The rise of China's silicon dragon
Where Chinese businesses were once derided as copycat innovators, the leading digital players have now developed into world-class trendsetters at the intersection of eCommerce, mobile and social technologies. In addition to the large cap firms like Baidu, Alibaba and Tencent (BAT), PwC’s analysis shows that Venture Capital (VC) investment value in China-based internet businesses was worth USD20 billion in 2015, exceeding that of the United States (USD16 billion) for the very first time.
China's internet players will increasingly become more established on the global landscape through:
- direct expansion into Emerging Market eCommerce, social and mobile services;
- cross border M&A of high-tech firms;
- export of disruptive business models; and
- attracting of international digital talent
Most multi-nationals (MNCs) now recognise the need to adopt an “in China for China” strategy. However, with China as a leading digital innovator, we are seeing the emergence of a “China for the World” strategy. Here we see MNCs ideate, test and scale leading edge digital solutions within China that can then be exported to other international markets.
But, what does this mean for Vietnamese businesses?
- Are you prepared to have the Alibabas, Tencents or Baidus in the Vietnamese market?
- What can you do to prepare yourself for this wave of outbound investment?
- Beyond market share, are you prepared to compete with such Internet players on resources, talent and attention?
Come, talk to us. Find out how we can help you address the questions above and any other related questions you may have.
