[Interview]

Targeting Southeast Asian markets, Vietnam's Smart City pays off

DataStreams, a pioneer in the domestic data industry, celebrated its 20th anniversary last year. Even before such a heavily data-focused market developed in Korea, the company led by example, releasing data integration solution TeraStream as well as flagship products DeltaStream and MetaStream.

In 2016, DataStreams also launched TeraONE, an integrated platform that combines its core products to support the entire process of data management.

The significance of data has only increased to this day, and DataStreams is positioned as a powerhouse in the domestic market owed to  its premium technology and extensive product lineups.

In addition to its skills honed in Korea, DataStreams is also actively entering overseas markets.

It has already established local subsidiaries in the U.S., China, and Japan, showing that its technology will not be subdued even when competing with major global companies.

Furthermore, given the Vietnamese government's increased interest in smart city development, DataStreams participated in the "Smart City Asia 2022" exhibition in Ho Chi Minh City, showcasing its outstanding technology and products.

DataStreams entry into the Vietnamese market is no sudden phenomenon. The company has already established a local corporation (DataStreams Asia) in Hanoi in 2016 to target the Southeast Asian market, continuously accumulating large and small business results.

Following on from its excellent performance and the trust it has garnered as a result, in August 2018, about two years later, the company succeeded in entering the public market by winning the "WeGO Sustainable Smart City Preliminary Feasibility Study" project in Danang, Vietnam.

The Vietnamese government announced a smart city development strategy in 2018. The "Preliminary Feasibility Study for a Smart City in Danang City, Vietnam" project is part of the government's smart city development strategy and aims to establish an effective road traffic control system using CCTV video data in Danang City.

DataStreams was responsible for implementing data management consulting and analysis models for the system using its big data integration platform 'TerraOne', and cooperated in leading the project to success.

As the COVID-19 pandemic brought the world to a halt, Vietnam's smart city development strategy was struggling. However, recently, various smart city projects have been popping up in Da Nang and other parts of Vietnam.

In response to this, DataStreams is also speeding up its efforts to target smart cities in Vietnam.

I met with Kim Tae-Hong, vice president of DataStreams, to learn more about the current status of the Vietnamese smart city market and DataStreams' strategy."

Spreading Smart City Projects in Major Cities

"What is the goal of entering the Vietnamese smart city market?"

"In recent years, the 'Ubiquitous-City' trend has gathered pace in Korea.

U-City projects have sporadically appeared all over the country, most notably Cheongna U-City in Incheon and Dongtan U-City in Hwaseong. The goal of the smart city project is to provide citizens with convenient living, a comfortable environment, and convenient transportation by utilising technological advances for the U-City project.

Vietnam has been paying close attention to the smart city, viewing its implementation as a potential mid-to-long-term economic growth strategy for several years. In 2018, Da Nang conducted a test and verification process, but following COVID-19, several cities in multiple regions are pushing for smart cities, resulting in major growth of businesses in the industry. Korea is also providing support through the Korea International Cooperation Agency (KOICA).

However, the standard of Vietnam's smart cities is not the same as that of those in Korea.

Firstly, the basic infrastructure itself is fairly poor. If we look at how road traffic control is carried out, Korea focuses on a system that can properly utilize video data thanks to cameras that are already installed on most roads. However, in Vietnam, basic roads themselves are often poorly maintained. Before collecting data on road traffic, the roads themselves must be significantly improved, which means the development of smart cities throughout Vietnam is still just a concept. 

There are, however, some cities that are significantly more well-structured. Their infrastructures can be compared to the early 2000s in Korea, and they, therefore, do qualify as smart cities, in some regards. It, therefore, seems to have a direction to verify the feasibility and technology by conducting smart city projects centered on new cities, and to evolve by adding various latest technologies in the future.

Could you tell us more about 'Smart City Asia 2022' ?

The "Smart City Asia 2022" exhibition was sponsored by the Vietnamese Ministry of Information and Communication and the Ministry of Foreign Affairs to look at the smart city industry and technology in general. From the 26th to the 28th of May, it was held at the Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City. It was the first major event held following the COVID-19 struggle and over all three days, it attracted many visitors interested in the concept of smart cities in Vietnam. In Korea, about 20 smart city industry-related companies were selected to participate by the Korean Federation of Small and Medium Businesses and the Ministry of Small and Medium Venture Businesses. 

During the exhibition, DataStreams set up a booth separately from the Korean Corporate Exhibition Hall to promote its brand and deliver smart city-related information to visitors. Local company officials and other IT-related companies showed a keen interest in our company. The seminar received a lot of attention, particularly the part where we announced cases of building big data platforms for the formation of effective smart cities."

Big data solutions will pave the way for smart cities.

What is the role of DataStreams in Vietnam's smart city market?

"Data is more important than anything else when it comes to the range of colorful services unveiled at the "Smart City Asia 2022" exhibition. Without being well-equipped with data, no services can operate properly. Those involved in the event also sympathized with this. For example, before participating in the exhibition, I met with KOICA, and they agreed that DataStreams should participate in the exhibition, forming a consensus that data was just as important as actual smart city services.

Many Korean companies have already entered Vietnam. From large companies such as Samsung and Lotte to small and medium-sized companies, there is a strong Korean presence in the local market. However, in Vietnam, it is difficult to access domestic big data-related products. As such, DataStreams' big data management and analysis products can be of significant benefit to Korean companies operating in the local market.

DataStreams has performed outstandingly by backing winning products of global big data companies in Korea, aiding those companies operating on a global scale. DataStreams has been in the data solutions industry for more than 20 years and has all the product lineups related to data. Therefore, the company can provide the necessary services for those companies that need to establish a data infrastructure when entering overseas markets. 

What are the potential challenges when targeting the Vietnamese market?

“Most crucially, there is no basic infrastructure or data at all. Outside of the major cities, there are many places without roads or traffic lights, let alone CCTV. There is also no equipment that can measure air pollution levels or ozone concentrations to manage environmental effects. Our products will only pay off when there is a basic infrastructure in place and real data is made available. The company’s first step is to push ahead with operations in cities with smart city experience while carrying out road traffic control pilot projects like in Danang City.

Another challenge we face is the exchange rate. In the domestic market, the advantage is that DataStreams’ products are not only as strong as those of our global competitors but also lower in price. However, when it comes to the Vietnamese market, global competitor products are expensive, but our products are not exactly cheap either. To my knowledge, the value of money differs from Korea at a ratio of about 20:1. It will, therefore, be difficult for local small and medium-sized companies to actively incorporate our solutions.

What are your plans to target the Vietnamese market in the future?

"In Vietnam, the smart city market value now boasts hundreds of billions of won. Not only is the central government a key driver in smart cities, but local cities all over the country are also launching their own smart city projects. Korea is also aware of this and is providing support for domestic companies to participate in the Vietnamese Smash (I’m guessing smart but not 100%) City market. Last year, KOICA commissioned a project to target smart cities in Vietnam and decided to carry out more than 100 billion won worth of support projects over the next few years.

DataStreams is targeting the smart city market in cooperation with FTPIS, a prominent IT company in Vietnam. Since FPTIS is one of the major companies in the local SI business, it will be of great value for future business promotions. The company was established in 2016 and has stable sales and community channels, so I am confident that it has an advantage over other companies entering the market."