With the objective of aiding Thai and Vietnamese startups with their regional expansion plans, Kasikornbank, Thailand’s second- largest lender is collaborating with Vietnam’s Business Startup Support Center (BSSC).
There is a boom in startups and entrepreneurship in Vietnam particularly in areas of fintech and ecommerce. The government- backed BSSC will supposedly be supporting Thai companies to expand in this region according to a memorandum of understanding signed in May this year.
Hang Nguyen, who is the deputy director of BSSC informed that they will aid Thai startups understand Vietnamese traditions, politics, and business practices along with providing support in areas including navigation of the legal landscape and finding local partners and so on.
Hang Nguyen also shared that BSSC is ready to help create new Thai and Vietnamese unicorns, where Thailand is lacking even one and Vietnam is home to one: online game operator and e- trailer VNG Corporation.
With a special focus in Vietnam, Pattarapong Kanhasuwan, the chairman of Kasikornbank subsidiary KVision said the company has earmarked US$245 million to invest in Thai and foreign startups.
Pattarapong also said that they plan not only to invest in Thai and Vietnamese startups but also want to use this framework as another step to find partners in Vietnam interested to invest in other businesses there.
A startup ecosystem is being nurtured and developed by Vietnam since the year 2016.
This has been made possible with the Vietnamese government’s support which has welcomed foreign investment in high tech and communication infrastructure.
While Thailand’s internet penetration rate is just 42%, Vietnam’s is an impressive 52%, furthermore setting up a welcoming environment for Vietnamese startups in fintech and other technologies.
Although there are many companies that have the right potential pertaining to the strong demand in certain sectors, Nguyen said that it is still too early to name the Thai or Vietnamese startups with cross-border expansion plans.