Insights from the Australia-Vietnam Innovation EdTech Exchange

The Australian Vietnam Innovation Exchange was a key initiative aimed at fostering connections and promoting EdTech collaborations between Australia and Vietnam.

This program provided a platform for EdTech entrepreneurs and industry leaders to share insights and strategies for market entry into Australia and Vietnam with sessions covering three core areas: export opportunities, role of partnerships and new market strategy.

This program was a 2-year initiative and received grant funding from the Department of Foreign Affairs and Trade under the Australia-Vietnam Enhanced Economic Engagement Grant Program 2021.

 

Participating Companies

For the second cohort of this program we had 10 companies from Australia and Vietnam participate.

Export Opportunities

This session focused on investment and export in the education technology (EdTech) sector. The conversation covered market dynamics, institutional readiness for digital technologies, and models for expanding into new markets.

 

Speakers

Sandeep Aneja
Founder and Managing Director
Kaizeinvest

David Linke
Managing Director
EduGrowth

Takeaways

 

Expanding into new markets requires strategic thinking and deep understanding of local culture

When discussing the challenges and opportunities of expanding into new markets, Sandeep Anija emphasised the importance of understanding local culture and spending time in the target market. He also highlighted the various approaches companies can take when entering a new market, including acquiring a company, acquiring a team, setting up an outpost, or relocating the founder to the new market.

“New markets should be viewed as a new company, not just a new market in our opinion,” said Sandeep. He noted that the success of a company’s expansion is often dependent on the founder’s presence and understanding of the local culture, as well as finding the right culture fit between the organisations involved.

The role of institutions and teachers in the digital transformation of education

Sandeep shared his insights on the readiness of educational institutions and teachers in embracing digital technologies. While acknowledging the progress made in recent years, he stated that there is still a long way to go in terms of digital transformation and teacher capability.

“Capability has got two components when it comes to digital technologies,” said Sandeep. He explained that while teachers may be able to use digital technologies in the classroom, many struggle with teaching live or through recorded sessions on camera. “Most teachers are used to speaking to eyes, looking back at them. Teaching to a camera is super hard for most teachers,” he added.

Sandeep also talked about the differences in trust between public and private education institutions in Asia, with parents often seeking private education options for their children due to a lack of trust in public institutions. This creates opportunities for EdTech companies to provide solutions that cater to these specific markets.

The potential for EdTech companies to succeed in both established and emerging markets

Sandeep suggested that companies looking to expand internationally should carefully consider the market they are entering and the strategies they will employ, including acquiring a company or team, setting up an outpost, or relocating the founder.

Sandeep’s insights highlight the importance of understanding local culture, investing in digital transformation, and strategically planning international expansions for EdTech companies looking to succeed in both established and emerging markets.

Key insights

  • In Vietnam, EdTech has taken two shapes: providing better access to education for the first time and improving the quality of learning experiences.
  • English language penetration varies across tier cities in Vietnam, with higher competency in tier one cities and more reliance on local teachers for competency in lower-tier cities.
  • Australian EdTech companies tend to operate in a B2B model, while Asian companies often focus on B2C or direct-to-learner models.
  • Teachers’ capability and willingness to adopt digital technologies play a significant role in the success of EdTech deployment.
  • Companies that have been successful in expanding their EdTech offerings across different markets often involve the founder or founding team spending significant time in the new market to understand the local culture and market dynamics.

Role of Partnerships

This session focused on partnerships and market entry strategies in the Australian and Vietnamese EdTech markets. The speakers shared their experiences and insights on how to connect into these markets.

 

Speakers

David Linke
Managing Director
EduGrowth

Hanh Nguyen
Founder and CEO
Edtech Agency

Huy Tran
Co-Founder and Managing Director
Flexidata

Takeaways

 

Establishing successful partnerships between Australia and Vietnam requires customisation, understanding of stakeholders, and long-term investment

In the Vietnamese EdTech market, it is crucial to approach each customer with a customised solution, taking into consideration the unique needs and concerns of different stakeholders within schools and institutions. Huy emphasised the importance of investing in long-term relationships with partners and understanding that the decision-making process in schools can be complex. He also highlighted the value of providing consulting services and support to customers, working closely with them to deliver tailored solutions.

Localisation is crucial for successful EdTech implementation in Vietnam

Successfully implementing EdTech products in Vietnam requires more than just translating content into the local language. It involves adapting the product to fit the unique needs and requirements of the Vietnamese market, as well as ensuring that it can integrate seamlessly with local systems and processes. “Localisation is one thing that I learned during many years of partnership. So basically more than just language, localisation is also integration, it’s also how it can work with other systems in their environment, in the customer environment as well,” explained Hanh.

Navigating government approvals and policies can be challenging but necessary for EdTech expansion in Vietnam

When entering the Vietnamese EdTech market, companies may need to obtain government approval to sell their products, depending on the specific sector they are targeting. While this process can be slow and difficult, it often results in more significant revenue and long-term contracts. “In some countries, you need government approval to sell into all sectors. In some you only need to sell approval to sell into government schools,” said Han. She also shared her experience of working with the Vietnamese government, noting that their involvement in the EdTech market has fluctuated over time, but they are now actively looking for Australian companies to help bring Vietnam into a more globalised economy through English language learning and technology.

Key insights

  • In the Australian EdTech ecosystem, there are over 700 companies generating $2.9 billion in revenue, with 45% focused on K-12 schools.
  • The Vietnamese EdTech landscape has seen rapid growth in the last two years, with over 100 companies entering the market.
  • To succeed in the Vietnamese market, it is important to understand the local context and find a strong in-country partner.
  • Localisation, including language and integration with local systems, is crucial for success in the Vietnamese market.
  • In Vietnam, having government approval or accreditation can make it easier to sell products in both the private and public sectors.
  • In both Australia and Vietnam, establishing strong partnerships and understanding the unique needs of the market are key to success.

New Market Strategy

The third session focused on executive connections and strategy, with a presentation on international expansion and setting up for success in new markets.

 

Speaker

Ivar Berget
Consultant and Director
Kiah Consulting

Takeaways

 

Evaluate export readiness and consider the specific challenges when expanding internationally

Before entering a new market, it is crucial for businesses to evaluate their export readiness and consider the specific challenges they may face when expanding internationally. Factors such as having a working product or service, financial stability, sufficient bandwidth, and available capital are essential for success. Ivar suggested that companies should first exhaust their home market before thinking about international expansion.

Ivar emphasised the importance of understanding why companies want to export and ensuring they have a strong foundation in place. “Having a working product, the economics work, that you have enough bandwidth and enough cash, you can solve for them later, but still have a working sort of solution or hypothesis around where you want to go and how to do it,” he said. This process involves critically reviewing market entry opportunities, developing actionable strategies, and driving aligned outcomes.

For businesses looking to expand from Australia to Vietnam or vice versa, Ivar recommended considering factors such as demand and product-market fit, economic tailwinds, and doability. He also advised companies to be flexible, as success may come in unexpected ways or require adaptations to their initial strategy or plan.

Focus on building a strong business case and adjusting strategies as needed during execution

To determine when an export strategy or market entrance strategy is ready for execution, it is important to build a strong business case that considers factors such as revenue, costs, and resources. This process can help identify potential challenges and opportunities and ensure that the strategy is aligned with the company’s goals.

Ivar explained that building a business case allows companies to think through their assumptions systematically, as well as assess the profitability and potential return on investment. “Is this actually the best way of spending my capital at this point in time? And if it’s still yes, then that’s really great. Then I think you can sort of turn that strategy into a plan,” he said. Once the strategy is in place, it is essential to remain flexible and adapt to changes or challenges that may arise during execution.

When entering a new market, Ivar recommended that businesses be prepared to pivot and adjust their strategy or plan as needed. This may involve changing their approach to reaching customers, adapting their product or service offerings, or altering their resource allocation. He emphasised the importance of learning from these adjustments and revisiting the business case to ensure continued alignment with the company’s goals and objectives.

Establishing a local presence and partnerships can be key to successful international expansion

For businesses looking to establish a presence in a new market, it is essential to consider factors such as local partnerships, access to customers, and the need for a physical presence. In some cases, a local office or sales centre may be necessary to build credibility, engage with customers, and comply with local regulations.

Ivar noted that establishing a local presence can depend on the specific needs of the business and the market they are entering. “If it’s bigger deals, bigger sort of purchases, you probably would need a local presence. One, because they’re longer sales and then operationally it makes sense to have someone here as opposed to flying all the way,” he said. Additionally, building relationships with local partners can help companies navigate market entry challenges and provide access to valuable resources and expertise.

In the case of Vietnamese companies looking to expand into Australia, Ivar suggested focusing on building partnerships with local organisations and understanding the unique challenges and opportunities in the Australian market. This can help businesses adapt their strategy and plan effectively, ensuring a higher chance of success in their international expansion efforts.

Key insights

  • Ensure readiness to export with a working product, profitable financials, sufficient bandwidth, and capital
  • Review and select target export markets based on demand, product-market fit, economic tailwinds, and doability
  • Develop a realistic entry plan and work on it in parallel while being flexible to adapt to changing circumstances
  • Consider partnerships, product quality, and contracts to protect relationships in new markets

Learn more about the Australia-Vietnam EdTech Innovation Exchange.