Vietnamese Google Rival Challenging Global Giant

Information technologies are creating new business opportunities across the global South. As more and more people gain access to the Internet in one form or another, opportunities to offer them services also increase.

A number of key trends show how the Internet’s profile is being reshaped by the growing number of users from the global South. One of those trends is language. English was the first language to dominate the Internet – but this is changing, according to the latest data.

China has the largest number of Internet users in the world (China Internet Network Information Center) and the Chinese language is the second-most often used online, behind English and before Spanish and Japanese (http://www.internetworldstats.com/stats7.htm).

While most English-language users turn to the giant Google search engine to look things up on the Internet, Google also has many rivals chasing its tail. In China, Baidu (baidu.com) offers searches in Mandarin using Chinese characters, making the Internet easier to navigate for Mandarin speakers. Elsewhere, Arabic language Internet users are being offered new services and urls using Arabic characters.

In short, the Internet is becoming multilingual, customized and local, and creating new opportunities with it.

One new business in Vietnam is challenging Google with its own locally tailored search engine. Called Coc Coc (http://coccoc.com/) – Knock Knock in English – it has already spent US $10 million to hire 300 staff at its Hanoi base, according to the Associated Press. Whether Coc Coc is successful or not in the long term, it is clear as a business it is already helping the local economy by hiring so many people and investing in Vietnam. Google currently does not have any staff in Vietnam because of its concerns about legal conflict with the government over censorship of content on the Internet, AP reports.

Coc Coc believes it has developed a system that better understands the grammar, syntax and nuances of the Vietnamese language. Another advantage it believes it has over Google is its large presence on the ground in Vietnam. With a headquarters in Hanoi, it can quickly make marketing deals and agreements with content providers. To further its local advantage, Coc Coc has dispatched camera crews and photographers to film and photograph streets and log the details of shops, cafes and businesses – all to make search results more accurate and richer in detail.

The headquarters is spread out over four floors of a downtown office block in Hanoi, and according to the Associated Press has a relaxed atmosphere similar to that found in many places in California’s technology start-up culture.

Coc Coc is a joint Russian-Vietnamese venture and is hoping to ride the fast-growing Asian Internet market by offering a search tool that understands the nuances of the Vietnamese language online. By using algorithms (https://en.wikipedia.org/wiki/Algorithm) it promises to give a faster and better search experience to Vietnamese-language users. It also uses its knowledge of the local scene to  tailor results to users’ needs.

The plan is to spend US $100 million during the next five years to lure 97 per cent of Vietnamese Internet users to make the switch from Google.

“When I came here, I had some understanding why Vietnam was a good market to beat Google,” said Mikhail Kostin, the company’s chief search expert. “But after living here for one year, I understand the language and market much more deeply. I’m sure it’s right.”

Having a local search engine tool can be a successful approach. The Yandex (http://www.yandex.com/) search engine in Russia beats Google in the Russian-speaking market. In South Korea, there is the Naver (naver.com) search engine.

Google battled it out with the Chinese search engine Baidu in 2010 before leaving the country when Google refused to abide by government censorship guidelines. Baidu in the meantime has become the number one search engine in China and is planning to expand to other markets throughout Asia.

“Google is a foreign company, and they are not here,” said one of the three founders of Coc Coc, Nguyen Duc Ngoc. “We can serve the interests of the local market better.”

Vietnam has been experiencing rapid economic growth since the introduction of the Doi Moi (https://en.wikipedia.org/wiki/Doi_Moi) economic reforms two decades ago in 1986.  Vietnam is fast becoming an Internet success story, with a third of its population of 88 million (World Bank) (http://www.worldbank.org/en/country/vietnam) now online. Many are accessing the Internet through their mobile phones and electronic devices.

Vietnam connected to the Internet in the 1990s and the infrastructure was built up in the mid-2000s. A national plan that kicked off in 2005 accelerated take-up of the Internet in the country as more and more people accessed the Internet through mobile phones, often at home, rather than just in public Internet centres. One study found 71 per cent of users in major cities were accessing the Internet at home (https://opennet.net/research/profiles/vietnam). One in three people in Vietnam now has access to the Internet. Significantly, the Internet has been an overwhelming success with youth in the main cities of Hanoi and Ho Chi Minh City, where 95 per cent of people in the 15-to-22 age group has Internet access.

Optimists point to Vietnam’s large youth population, fast-growing economy and its modern Internet infrastructure as advantages that will boost its Internet economy. This is attracting entrepreneurs and investors from across Asia and around the world working in the field of online content, e-payments systems and other online services.

With Vietnam’s Internet scene on fire, many people and companies are piling in to come up with the Next Big Thing online. Many have failed, but the same is true in every other country where new information technologies have been introduced. The nature of information technology innovation means ideas quickly rise or die depending on whether Internet users find the innovation useful or attractive. Despite great ideas, there are often far too many factors at play to guarantee any one person or company will have a success on their first try. As has happened elsewhere, ideas hatched by small start-ups, if good, are gobbled up by larger companies. Talented and skilled people usually find themselves being chased by other companies.

By David South, Development Challenges, South-South Solutions

Published: August 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Vietnam Launches Low-Cost, High-Quality Video Game

 

The creative economy offers huge opportunities to the countries of the global South. With the proliferation of new technologies – mobile phones, digital devices, personal computers with cheap or free software, the Internet – the tools to hand for creative people are immense. This begins to level the playing field and allows hardworking and talented people in poor countries to start to compete directly with those in wealthy countries.

One case of this dynamic at work is the computer and video games industry. Once, they were only created by ‘first world’ nations like Japan, the United States and the United Kingdom. And then came South Korea, as its prosperity increased through the 1980s and 1990s. And then China got in on the game. And India.

And now innovators in Vietnam are using the medium to make money, and tell a story from a distinctly Vietnamese perspective. And that story is the long-running Vietnam wars that engulfed the country, from the 1950s through the 1960s until 1975 when the last of the United States’ helicopters left Saigon, then the capital of South Vietnam.

Emobi Games (http://emobigames.vn) from Hanoi, unified Vietnam’s current capital, uses the motto “Enjoy challenges.” Launched in 2011 by founder and director Nguyen Tuan Huy, it has created 7554, a game that places players in the shoes of a Vietnamese soldier during the independence war against the French. Cleverly, it also comes at a competitive price: US $12.

The game’s name refers to May 7, 1954, the day the French army in Dien Bien Phu surrendered to the Vietnamese People’s Army. This led to the end of the European colonial power’s occupation of its Indochinese colonies. The high death toll and sacrifice from the wars with France and the United States still resonate in the country, and the game reflects this.

A young team of 20 developers worked on the project for three years. It cost the company an estimated US $802,748 to complete. It was extensively researched to ensure historical accuracy.

“Dien Bien Phu is a great victory that we are proud of. That day, 7th of May 1954, is a symbol of our strength,” Huy told Ars Technica (http://arstechnica.com).

“I think it is similar to what Americans feel when they celebrate July 4th. Independence is very important and something worth fighting for. It is also something worth honouring.”

The game is the end product of an intense struggle to prove critics and sceptics wrong. Many doubted the company could deliver a product that could compete with the more established players. The video game market for firstperson shooters – where the player uses a weapon to engage in first-person combat – has been transformed in the last decade. Many games are highly sophisticated products akin to major films. The Call of Duty (callofduty.com) franchise is a good example. These games have elaborate graphics and story concepts, often use professional actors and come with high-cost, high-publicity marketing campaigns to back up game launches.

The money at stake is significant: the global video games market is estimated to be worth US $65 billion in 2011 (Reuters). Game makers Activision Blizzard, makers of Call of Duty, had an annual revenue of US $4.8 billion.

On its website, Emobi proudly takes on the doubters: “We are a very young company in Vietnam, currently we focus on one task: Building a successful PC Video Game for the Vietnamese. Most Vietnamese don’t believe that Vietnam can produce (a) PC Video Game.

“We, the young people, think about this as a challenge, and want to overcome that. Maybe we will fail, maybe we will succeed. But that’s not important. (It is) Important that it must be time for the Vietnamese Game.”

Huy admits it was a struggle to make the game.

“Video games, films or any kind of entertainment in our country must adhere to certain standards,” explains Huy. “Entertainment must not be too violent or too sexy. Our government policy is stricter than other countries, especially when compared to Western countries.”

Vietnam regulates gaming in various ways including limiting how long people can play online and the opening hours for Internet cafes.

Out of a population of over 86 million people (World Bank) it is believed Vietnam has 12 million video gamers: a substantial market in the country alone. They play games from around the world and increasingly are willing to pay for legal licenses. This is a key development, since getting gamers to pay represents a revenue stream. With revenue, players in the global South can contribute to the building of their home-grown businesses to become big players.

“The video game industry is just in its infancy,” said Huy. “We only have four studios that develop major games. Most work on online games. There are not many people who work in game development. Those that do are self-taught. There are no universities that provide education in games development. We learn by doing, failing and doing it again until we get it right.”

Viewing warfare through non-Western eyes is part of the game’s unique selling point, Huy says.

“American gamers have not been exposed to many war games where they play as a soldier who is not of American or British background. I think some may find this perspective refreshing.”

Huy said that “7554 may give some gamers a new perspective. But what is most important is that we create a game that is fun to play.

“We think we have created a game that FPS (first person shooter) shooter fans will enjoy. The price point is low so that will hopefully allow more people to play the game. I think gamers understand that a good game can come from anywhere in the world. I think gamers are willing to experience different cultures through games, so long as the experience is enjoyable.”

The 7554 game is scheduled to be launched in the United States and France in February 2012 for personal computers.

In the future, the company hopes to raid history for more battle scenarios to create new games.

“Unfortunately there have been many battles fought, so we have a full history to pull from in order to create games,” Huy said.

By David South, Development Challenges, South-South Solutions

Published: January 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Bolivia Grabs World Media Attention with Salt Hotel

 

Tourism is a great way to attract foreign currency to a country and build local economies, especially in remote or isolated places. But the catch is finding a way to get people to go the distance and come and visit and spend their money.

In a global South twist on the well-known Ice Hotel in Sweden (www.icehotel.com) – a hotel entirely built out of ice – enterprising Bolivians have built a hotel out of salt.

A Bolivian hotel in the middle of the world’s largest salt flats has found a clever way to attract tourists to this remote holiday destination: build the hotel entirely out of salt, right down to its furniture.

The South American nation is one of the poorest in Latin America, and its income distribution is among the region’s most unequal. Bringing in foreign currency and attracting more tourists can help to reduce this poverty. According to the World Travel and Tourism Council, travel and tourism will contribute 2 percent to the country’s gross domestic product (GDP) in 2011. Around 75,000 jobs are directly dependent on the tourism business in the country and this is projected to rise to 96,000 jobs by 2021.

And it is a good business to be involved in: “Travel and tourism is one of the world’s great industries, providing 9 percent of global GDP and 260 million jobs; it drives economic growth, business relationships and social mobility,” according to David Scowsill, President and CEO of the World Travel and Tourism Council.

The Hotel de Sal Cristal (http://www.hosteldesal.com/?L=2), near Colchani, hosts guests who come to visit the salt flats of Salar de Uyuni (http://en.wikipedia.org/wiki/Salar_de_Uyuni). They are believed to store 50 to 70 percent of the world’s lithium supplies and an economic boom has started in the area. The striking and blinding white salt flats were featured in the James Bond film “Quantum of Solace.”

The hotel’s unique construction from rock-hard salt hewn from the salt flats is working to encourage tourists to stay longer in the area during their holiday. Before, they would just take a quick excursion on to the salt flats before moving on to their next destination.

The Hotel de Sal Cristal is built using blocks of salt cut from the surrounding flats. The architectural design is inspired by the ancient Chinese balancing philosophy of Feng Shui (http://en.wikipedia.org/wiki/Feng_shui). Following the principles of the philosophy, it faces the sun and balances both masculine and feminine energies. Shaped like three coca leaves, the feminine side, this balances with the more masculine side reflected in the salt flats, the hotel’s website claims.

The hotel has 27 rooms with hot water and heating. – and beds made of salt. In the dining room, people can sit on chairs made of salt and eat at salt tables. The rooms are wall-to-wall salt, bright and white.

The hotel’s pool is surrounded by sand-like salt.

The hotel’s ‘Resto-Bar’ offers views of the salt flats and promises it will “allow the cosmic energy…” to flow freely.

The menu offers llama meat and risotto of quinoa (http://en.wikipedia.org/wiki/Quinoa) alongside traditional Bolivian dishes, salads and soups and Bolivian-themed treats.

The hotel has an ‘astronomic observatory’ for star gazing, making the most of the low level of light pollution on the flats.

One of the hotel’s tour guides, Pedro Pablo Michel Rocha from Hidalgo Tours (http://www.salardeuyuni.net/), told the Daily Mail newspaper: “I love it when visitors come to this place for the first time.

“They can’t get over the fact that everything is made out of salt and I’ve even seen a few people lick the furniture to make sure!

“It is a wonderful experience to come somewhere like this where they’ve used the natural materials available to create something like a hotel.”

The salt flats, formed from prehistoric lakes, have a salt crust hard-baked by the sun with a pool of salty water underneath which is rich in the rare element lithium. Lithium (http://en.wikipedia.org/wiki/Lithium) is sought-after for its use in things like re-chargeable batteries for mobile phones, computers and electric cars.

The area’s economy has boomed since 3.4 million tons of lithium – believed to be half the world’s supply – was discovered underneath the salt flats.

The power of tourism to alleviate poverty has been documented by Caroline Ashley, co-author of Tourism and Poverty Reduction: Pathways to Prosperity (http://www.earthscan.co.uk/?TabId=92842&v=497073), after extensive research on tourism’s impact on poverty in countries across Africa andAsia.

She argues that “tourism can fight poverty.”

“Note, we say ‘can’, not that it always does. The share of spending by tourists within a destination that reaches poor people can vary from less than 10 percent to a high of 30 percent,” Ashley told BusinessFightsPoverty (http://www.businessfightspoverty.org).

“When it works, international tourism is actually a very good way of channelling resources from rich to poor. In destinations as diverse as hiking on Mount Kilimanjaro in Tanzania, business tourism in Vietnam and cultural tourism in Ethiopia, between one quarter and one third of all in-country tourist spending accrues to poor households in and around the destination.”    

Ashley said a successful tourism strategy needs to focus on “the 4Ps: pay, procurement, persuasion and partnership.”

“Pay a living wage to local employees; take a hard look at procurement and potential to source locally … persuade – or at least inform – your clients how to take up opportunities to spend in the local economy…” and build a partnership with government to integrate tourism into the local economy.

And it looks like the hotel can’t get more connected to the local economy than being made of the very salt that surrounds it.

By David South, Development Challenges, South-South Solutions

Published: November 2011

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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