Hey calm down, I’m not gonna make another long speech about macro-economics or noble patriotism. Just some thoughts about the future of Vietnamese web services in relationships with Vietnamese users and esp. early adapters.

One week ago, I had a very interesting discussion over this matter with CEO of VON - Paul Nguyen. His arguments agaisnt exotic products are:

- We Vietnamese people have to use Vietnamese products. Exotic comapnies like Google, etc. they don’t even have offices here, so they don’t have to spend so much money in Vietnam, don’t create jobs for Vietnamese but they still get users. In the mean time, Vietnamese companies have to spend millions US dollars, pay all the taxes, creates thousands jobs for Vietnamese, they should get something in return. In some countries like China, they require exotic companies to open offices in China, hire Chinese, pay taxes for Chinese governments in order to do business in China.

- Exotic products don’t necessarily mean they have better technology than Vietnamese products. Like Yahoo! 360’s technology & concept is such a lame that no where else in the world use it, except Vietnam. Yahoo! 360 plus is just a failed product in HongKong, then brought back to Vietnam. He believes Vietnamese products can do much better than that. But exotic companies have big names, and Vietnamese people are very fond of exotic things.

But he still believes in the future of Vietnamese products in general and Vietnamese social network sites in particular, b/c:

- We early adapters might find Facebook, Twitter, WordPress, Linkedin, etc. very useful and interesting. But the gap between early adapters and mass users in Vietnam is just too huge, and the number of early adapters are just so small (we have around 70k-80k facebook users compared to 2-3 millions Yahoo! 360’s users) that every service provider knows where their cash flow should go to and come from. Many Yahoo! 360’s users don’t even know how to upload a picture, they just simply hit the button “compose a blog entry” and type and send. Exotic products might be too complicated for them.

- The Vietnamese love color and show their own styles, while exotic products are normally just too simply designed. Just an example among many other differences in anguages and cultures.

He said, early adapters should use and talk more about Vietnamese products. Because if we just support exotic products, we will gradually kill Vietnamese products, let the foreigners take over us.

Several days ago was the inauguration of Nguyen Thanh Nam - the new CEO of FPT - the biggest Vietnamese IT company at the moment. One idea in his speech that drew public opinion’s attention was that he called for FPT people to use FPT’s products, not because of love only but because of trust in the products’s quality and the future of company. That might sound delirious, but is it absolutely impossible? He has his point, ofcourse.

Hm it has made me think a lot. Are we too enthusiastic about Facebook, Google, WordPress, Twitter, etc. and forget about Vietnamese products? Are we early adapters, and if yes, where do we stay if no service providers care about us?

I’m confused, though I obviously have my own explanation, but I want to hear your opinions first. Every idea is welcome. Thanks.

********************
As you all know, VON’s 3 most noticeable products are Timnhanh - a Viet search engine and Yume - a blog & social networkig site, and Kiemviec - an HR site, of which I’m interested the most in Yume - one of prominent candicates for Yahoo! 360′s substitute together with Tamtay, Yobanbe, YouSecond (Yeah in Vietnam blog means Yahoo! 360 and most people have no idea of what social network is. But well, it’s going to be shut down). According to Paul, Yume is gonna have a risky chance in June, with much more social features learned from Facebook.

Will you use Vietnam Web Services?

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This entry was posted on Friday, May 1st, 2009 at 2.14 pm and is filed under Overview, Vietnam. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

22 comments so far

 1 

Just voted and the result tells all.

2009-05-01 at 5.59 pm
 2 

Yeahh, you know me well Ban.

2009-05-02 at 12.41 am
 3 

It’s quality that matter, end.

2009-05-02 at 2.46 am
 4 

I don’t know if you can really count TimNhanh as a search engine.

2009-05-03 at 4.24 am
 5 

@Thoai Yeah, and maybe I missed something, community, right? You staywhere your friends are?
@Michael It’s a touch question ;)

2009-05-03 at 10.12 am
 6 

Some tech foreigners give me an idea “Globalizing product, localizing information”.

So if now we are not able to globalize our products, while don’t we try to localize information basing on global exotic products. That’s the way we SkyDoor are doing ;)). Of course, can’t tell you whether this is a good way, but future will be the answer!

2009-05-03 at 9.34 pm
 7 

1. Geography barrier is a perception. Welcome to the psychological game.

2. The determinant factor that devalues that perception barrier is quality.

3. “You stay where your friends are” leans toward the concept of social graph than community.
Thoai’s point was about quality of product and service, rather than social graph.

Social graph is important, but still, not as important as quality.

One example was how I persuaded my Yahoo! 360 to migrate to Facebook. The key factor I depended on in my arguments was Facebook’s quality, when at that time my friends had only me as friend on FB.

2009-05-03 at 10.20 pm
 8 

@Ngon “Globalize product, localize information” first sounds a little bit controversial. Your friend might be right, it depends on your targeted market. A cake can be a cake, but it can also be a lot of small pieces, you can localize your product for each of your targeted countries. But well, Yahoo! 360 plus is in Vietnamese and redesigned for Viet market only, it’s still not a Viet product.
@Tai Congrats, you are a big fan of Qualitism, and a great technology evangelist, Facebook should hire you to evangelize their product :)
I’ve tried to convince my friends to switch to Facebook but had little success. And most of my friends move to Facebook b/c Yahoo! 360 is going to be shut down & they have to find a destination. Otherwise they would still stick with Yahoo! 360 and their friends. Is it true for your friends?
A recent survey on VnExpress revealed that more than 51% users will stick to Yahoo! 360 until it dies.
http://www.baomoi.com/Home/CNTT/vnexpress.net/Cong-dong-blog-quyet-bam-tru-Yahoo-360/2637229.epi

And hmm, I’m a little bit dump. What’s the social graph?

2009-05-04 at 4.16 am
 9 

On the Internet, there are only languages, not nationalities

2009-05-04 at 11.07 am
 10 

@Chinh Languages and Cultures, and maybe somehthing else.

2009-05-05 at 2.41 am
 11 

Just a fact, 80% of my 360 social graph migrated to Facebook.

2009-05-05 at 6.26 pm
 12 

About Quality vs. Social Graph

Think on a longer-term:

1. Users now have certain wisdom of products

2. Users have options

3. Because of (1) and (2), they will evaluate

Scenario: A group of friend divide into 2 groups. Group 1 find the fair product_A and stay. Group 2 find the good product_B and stay. Conflict will occur as the two groups discuss and defend the product of their choice. Group 1 will try B out, and group 2 will try A out. What do you think is the result?

2009-05-05 at 6.33 pm
 13 

About Quality vs. Social Graph

Think on a longer-term:

1. Users now have certain wisdom of products

2. Users have options

3. Because of (1) and (2), they will evaluate

Scenario: A group of friend divide into 2 groups. Group 1 find the fair product_A and stay. Group 2 find the good product_B and stay. Conflict will occur as the two groups discuss and defend the product of their choice. Group 1 will try B out, and group 2 will try A out. What do you think is the result?

Now, expand the scenario from 2 to N products.

2009-05-05 at 6.34 pm
 14 

It’s about quality and it’s about brand (…of course, the two are interlinked).

I agree with some points, too many ‘blog words’ of the early adopters in VN are given towards the big international sites and too little to the local innovators, whether it’s VinaGame, thodai.vn…

So, yes, we should talk more about local products, but always measure them against their competitors, where-ever they are based or where-ever they are from.

2009-05-05 at 7.04 pm
Minh
 15 

I worked in the software / IT industry for years from engineering to management as well as business development, and I can testify that you get what you pay for. Vietnamese products are poorly designed, developed, and tested hence geared towards lower expectations. Of course, if you talk about mass local users then Vietnamese products would fit fine.

Usually early adapters are well educated and have much higher demands of quality, stability, safety, interoperability, and value added services (exotic features).

Sometimes, a security gap of 2% between 98% and 100% is great.Would you like to run a 24 hours machine that might break just by a tiny chance when you need it during the high peak of a business day?
Would you like to select from a variety of pastas or just plain traditional spaghetti?
Would you like to feed certified formulated milk to your child instead of milk from an unknown brand?
Would you like your query to be answered instantly when you have serious concerns or problems with the product?

If you answer Yes to all these, Vietnamese products are not for you.

High end users and and businesses aren’t ignorant. They make smart decisions based on the aforementioned. If the selected products do not satisfy their needs or there’s something else better within budget, they will be replaced as quickly as they were “early adapted”.

2009-05-07 at 11.04 am
 16 

@Simom Hey tell me what you find interesting in Thodia.vn? And do you consider your products local products?
@Minh Thanks for your thoughtful comment. About your 4 questions, hmm, I don’t think Viet products are really that bad. Like I don’t think it breaks down so often, nor I think it’s just plain traditional spaghetti. Yes you’re driving things back to Quality question :)

@Taitran Hmm hard to answer. I think I’ll need others’ help and blog it later. Hmm, but I think time & quality will be 2 main factors.

2009-05-08 at 2.32 pm
 17 

I’d suggest taking Mr. Minh’s points as one framework to analyze quality of Vietnamese products.

2009-05-08 at 2.42 pm
 18 

So what if Europoean people drink only european drinks anymore and wear european clothes? Who is buying the vietnamese products then? Does anyone really believe that any country in this world is independent anymore? Even North Korea gets foreign support, and Burma deals with Thailand. China, a big market, depends on exports as the US on imports. These “Buy local” campaign will lead in the opposite direction: If the country of origin is more important than what you get (quality, value) then Vietnam will loose his position in the world market immediatly. It doensn’t matter where a product is from, it matters if its a good product. Oh, since Yahoo announced the closure of 360, what Vietnamese company fills this gap? I think it was time enough to develop a proper service, right?

2009-05-08 at 3.14 pm
 19 

@Taitran:

The relationship between Group A and B is a big factor for your answer.

Most of the time, I am in Group B and I spends my time to convince ppl to move to my group.

As usual, marketers call group B : Opinion Leader. Since they are leader, they tend to persuade other group to join them.

Take exclusive Blogger network for example. It is hard to get in unless you are qualified. Once you get in, you are proud of yourself as a Group B members.

Recalling the time when I looked at Cyvee users and smiled coz I have been Linkedin for long time.

Once we expand to N products or N groups, the loudest group wins or the product paying most will win.

For VN market, most of web 2.0 services are developed by programmers not marketers hence we doesn’t have a chance to see a massive marketing campaign.

However, VNG is a big player who use Cash wisely. Every new products from VNG, we can see VNG banners at all top 100 Alexa websites/forums.

So…that’s the end of my 2000vnd. I am going to my bed, coughing again

2009-05-08 at 3.20 pm
Minh
 20 

Chip, no problems.

Per the quality regard, like I said, they would fit okay for mass local users, implying an accepted degree of quality for this segment. If you ever have a chance to hear from an experienced engineer who has worked in multiple environments, i.e. U.S. firms in the U.S. and Vietnamese / U.S. firms in Vietnam, you will get the deep truth. Think about this, google around, and answer in your head (or out here):
1. Why have so many U.S. IT businesses have failed the outsourcing model?
2. Why are most outsourced IT works limited to coding, testing, and maintenance (designing accounts for a very small percentage). Even testing already has written scripts for testers to perform.
3. How much does the language barrier affects Vietnamese people’s abilities to learn and communicate with knowledge bases out there, in comparison to Malaysians, Filipinos, and Indians.
4. Are Vietnamese inventors, or are they followers / invention & concept appliers?
5. How many hours a day do you think a typical Vietnamese worker spends and concentrates on his / her job, comparing to those in developed countries?

If Vietnamese companies and their products would like improve their stance, they’d have to fight all of the above issues, and MORE.

Going off the topic here, “good products” are usually rated on the followings:
1. Usefulness
2. Innovation
3. Technology
4. Price
5. Reliability
6. Look (necessary for some)

2009-05-10 at 1.09 am
 21 

I do have some point here.

1. Most of Vietnamese are using Yahoo for chatting, and 360 is kinda simple (but not flexible and fun, though). Therefore, people are a little bit hesitated with Facebook. Thus, FB is very very new to Vietnamese, so it takes time for the whole Vietnamese community to migrate from 360 to FB. However, absolutely, they will.

2. It is hard for one to use domestic (Vietnamese) products if they dont have good quality. Sorry guys, in fact, people don’t have the morality to do good stuff for the community. We are selfish, therefore, we all want to buy good products at the least costs. Therefore, our companies must be competitive with foreign products if they want to sell these to domestic consumers. Companies have to hit us economically but not morally.

3. There is a chance for us to do so. Since, foreign companies such as Google and Facebook do have difficulties to understand Vietnamese culture and trends, therefore, Vietnamese companies have greater advantages in using those information for competition.

My point is, quality is what matter to the game of competition. There is not morality for Vietnamese to use Vietnamese goods here. Government and business have to invest smartly and efficiently to produce good goods and hence, we will buy it as the result. Remember, we do have much more advantage compared with foreign corporations.

2009-05-20 at 9.41 am
 22 

I’m kinda agree with Thomas Wanhoff. It Globalization and we are playing in the global market, man. Vietnamese buying domestic goods is not a long-term solution. Innovation and competition is the keys. Just find our advantages compared with competitors. Use them, and we will win the game. Simple. Think about “Tra xanh 0 do^.” we did it, who want to drink Coke anymore in Vietnam.

2009-05-20 at 9.52 am

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