Vietnamese startups choose to set up headquarters in Singapore: CEO
Trung, who attended the launching ceremony of YGG SEA Vietnam on April 22 in HCM City, said it’s understandable why Vietnam’s startups want to register their business in Singapore.
Asked if startups and GameFi companies would come back to Vietnam to locate their headquarters here if the legal framework is perfected and becomes transparent, Trung said that having a transparent legal framework is a big plus but the headquarter location is related to many other factors as well.
Emphasizing the need for a clear legal framework, Trung said businesses feel insecure if there are not clear policies. The lack of clear policies is the biggest fear, because they cannot predict what tomorrow would bring.
“If there is no legal framework, we have to run our business in a ‘defensive’ way. We need to think about what we need to do all the time, while our brains should be figuring out business plans and project development,” he said.
“If there are clear regulations, we will understand if we can do this or that thing and if we are on the right track. It’s obvious that a clear legal framework will be helpful,” Trung said.
Startups and GameFi companies want to register their headquarters in Singapore because of fundraising. For example, when businesses want to expand in the international market, it is easier to call for capital if they have headquarters in Singapore because of clear regulations.
In Vietnam, businesses find it more difficult to implement capital call rounds, especially when they want to call for big capital, because of many obstacles. It is also more complicated to transfer money to other countries.
Many startups, including GameFi, are not large companies, and thinking about how to survive is more important than spending time on other work. Therefore, the first thing they need to do is choosing the right place for their headquarters.
“Choosing Singapore for the headquarters is not something difficult to understand. In Vietnam, it takes 3-6 months to complete investment procedures and many startups have ‘died’ during that time,” Trung said, adding that though he set up his headquarters in Singapore, he has tried to bring benefits to Vietnam.
Yield Guild Games Southeast Asia (YGG SEA) is a DAO (decentralized autonomous organization) that invests in NFT used in metaverse and blockchain-based games. The ceremony attracted many GameFi projects and cryptocurrency inverstors.