On August 30, ten prominent South Korean startups in Vietnam and investors from South Korea and Vietnam gathered at the Vietnam Korean Startup Entrepreneur Network (VKSEN) event at the Inter-Continental Hotel (Landmark 72) in Hanoi. The event was hosted by The Invention LAB Inc, an innovation advisory firm and startup-accelerating institution.

The 10 South Korean startups were selected to introduce their products and services at separate booths in the event area. The CEOs of the startups also held presentations on their activities and vision.

OKXE is a brokerage service provider that has pioneered the online-to-offline (O2O) sale of used motorbikes. Gomi, meanwhile, is a commercial platform that signs exclusive contracts with famous South Korean brands to connect to Vietnam, Thailand, and India. Go2Joy provides a hotel booking support service in Vietnam. ABC Studio provides a platform for fashion information focusing on Vietnamese women aged from 20 to 30. Vibey manages the Reviewty platform for cosmetic product reviews. Beberia provides an e-commerce platform aimed at breastfeeding mothers, while YAHO provides on-demand in-home childcare focusing on playing and learning. Bitglim is an OTT streaming content service provider based on digital technology in both Vietnam and South Korea. Space T is a startup in the furniture and furniture brokerage market. And ODA is a service for hotels, restaurants, cafés, and bakeries to order ingredients easily.

At the event, Mr. Simon Sungmin Byun, Founder and CEO of the Go2 Joy Vietnam Joint Stock Company, told VET that he saw great opportunities in the Vietnamese market. The reason for investing in Vietnam is its friendly people and culture. The growth potential of Vietnam’s economy is another factor. Promoting awareness about the company’s services is, however, a challenge.

In discussing the motivation of startups to invest in Vietnam, Mr. David Kim, CEO of The Invention LAB, told VET that: “The South Korean market is too small and very competitive, especially in the startup field.” Large companies, known as Chaebol, dominate the South Korean market in every field and every industry. That means that small-scale companies like startups find it very difficult to succeed.

So, the solution for startups is to do business in other countries. But it can be quite difficult to access the European market. In China, meanwhile, startups face difficulties from the impact of Covid-19, while the US is a typical market for South Korean startups.

“South Korean startups are looking at Southeast Asian markets, including Vietnam, which are fast growing,” said Mr. Kim. “Samsung Electronics and other major South Korean companies have also invested in Vietnam.” He added that labor is one of the problems facing startups in Vietnam.

The VKSEN event was first organized by The Invention LAB Inc in 2019. The following event was delayed due to the outbreak of Covid-19. The August 30 event was the second The Invention LAB Inc has held after Covid-19, attended by prominent South Korean startups in Vietnam. On this occasion, The Invention LAB also wanted to explore investment possibilities for South Korean and Vietnamese investors.

It has been 30 years since South Korea and Vietnam established diplomatic relations. Vietnam is now one of the fastest-growing countries in Southeast Asia and an attractive investment destination, with its youngest generation emerging as the main purchasing force, according to Vertical Platform, a website operated by The Invention LAB. South Korean startups have quickly entered large-scale markets in Vietnam such as tourism, hotels, and e-commerce. In addition, some South Korean startups are also participating in emerging sectors such as childcare, digital content, interior construction brokerage, the F&B market, and so on.