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Setting Up Shop in Southeast Asia

An Entrepreneur Abroad

By dana blouinPublished 6 years ago 9 min read
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Becoming an entrepreneur and starting a business is challenging and can be downright scary in your hometown, let alone another country. But for those willing to pack up and head to Southeast Asia the market is ripe and the opportunities abound. That doesn’t mean it’s all unicorns and rainbows, there are just as many challenges for foreigners doing business in the region as their are benefits. In this article, I’m going to map some of those out for you by location.

Mobile First

Before I jump right into some of the markets here in the region, I want to point out that every market here is a mobile first market. Pretty much meaning that across the region, mobile is the primary device used by consumers. In some countries this is because they didn’t take part in the internet boom that happened in the first part of the century and the desktop era was skipped altogether. For the most part, the markets are all very open and accepting of innovations in the mobile space, breaking down a lot of barriers to adoption.

So, if you're in the tech space and mobile is your focus, then this region offers some very interesting opportunities for you to explore.

Picking the Right Market

Just like picking the state where you would incorporate a new startup (Delaware, if you don’t know already, the answer is Delaware), picking the right country and even city in Southeast Asia is important. Looking at what each of the countries offers, how much runway you have, and where you might be most comfortable are all key factors. I live in Bangkok so I might be a bit biased... Maybe just a bit, don’t be shocked. That being said there are a ton of great locations to choose from. Let’s run through them.

Singapore

Easily the most advanced economy in the region. This island nation feels like a more modern, clean, and crime-free version of NYC that's just just so happens to be plopped at the southern tip of the Malaysian peninsula.

There are some serious advantages to setting up shop in Singapore that you aren’t going to find anywhere else. For starters, it’s just super easy to do business, you can set up your business in about a day, and compared to the rest of the region, corruption and bribery are fairly non-existent (I’ll touch on this a few times in the article). Pretty much any business you have to do in Singapore that involves the government will be smooth, and that is truly unique to the region.

The other main benefit to setting up shop in Singapore is that you will have direct access to investors, most of whom are located in Singapore. Because of the infrastructure that is built up in Singapore there is more capital available and a solid network of investors around every corner. I have spent a fair amount of time there pitching and raising capital. Regardless where you end up setting up shop you will more than likely make the trip here to pitch and raise capital. Besides investors, there is also a fairly deep talent pool (both local and expat) which will make things much easier as you start to staff up.

On the flip side of this coin, Singapore is going to be the most expensive option for you to set up shop and live. By far, Singapore is just as expensive, if not more than many major US cities. There is, however, almost no crime in Singapore, and education is fantastic. So if safety tops your list or you have school-age children, it might be worth the spend.

Another downside, and this one is purely opinion, I think that Singapore feels a bit sterile. It’s very orderly and by no means a city that sparks my creative juices from a business perspective. That might be something you like though, as I said, this one is purely opinion.

Vietnam

This one has popped up on a lot of startup founders' radar over the past few years. Because Vietnam is still very affordable, it has seen a massive boom in the startup ecosystem. Founders are flocking here to lower overhead and extend their runway. Most of the action is focused in Ho Chi Minh City, and that is where my experience with founders has revolved. It has really developed into the startup hub for the whole country.

Like most of the region, doing business in Vietnam is full of challenges, you will face just as much bribery and corruption as you will in most other Asian countries. There is also a fairly shallow talent pool in Vietnam, I would say the most shallow on this list, but with the ever-expanding ecosystem that is changing by the day.

That being said, if you are not looking for a dev or engineer with a very rare skill set, then you are more than likely going to be able to find someone. Local salaries can range from a few hundred dollars per month up to about $1500–$1600. Overhead is extremely low in Ho Chi Minh City as well, the lowest on this list, by far. I have a friend who is ramping up a startup there right now who is covering all of his personal expenses, including rent, food, and office space for less than $1200 per month, not too shabby.

Allow me to inject a bit of personal opinion on Vietnam. Their coffee is amazing, it has a dark, chocolatey body that just blows your taste buds away. If you want scenery, like epic movie scenery to enjoy while you sip that amazing coffee, then this is the country you are going to want to set up shop in.

Indonesia

Indonesia has so much going for it and at the same time so much going against it. For starters, it’s a massive country that has launched the biggest startups in the region, if it’s a Southeast Asian unicorn it’s come from Indonesia. The talent pool is just ok, but it has the strongest investor network outside of Singapore.

With that in mind, the bureaucracy, corruption and bribery in Indonesia is second to none. Hands down, the worst I have seen, ever, and that’s saying a lot. There is a ton of red tape, and it seems every time you turn a corner there is someone with their hand out ready for a bribe.

Those might seem like strong detractors for doing business in Indonesia, and they are. But like many of the governments in the region the Indonesian government is making a concerted effort to make business easier for startups. Unfortunately that governmental desire is not yet a reality. You have a decent talent pool in a densely populated country with a ton of resources. There is a reason their startup ecosystem booming despite their shortcomings. But if you want it, you’re really gonna have to put up with a lot to get it.

Honestly, I could go either way on Indonesia. Jakarta as a city isn’t my cup of tea (coffee, cup of coffee) and I have always found that doing business there to be more trouble than it’s worth. But that’s just me, there are many entrepreneurs out there right now killing it in Indonesia and loving every second of it.

Thailand

Bangkok, the city of angels, the urban oasis I call home. It’s a desirable location for entrepreneurs because their budget can stretch pretty far while still offering an exceptional quality of life in a city that has a rich and well developed startup ecosystem. Now, it’s not as cheap as Vietnam to live and do business, but it’s still significantly cheaper than Singapore.

Five years ago when I arrived in Thailand, the startup ecosystem was fledgling. There were only a handful of players, an even smaller subset of them were funded and the talent pool was shallow. Today it couldn’t be more different; countless new startups pop up each day, it seems I'm hearing weekly of startups getting funded or new investors setting up shop in Bangkok. As a result, the talent pool has never been deeper.

While much like Indonesia, the government in Thailand has a focus on developing their digital economy, they even have a policy in place called Thailand 4.0 that lays out a road map to get there, but if you have ever tried to use a map in Thailand you know how that goes. Just like Indonesia the reality is far from the concept and there is still a lot of bureaucracy to face; however, I can say from experience it is dramatically less today than it was a few years ago.

At the end of the day, setting up shop in Bangkok has its ups and downs. It’s affordable, the quality of life is great, and the food, oh man, the food is out of the world (try somtam). True, it’s not the easiest country to set up shop in, but in my opinion, the positives outweigh the negatives and the current government is making significant strides to improve the situation. And the food, did I mention the food?

What About the Test of the Region?

Of course there are a lot of other countries in the region that I skipped over, and while they might be a good match for some, I have found that for a lot of entrepreneurs coming to the region, these markets aren't a great fit. That being said, I’m still gonna show each of them a bit of love.

Malaysia

Malaysia has an awesome tech scene and amazing food. They probably should have made this list. Actually Malaysia could have a whole article on their own. Kuala Lumpur, Penang, and Kota Kinabalu are all fantastic cities to do business in, so if the above four don't tickle your fancy, give those a look. They each fall somewhere between Bangkok and Jakarta on the spectrum.

Cambodia

Cambodia is a fun, affordable country. It’s actually easy to set up an do business there, but it has a super shallow talent pool and lack of developed ecosystem if you want to scale.

Laos

Laos is a beautiful country. It’s still very rural and underdeveloped. There are some interesting opportunities in more traditional sectors, but there is still a high barrier to entry for foreigners.

Philippines

This is an interesting one because the Philippines are an English speaking country. However, there is lots of corruption (a ton of it), and that is coupled with their fairly shallow talent pool for tech workers.

Myanmar (Burma)

In my experience, Myanmar has almost nothing going for it from an entrepreneur's perspective. They have the worst traffic I haver ever seen (in Yangon), tons of corruption, a very shallow talent pool, and then there's that whole ethnic cleansing thing they have going on right now, ya know, the one being overseen by a Nobel Peace Prize winner.

So, where should you go?

That, my friends, is a question I can’t answer for you. Each business is going to be different, each opportunity is going to be different, and you have to pick the one that is best for you. Hell, you might even find that you want to set up shop in Myanmar (though I can’t imagine why).

When it’s all said and done though, one of the biggest benefits of being in Southeast Asia is that each country is just a few hours from all the others. Once in a single day I had to fly to meetings in three different countries and still slept at home in my bed that same night.

The region is made up of diverse and unique ecosystems. You can function inside a single one, spread out across several, or just as easily launch global operations from any of them. You just have to find the situation that's right for you.

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About the Creator

dana blouin

Super Villain!

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