam is a country full of opportunities, just as the United States was back in the early days of it's economic development, and as China has been over the past several decades. Spend a few days in Ho Chi Minh City, the economic center of the country, and you'll be left with a lasting impression. The weather is hot and sticky almost all year round, and the traffic patterns are unlike any other place in the world, with hundreds of motorbikes dodging and weaving around cars, buses, and trucks. But in the current economic climate, perhaps the most striking thing is that the Vietnamese economy hasn't seemed to slow down at all, despite the rest of the world's economic woes. Ironically, the under-development of Vietnam's banking and credit system is what saved the country from a similar financial fate as the more developed nations in Southeast Asia. This resilient cash-based economy, in combination with a low cost of living and low cost of labor, makes it easy to start almost any kind of business, should an opportunity arise. And because of Vietnam's rapid development and recent ascension to the WTO, opportunities abound, both domestic and across borders.

The country's greatest asset, and perhaps what is most inspiring about Vietnam, are its people. The average age of the country is 24, and with this relatively young and decidedly enthusiastic workforce, Vietnam's population is in a good position to acquire new skills and adapt to market conditions in order to compete in the new global economy. For example, Vietnam has one of the lowest per capita GDP's in the world, yet it's internet penetration is 25% and growing, ensuring a large and highly concentrated population of web-savvy workers and consumers. And with more than 2 million ethnic Vietnamese living abroad, the opportunities for cross-border collaboration are endless.

Another interesting facet of Vietnamese society is that the social networks here are very strong and integrated into everyday life. The open and pervasive social bonds described in a recent LA Times article by Karin Esterhammer is typical for Vietnamese neighborhoods all over the country. Familial bonds are strong and expansive - a Vietnamese house often contains three generations living under one roof and it's not common for children to be uprooted to a new city or school, so "que" (hometown) ties are strong. While the national average monthly income is about $250 per month, families will pool their money together to make major purchases or to start new businesses. Vietnamese business owners help their children develop and grow into successful entrepreneurs.

Vietnamese children also form tighter bonds naturally through school. In business school, we form loose networks to support our fellow alumni professionally. But in Vietnam, from elementary through high school, Vietnamese students are taught in a cohort system, sharing the same classroom with the same 30 or so students for an entire school year or more. The friendship bonds that students form last long after graduation. By the time students reach university, students are segmented into schools that specialize in particular disciplines, such as law, medicine, sciences, technology, and business, with the brightest students being sent to study abroad. Vietnamese universities do not apply the cohort system, and because of this fact, it's more common for Vietnamese to keep in touch with their friends from middle or high school than with their friends from university or graduate school.

These tight childhood and familial bonds lead to tremendous diversity and cross-pollenization of professional interests and networks as graduates enter the workforce. These social ties can lead potential entrepreneurs to find partners, resources, and talent through social networks in order to capitalize on a specific opportunity.

Americans have been doing business in Vietnam as far back as the early 1990s, and many have met with tremendous success. Starting up a new business and running the most economically developed nation in the world are quite different propositions, but upon visiting Vietnam's fledgling stock exchange in 2006, former president George W. Bush said to a round-table of American and Vietnamese business men and women, "If I were a young man and wanted to make money, this is where I'd come."

Since 2006, Chris Zobrist has been starting new ventures and teaching entrepreneurship in Vietnam. He holds a BS from Haas, an MBA from UC Davis, and based on his passion for education, he intends to make the transition from private industry to academia soon by pursuing a Ph.D.