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by refurb 805 days ago
I'm guessing because you don't have to.

A friend's fintech company in Vietnam (it's one that you know) was pretty much told to make room in the C-suite for a very well connected family member to the Northern power brokers. I agree there is no requirement to have a Communist Party member join the company, but someone with connections? Sure.

It matters whether it's a local versus foreign company. If it's run by Vietnamese (or Viet Kieu) or run by foreigners. It mostly depends on how much money is involved, as a small local business is small potatoes, but when you're talking about the companies raising $100M USD in a round, it starts to matter a lot.

And my friend's company wasn't exactly opposed to it, since it's a symbiotic relationship. Have a problem with getting a license? Having "that guy" call his uncle who sits on the regulatory body can expedite it. Of course, you have to share in the wealth so sweetheart investment deals get offered in return.

He told me you can't make it big (think the equivalent of Stripe in the US) without those connections because if you don't, your competitor will and suddenly you'll find that permit you were told would take 3 months has been "delayed".

Anyone who tries to get government approval for things like licenses, etc knows it's a painful process even for the routine stuff. Now image trying to do something "different". The usual response is "you can't do that". The system is pretty much set up to require a back channel to the people in the government who can make or break a company.

2 comments

Yes, it’s amazing how naive HN is when it comes to these things. This place is super useful for technical knowledge but insanely useless when it comes to situations where lived experience differs from “official” ways the world (is supposed to) work.
The pushback you're receiving is likely due to saying "every company".

The post above says something more along the lines of "large, prosperous, specifically targeted companies".

> you can't make it big (think the equivalent of Stripe in the US)

Hehe. We might be 2nd or 3rd degree connects. Are they that fintech HQed near the crescent mall?

> The system is pretty much set up to require a back channel to the people in the government who can make or break a company

Exactly. Welcome to "emerging markets"

> when you're talking about the companies raising $100M USD in a round, it starts to matter a lot

Lower rounds too. Big reason I got spooked by the VN scene. It's exactly the same kinda shit you'd deal with in China, India, or Indonesia, but way less RoI.

Kinda sad honestly, there is a lot of talent, but leadership and policymakers there don't have the breadth needed to make the next Thailand or Malaysia (despite having the right fundamentals).

If they can attract the successful 2nd and 3rd gen Viet Kieus in the US, Canada, and Australia (the Harvard, UCLA, UNSW, UToronto grads) at the policy level, I think there is a lot of potential.