Engineer brings e-commerce home

Entrepreneur Nguyen Hoa Binh, manager of the Peacesoft company, was named a pioneer of Viet Nam e-commerce by the Financial Times. Binh speaks about his career.

What attracted you to e-commerce?

I’m someone who is experienced in buying and selling; I’ve had practical experience in small-time trade, since I’ve been travelling to foreign countries since the early 2000s, when the internet was still in its very early stages.

I understand the three main concepts of e-commerce: price (the ability to hunt for a good price), convenience (remote buying and selling, anywhere at any time) and wide selection (plenty of choices for goods and sellers without leaving your seat).

Because people spend an increasing amount of time and money on-line, we’ve decided to go for Business to Customers (B2C) and Customers to Customers (C2C) e-Commerce.

Do you think e-commerce will develop in Viet Nam? What are its advantages and disadvantages?

E-commerce has been developing everywhere, from Western countries to emerging economies in Southeast Asia, and it has proved its strengths over traditional commerce. I definitely believe that e-commerce has a bright future in Viet Nam.

At the moment, Viet Nam’s emerging e-commerce market is still in the early stages.

Shopping remotely is fun and convenient, as long as you trust the people you are trading with. As Viet Nam integrates into the world economy, our partnership with eBay will enable Vietnamese to buy and sell any single item on http://cbt.chodientu.vn to any other eBay market around the world, especially the USA, without any difficulty.

As a buyer, you can buy things cheap or get items that are unavailable in Viet Nam. As a seller, handicraft villagers can sell their products directly to foreign end-buyers with double or more profit.

Why did you choose eBay as an ideal model for your company?

"EBay is an open socio-economic system," said Meg Whitman, eBay’s former chief executive officer. With more than 240 million registered users, the management of the largest on-line market place requires macro-economic skills and experience.

Unlike Amazon, which was expensive to develop, management technology must be meticulous and, most importantly, the rate of return must not be higher than the market model. EBay has no inventory, no goods, no direct-sales, just the management of people-to-people relationships.

I love this, and I also think it has a lot of business potential.

At the age of 27, you have been a manager for seven years. How do you feel about the period of time when you began to establish Peacesoft?

The company started with the "five-nothings": no infrastructure, no office, no human resources, no financial investment and no brand awareness. Many friends joined but later left; only two founding members stuck it out and are now earning a lot from our efforts.

My thinking during that time was, first, to become a student with a lot of free time for the next three years. Second, I wanted to try doing something related to my profession after graduation. If successful, then I would start my own business and not need to look for a job. In addition, the experience, knowledge and relationships acquired would add to my personal value.

Our tactics for that time were to make software for sales and to enter domestic and international competitions and scientific conferences to gain exposure. We had the advantage of being young. Awards and encouragement from society and the media helped to build a good brand image, which helped advance the company.

Many consider you a prime example of a successful entrepreneur. What qualifications do you think make for a successful businessman?

Although [my company] started in the technology sector, to me, organisational and management skills are the most important for success.

Last but not least, knowledge about the profession and experience is also indispensable. The manager of a business should be able to adjust to advances in his area of expertise.

The current economic recession may not be a good time to start a business, but to me, the three most important things are perseverance, patience and a bit of luck.

Can you tell readers about any business idols you may have, like Bill Gates or Donald Trump, and explain why you admire them?

My idols are global business investors like Warrant Buffet of Patrick McGovern [IDG chairman] because, on top of any business, investment and finance experience, human resources are a decisive factor in success.

Aside from e-commerce and IT, which fields are you interested in?

Financial investment is my next destination. During my first four years [in business], a lack of investment capital led many interesting business opportunities to slip through my fingers. This taught me that timely finance and management experience is essential, especially during the start-up phase.

After long hard hours spent working in the office, I prefer competitive and team sports, like tennis to unwind. My typical day is mostly work and then a little bit of play, if it is a stressful day. Health is also an essential part of leading a successful and happy life.

Are you involved in politics? Did you intend to run for a seat on the National Assembly last year?

I was an official candidate to be a National Assembly delegate for Ha Tay Province in 2007. Just a try.

What role did your family and your fiancee have in your career?

When I first set up the company, I was very young. The freedom I was given by my family was already a good support. My wife has shared both my work and personal life for quite a long time, since my company’s start-up, so our compatibility has been confirmed.

My wife is also one of my most important colleagues; we have shared our life and work for the last five years and got married last month. (VNS)