University of Minnesota MOT Graduate Program

Copyright © 2010 No part of this presentation may be reproduced in any form without prior authorization.

Master of Science in Management of Technology (MOT) program

Saturday, April 3, 8:30‐ 11:45 a.m.University of Minnesota, Minneapolis

Final Project Briefings for the 15th International MOT ProjectSingapore / Vietnam

27 February – 13 March 2010

Minnesota Opportunities in Singapore and Vietnam


Technological Leadership Institute (TLI) at the University of Minnesota

Established in 1987 with an endowment from Honeywell Foundation.

An interdisciplinary center housed in the Institute of Technology (engineering, mathematics, and physical sciences college)

TLI has five endowed chairs, and has an additional 47 top‐notch faculty from across the eight University of Minnesota colleges, government, and industry

Expertise in the interface of science, technology, infrastructure security, management, business, strategy, innovation, leadership, and policy

Developing Local and Global Leaders for Technology Enterprises


What Does TLI Do?Master of Science degrees– Management of Technology (1990)– Infrastructure Systems Engineering (2000)– Security Technologies (2010), with options for

the MS and MS/PhD minors.

Short Courses, Seminars, and Certificates– Certificate Programs and Summit Certification– Rochester Signature Series “Best of

Technology Management”– Customized Leadership Training and Courses– Foresight After Four

Research and Consulting

Web site: <tli.umn.edu>


Technology in MOT Is…Any application of science– Broader than software or hardware

Areas– Research, processes, products; end-to-

end – from ideas in the lab to the marketplace

Examples− Gene therapy/bio tech, sensors, security

technologies, fuel cells, new composites, nanotech …


Business of Technology:*The MOT program

empowers managers and executives in their strategic

vision to leverage technology to grow

businesses

*Dr. Robert Solow, Nobel Laureate in Economic Sciences and MIT professor: Technology drives over 60% of the U.S. economy.

>>PROGRAM GOAL

>>PROGRAM GOAL


Individual & InterpersonalEffectiveness Skills

Knowledge of Business, Entrepreneurship &

Innovation Fundamentals

Technical Engineering Expertise and Skills(Absolutely necessary but not sufficient)

Team Collaboration &Value Creation Skills

TechnicalTechnicalExpertiseExpertise

Innovation Leadership

Critical Knowledge and Skills for Professionals in Tech-Intensive Environments


The Students>>The Students>>ExperiencedExperienced–– 1212--14 yrs work experience, on average14 yrs work experience, on average–– 3636--38 yrs old, on average38 yrs old, on average–– 5 or 6:1 male to female ratio5 or 6:1 male to female ratio

Diverse expertiseDiverse expertise–– R&D, operations, consulting, quality, engineering, R&D, operations, consulting, quality, engineering,

information systems, intellectual propertyinformation systems, intellectual property

Varied responsibilitiesVaried responsibilities–– Senior engineers, senior consultants, Senior engineers, senior consultants, managersmanagers, project , project

or team leaders, business or science/technical unit or team leaders, business or science/technical unit liaisons, directors, entrepreneurs, chief officersliaisons, directors, entrepreneurs, chief officers


Job satisfaction increased from 62% to 77% Managerial and executive duties increased after the program with 83% of alums in technology management-related positionsFeel MOT prepared them for current jobs (86%) and career path (95%)Use MOT in key areas of their jobs:

・ Strategic management and grasp of business concepts (98%)・ General management (95%)・ Collaboration and team building (92%)・ Critical thinking and problem solving (90%)・ Verbal Communication (90%)・ Technology foresight and forecasting (85%)・ Leadership (84%)

2009 Alumni Career Impact>>2009 Alumni Career Impact>>


Graduate Years: 1992‐2008 Before MOT After MOTManager 36% 37%Executive 9% 33.2%Engineer 36% 14%Information Systems (non engineering) 12% 9%Business owner 0% 1.4%Scientist 4% 1.4%Other 3% 4%

>>2009 Alumni Survey: Job Functions >>2009 Alumni Survey: Job Functions

Out of the 531 MOT alumni, over 33% are executives and over 50% of the remaining alumni report that they hold management

positions or have management responsibilities.


The MS-MOT Alumni >>The MS-MOT Alumni >>5-8 years

Before MOT After MOTManagement 32% 42%Executive 1% 27%R&D 28% 12%Marketing 1% 6%Design 18% 4%Manufacturing 6% 4%Business owners 0% 3%“Other” 15% 2%


Management of Technology (MOT) program

International MOT Project (MOT 8950)


•Each year, the MOT international project committee in TLI explores possible locations. The committee considers options to meet the planned goals of “developing an international perspective on management of technology and contrasting emerging and established companies, countries, technology, foreign-owned versus local, and government versus private sector, among other factors, in concert with the Center’s mission,” says Dr. Massoud Amin, TLI director.

•“It also provides an ability to develop a coherent intellectual structure within this region/country and an understanding of complex issues in the global management of technology. We are constantly in the learning mode, trying to find new locations, new sites to visit, and new contacts.”

•The international MOT project plays an important role in preparing students to assume greater leadership responsibilities in the global market and it lays a foundation for students to tap throughout their careers.

•“It gives them an important perspective on the management of technology,”says Dr. Amin. “It helps them in a systematic and integrated manner to see and investigate the impact of a strategic global vision.”

Master of Science in Management of Technology (MS‐MOT)

International MOT Project (MOT 8950)


Int’l MOT academic and industry exposureContrasts: Economies, technological capabilities, types of high-tech industriesMOT perspective of: Economic, social, political, governmental, business environments 2nd year -- last/spring semester -- 12-14 daysSites selected by TLIPre- and post-trip assignments

Management of Technology (MOT) programInternational MOT Project (MOT 8950)


Technological Leadership Institute (TLI)Management of Technology (MOT) programMOT 8950 (Int’l MOT Project)

2010 Singapore and Vietnam2009 Singapore and Kuala Lumpur2008 New Delhi and Bangalore2007 New Delhi and Bangalore2006 Shanghai and Beijing2005 Dublin and Munich2004 Dublin, Berlin, Dresden and Wolfsburg2003 Dublin, Wolfsburg and Hamburg2002 Reykjavic and Dublin2001 Kuala Lumpur and Singapore2000 Shanghai and Singapore1999 Shanghai and Singapore1998 Shanghai and Singapore1997 Shanghai and Singapore1996 Singapore and Beijing


The 15th International MOT Project 27 Feb – 13 Mar2010Singapore / Vietnam

2010 MS2010 MS--MOT MOT

International Residency OutbriefsInternational Residency Outbriefs


IMTP 2010: Teams and FociHealthCare Industry: Opportunities for Minnesota‐Singapore CollaborationDave Johnson, Jeff Stan, Jeevan Prasannakumar, Jon Gamble, Monica Gupta

Opportunities for the Medical Device IndustryShelton Peeples, Samuel Will, Jeremy Todd, Sam Ye,

Michael Fletcher, Jesse Haakenson

Entrepreneurship in Singapore and MinnesotaRobert Krukoski, Catherine Slattery, Andy Bronczyk, Joshua Sheppard, Brad Weber, Jon Grzeskowiak

Renewable Energy Opportunities in Singapore and VietnamCraig Bibeau, Todd Gardner, Jacob Johnson, Kaustubh Patil

Vietnam: Two Examples of “Low Tech” Disruptive Business OpportunitiesHarpreet Kathuria, John Marsolek, Mark McNitt,

Anh‐Thinh Nguyen, Viswanathan Sivaramakrishnan

Vietnam: Opportunities to Learn From SingaporeMike Bell, Omeeda Rahim, Matt Sandnas, Cale Schwalm


SingaporeOverview


SingaporeOverview

March 1-8, 2010

Key Observation Implications OpportunitiesPro‐industry Government • Planned economy

• Strong high‐tech• Cheap foreign labor vs locals

• Incentives for R&D, high‐end manuf.• Public policy

Lack of Resources • “Partners not allies”• Striving for self‐reliance• Dependent on geopolitical stability

• Energy, Health, Defense• Singapore’s regional leverage

Asia 101 • Transport Hub• Large number of MNCs• Thriving educational system

• Regional hub, even if Singapore isn’t a big market• Sourcing Asian talent

Group‐Think • Cohesive population• Failure not tolerated• Struggling to be creative

• Entrepreneurs highly sought after• Bright Singaporeans @ U.S. startups


SingaporeOverview

March 1-8, 2010

Resources Available for US Companies:

Services Web Site

American Chamber of Commerce

• Business Development• Introductions / Networking • Singapore Information• Job Listing• U.S. Company Advocacy

www.amcham.org.sg

US Embassy • Provide Basic US Civilian Services• Law enforcement cooperation• Trade Control

singapore.usembassy.gov

Economic Development Board (EDB)

• Talent Recruiting• Tax Credits / Advantages• Industry‐Gov’t Liaison

www.edb.gov.sg


VietnamOverview


VietnamOverview

March 3, 2010Vietnam

Key Observation Implications OpportunitiesSkill labor shortage Difficulty attracting MNC –

(Intel)Improve education

Age Demographics (65% under 35)

Large young work force MNC can leverage young work force, buying power

Government incentives Attractive draw for manufacturing, and MNCs

Gateway ASEAN & MNC

Infrastructure challenges Difficulty scaling, transportation, pollution, waste mgmt

Potential market for infrastructure MNC

Corruption Scare MNC because of IP security, and unfair competitive practices

Open market by ensuring no corruption through successes


VietnamOverview

March 3, 2010Vietnam

Resources Available for US Companies:

Services Web Site

U.S. Consulate Business DevelopmentIntroductions/NetworkingVietnam InformationJob ListingU.S. Company AdvocacyProvide Basic US Civilian Services

http://hochiminh.usconsulate.gov/

Office of Naval Research Provides technical advice of capability of Vietnam to NavySupport President’s budget by investing in technologies that may help NavyTrade Control

http://www.onr.navy.mil/

Dong An Polytechnic/Industrial Parks I & II

Manufacturing Industrial ParksEducation of Skilled Workforce

http://dongan.edu.vn/

http://www.dongan‐group.com.vn/aboutus/home_detail.php?category_id=4


Site Visits – Singapore

• U.S. Interests– U.S. Embassy

• Corporate Visits– iWOW– Philips

• National Strategy for Business– Economic Development Board– A*STAR

• National Strategy for Technology– National University of Singapore


United States EmbassyDescription of the Organization’s Mission:

Nurture military links, law enforcement cooperation, trade control, promote U.S. business and trade, citizen services (21,000), strengthen counter-terrorism cooperation, cooperate on regional issues

Name and Title of Briefer:Peter Thorne – Economics Officer – handles the Macro issuesDon Thompson – handles the Micro issues

Key Findings:Close partners, not allies – want neutralityStable Government led by Lee Family (Political Action Party)

English speaking, corruption freeEconomic Development

60’s Labor, 70’s Skills, 80’s Capital investment,90’s technology, 00’s knowledge

Planned Economy (Mfg 25%, trade 16.4%, …)Largest container port, world’s 3rd largest oil refinement

ConcernsEconomic disruption, Avian Flu, regional security, labor costs and availability, credit card fraud

March 1, 2010Singaporesingapore.usembassy.gov


Economic Development BoardDescription of the Organization’s Mission:

Create a compelling global hub for business, investment and talent. Create sustainable GDP growth for Singapore with good job and business opportunities for its people. EDB’s approach is Dream, Design, Deliver.Facilities worldwide scout for best-in-class technologies that can be re-created in Singapore.

Name and Title of Briefer:Mr. Ralph Foong – Head, Transport EngineeringMiss. Geraldine Goh – Assistant Head, Energy, Chemicals & Engineering Services

Key Findings:Manufacturing and Services is the Key part of the economy18.4% of GDP – Twin Engine for their growthGrowth in Electronics and Biotechnology recentlyEase of Doing BusinessWorld Bank ranks Singapore to be # 1 for doing business7000 MNC’s. 60% of Regional/ Global Headquarters is based in Singapore – Home in AsiaNew Economic powerhouse as stated by Fareed ZakariaStrategies for the FutureHome for Business – Asia markets are growing, diverse and complex. Provide a vantage point for business kickoffHome for Innovation – Utilize Singapore as a living labUrban Solutions – ERP to minimize congestion, membrane technologies for waterHealth and Wellness – Provision of Healthcare to mitigate future challenges – Aging population, Changing diseases, etc.Lifestyle Product & Services – Singapore 2020 – ‘A City Alive’ Live Work PlayHome for Talent – Singapore Link to harness global talent

March 2, 2010Singaporewww.sedb.com


A*STARDescription of the Organization’s Mission:The Agency for Science, Technology and Research (A*STAR) is Singapore’s lead government agency dedicated to fostering world-class scientific research and talent for a vibrant knowledge-based economy.

A*STAR actively nurtures public sector research and development in Biomedical Sciences, and Physical Sciences & Engineering

A*STAR currently oversees 14 research institutes and nine consortia & centers located in Biopolis and Fusionopolis, and supports extramural research with the universities, hospital research centers, and other local and international partners.

Briefing:We received briefings from six subsidiaries of A*STAR:DSI, IHPC, GIS, IME, SIMTECH and Exploit Technologies

Key Findings:A*STAR strives to help Singapore develop into a world-class scientific research hub by building up three types of capital: human, intellectual and industrial

March 1-8, 2010Singaporewww.a-star.edu.sg


iWOW Technology Pte LtdDescription of the Organization’s Mission:

Inspiring the world of wireless. Translating your product vision into realities. Name and Title of Briefer:

Lee Yao Chiang – Chief Executive Officer, IWOW Connections Pte LtdKey Findings:

IWOW Business ModelEstablished in 1999, iWOW Technology Pte Ltd has two wholly owned subsidiariesiWOW Connections Pte Ltd – A global provider of wireless technologies in the M2M market and mobile communications like GSM, GPRS, and 3G technologies.iWOW Communications Pte Ltd – Providing the full value chain from R&D, engineering design, testing, consulting, and marketing. They assist partners in developing products and solutions for clientsNever first mover in technology, practice “fast follow” techniquesCannot compete on salary with MNCsMix of fresh graduates and recruits from MNCs

iWOW’s Key SuccessesAugust 2009, iWOW awarded Asia Pacific Emerging Industrial Wireless Company of the Year 2009 by Frost & SullivanNovember 2007, iWOW Ranks 13th at Singapore’s Enterprise 50 Awards August 2007 iWOW Named as "Red Herring 100 Asia" Award Winner for 2007

iWOW Partnership ApproachContinue to partner with corporation like Texas Instruments to fast follow the marketPartnered with Israel-based CartaSense, a developer and manufacturer of agricultural wireless real time monitoring solutions

March 2, 2010Singaporewww.iwow.com.sg


PhilipsDescription of the Organization’s Mission:

Grow a diversified global business, deliver more products of value, simplify the operating model.

Name and Title of Briefer:Wong Lup Wai – Chief Executive Officer - Philips Electronics Singapore Pte., Ltd.Loo Chian Yi – Vice President / General Manager Innovation Site – Singapore Philips Consumer Lifestyle

Key Findings:Philips Global

Established in 1851, 160,000 employees world-wideGlobal footprint with presence in 104 countries, Global HQs in EUTransformed from an electronics company to a Health and Well-being Company, ten years ago.

BusinessHealthcare, Consumer Lifestyle, Lighting

Philips in SingaporeStrategic Operation set-up to help Philips do business in ASEAN, Japan, China, and IndiaEstablished in 1951, 2500 employees4 main activities:

Philips Innovation campusRegional HQs and Competence CenterSales OrganizationIndustrial operations and support

Singapore Learning Center—First and largest dedicated facility for advanced medical equipment training

March 3, 2010Singaporewww.philips.com.sg


National University of SingaporeDescription of the Organization’s Mission:

Accelerate Singapore’s transformation to a knowledge based economy by boosting domestic R&D talent and attracting and keeping globally trained knowledge resources.

Name and Title of Briefer:Prof. Chang Chieh HANG – Director MOT Program, Director of engineering and technology management, Government A*Star technology advisor

Key Findings:Singapore as a gateway to the East

3% of GDP spend on R&D – $9b US.IP protection and enforcement are top priorities and differentiate Singapore in the region.Strong pro-industry government policy supporting small to medium enterprises (SMEs) as well as multi-national corporations (MNCs) to create R&D labs in Singapore, e.g., Phillips, GE Water, Siemens

Sustaining Business ActivitiesInvestment in human capital through heavily subsidized scholarships and importing key talent, i.e., sea turtles and whales.Integration with Exploit Technologies (A*Star) – R&D at NUS teaching industry.Short list of high priority research areas, e.g., Infocomm, biotech, electronics, chemicals.

Strategies for the FutureEuropean foresight process used to map future trends for the country.Looking for disruptive “Good Enough” innovation in small dynamic organizations – Clayton Christensen.Siemens SMART model – Simple, Maintenance friendly, Affordable, Reliable, Time to marketPurposeful R&D to create disruptive technologies – C.K. Prahalad books guiding strategy.Position Singapore as a disruptive innovation hub by reverse innovating – remove advanced features to position existing technologies in home and new markets.Integrative design thinking for Bottom Up Pyramid (BOP) markets, i.e., keep designs simple and low cost for greatest impact in burgeoning ASEAN markets as well as China and India.

www.nus.edu.sgMarch 4, 2010

Singapore


MOT 2010 IMTP Site Visits 27 Feb – 13 Mar2010Singapore / Vietnam

2010 MS2010 MS--MOT MOT

International Residency OutbriefsInternational Residency OutbriefsHo Chi Minh City, VietnamHo Chi Minh City, Vietnam


Site Visits – Vietnam

• U.S. Interests– U.S. Consulate

• Corporate Visits– Intel Microelectronics Lab– MobiVi Corporation– VinaGame

• National Strategy for Business– Dong An Industrial Park I

and II

• National Strategy for Technology– Ministry of Science and

Technology– Dong An Polytechnic

School


Consulate General of the United States

Description of the Organization’s Mission:To promote bilateral relations by managing Economic, Political, and Public affairs.

Name and Title of Briefer:Doug Sonnek; Senior Economics Officer

Key Findings:Over 60% of the population is below the age of 30 and in 10 years that will be a larger proportionAmbassador has said currently it is “the best relationship ever, but issues remain.”Vietnam is ever more important as shown in ASEAN membership, APEC hosting, and 4 top level visits since 2005Vietnam admires the Singapore model of economic growth with high level of controlVietnam is one of Obama’s 6 top countries focused on in Economic planA few billion dollars each year are spent on traveling out of the country for medical treatmentTop goal is developing academic relationships with US schools and doubling number of students exchangedChallenges

Ensuring workers fair treatment and rightsCorruption remains a challengeHigh cost of locally trained bookkeepers/ lawyers (tax)Strong lobby efforts of both Veterans and Vietnamese immigrants impact policy on Vietnam

March 9, 2010Vietnamhochiminh.usconsulate.gov


Consulate General of the United States

Description of the Organization’s Mission:To promote the growth of Exports from the US in Vietnam

Name and Title of Briefer:James W. Mayfield; Principal Commercial Officer

Key Findings:The office will act as liaison and advocate for US companies looking to sell into Vietnam – brokering meetings, help finding distributors, fostering relationships, explaining etiquette, vouch for US company – minor fees apply90% of time is spent on specific cases doing marketing and business developmentEmerging urban consumer class, positive reform, high level of disposable income, demand for infrastructure and technology are all opportunities in VietnamThe goal is to double the US export trade in the next 5 yearsExports to Vietnam have grown from $1.6 billion to $16 billion in 10 yearsChallenges

Avoidance of helping to export US jobsWant to sell US materials to build factories but those factories may displace US employeesRapidly growing US export market, what are the tax implications for the future?

March 9, 2010Vietnamhochiminh.usconsulate.gov


IntelIntelDescription of the Organization’s Mission:

Become the Global Leading Semiconductor ManufacturerName and Title of Briefer:

Rick Howarth; Site GM Intel VNKey Findings:

ChallengesHiring experienced candidatesClose family relationships hinders relocation and retention of skilled employees from outside Ho Chi Min City (HCMC)Finding a qualified local supply baseSkilled construction workers difficult to find

Intel Supports Local EducationSupport 5 Local University with fundingGiven them tools to improve practical application6 week training of teachers in the U.S. (such as University of Arizona)Sending Students to US University for 3rd & 4th yrIntel understands that it will take ~10 years to build up the knowledge base

Intel guarantees transportation for employees living in Dist 1 and Dist 7.Vetting process for selecting new locations

Intel requires no more than 40% of revenue from one countryFormal Process

Stability of Government, Education System, Infrastructure, Man Power, IP Protection, Labor Laws, Environmental concerns, Supply BaseSaigon Hi-Tech Park

built water treatment plant for IntelIntel built their own Substations

Incentives~$1B USD / 5 yrs March 10, 2010

Vietnamwww.intel.com


MobiViDescription of the Organization’s Mission:

Providing a path for people that have no credit to purchase goods and services directly from a bank account to a product supplier

Name and Title of Briefer:Mr. Tan Trung Dung – CEO

Key Findings:Providing a portal directly from banks to cell phones / utilities / other venders to purchase goods and servicedEarly stage start-up; Launched first of 2010Working with small shops to be a rep, not the individual peopleWorking with the government to set up a credit division to allow people to get creditLong term goal to be a Visa or Master Card of VietnamLooking to partner with larger banks to get debit cards issued

March 11, 2010Vietnamwww.mobivi.vn/


VinaGameDescription of the Organization’s Mission:

Develops and Operates Online-games in Vietnam using its self-built network of Internet Cafes and Portals

Name and Title of Briefer:Mr. Bryan Pelz Founder

Key Findings:Lessons from an Entrepreneur

Learn how to driveGo FastSoutheast Asia doesn’t existBeware the Mekong Bagel Games are differentFirst-movers forever

Key Findings for VietnamHighest Internet penetration of developing world (80%)Market Need: Young and BoredDifficult to Scale up

no partners to outsource withHad to build everything

March 12, 2010 Vietnamwww.vinagame.com.vn


Dong An II Industrial ParkDescription of the Organization’s Mission:

To develop industrial parks with international standards and perfect supporting services, creating a most favored environment for domestic and overseas investors in industrial area.

Name and Title of Briefer:Mr. Bui Manh Lan – Chairman and CEOMr. Vu Trong Tai – General Director

Key Findings:Only 10% of workforce has been through skilled training programs

Created Dong An Polytechnic – providing skilled labor for industrial parkProvides full services including customs and government relations

Strong connections with both groups to avoid unnecessary delaysGuarantee 8hr customs turnaround compared to weeks for other companiesSupply chain – source components for your assemblies, skilled employees

Dong An II will be more selective than Dong An IWill refuse heavy polluters (dyes, lead, etc.)Target less labor intensive industries

March 11, 2010Vietnamwww.dongan-group.com.vn/kcndongan/kcndongan_list.php?category_id=3


Ministry of Science andTechnology

Description of the Organization’s Mission:Governmental agency that performs the function of state management of science and technology, covering: scientific and technological activities; development of scientific and technological potential; intellectual property; standardization, measurement and quality control; atomic energy, radiation and nuclear safety; and state management of public services.

Name and Title of Briefer:Mr. Do Van Loc – Director, Department of High Technology

Key Findings:Transition: planned economy to market economyStable GDP growth (7-8% in ten years), large market (86 million), entering middle income status (GDP per capita is approx. $1,000 USD)National R&D centers: VAST and VAAS19 key national laboratories: ICT, Bio, Material, etcTwo high-tech parks: Hoa Lac (north) and Saigon Hi-Tech Park (south)Funding S&T: Vietnam Science Fund (like NSF, $220M USD), National Innovation Fund, Ministries & Local government budgets, and business self-fundedChallenges: Human resource gap, Education and Institutional research, infrastructure, IP mgmt law & enforcement, FDI for researchS&T Strategy to 2020

Focus: Agriculture, Manuf., Services, IT, BioTech, Adv. Materials and Automatic DevicesLoan support subsidizing interest of first 85% of loan if on project priority list March 12, 2010

Vietnamwww.most.gov.vn


Dong An PolytechnicDescription of the Organization’s Mission:

A new vocational model school in supporting and supplying man power for Vietnam industry

Name and Title of Briefer:Mr. Lan – Owner of Dong An IP I and IIMr. Tai – General Manager

Key Findings:Private Industry school owned by the Dong An industrial park.

2 year associate degree in CNC, welding, electronics, IT and accounting. Plans for a 4 year and advanced degrees by 2020. Current 4 year program includes 2 years at another institutionPlan to go into ME, EE, CS

Focus on Learning by Doing, Working with industry needsResources: dormitory, $7M (USD) for lab equipment, Wireless, Library, Data Center. More funding here than in the public universitiesInternship/Apprenticeship can lead to higher paying work immediately after completionLow cost (relative) for tuition. $200 USD/yearStill under the auspices of the Ministry of Education200 Students currently enrolled

March 11, 2010Vietnamwww.dongan.edu.vn


Site Visits – Singapore

• U.S. Interests– American Chamber of Commerce– Office of Naval Research Global

• Corporate Visits– Boeing– GlaxoSmithKline– Goodrich– Tiger Brewery

• National Strategy for Business– Exploit Technologies

• National Strategy for Technology– SIMTech– Genomic Institute of Singapore – Data Storage Institute– Institute of High Performance

Computing– Institute of Microelectronics

• Sidebar Visits– Medtronic– Rosemount


American Chamber of CommerceDescription of the Organization’s Mission:

To promote the interests of Chamber members by providing advocacy, business information and networking

Name and Title of Briefer:Laura Deal – Executive DirectorAnne Marie Brooks – Government RelationsMelissa Petros – Industry and Issues Manager

Key Findings:Top issues of members

Low-cost labor availability – average income = ~$35k USDHousing and office lease costs – similar to New York City

Future growth initiatives in SingaporeTourism: $4.5B investment in resorts and casinosTrade agreements and partnerships for standardizationHigh-tech/innovation development

R&D spend was 2.61% of GDP in 2006 compared to 2.68% in USATransportation and logistics

United States taxing foreign income which is not conducive to US citizens working abroad. American Chamber of Commerce is a great resource for new businesses wanting to move to Singapore

March 1, 2010Singaporewww.amcham.org.sg


GlaxoSmithKline (GSK)Description of the Organization’s Mission:

Grow a diversified global business, deliver more products of value, simplify the operating model.

Name and Title of Briefer:Ms. Elizabeth Hernandez – Director, Government and Public Affairs, Asia Pacific

Key Findings:GSK Celebrates 50th Anniversary in Singapore

$1.5 billion investment, 6100 employees in Asia Pacific, 4th largest Pharmaceutical CompanyR&D team manages 109 clinical research studies. Research focused on HIV/AIDS, Malaria, TBOther areas include Vaccines, Antibiotics.

Key Healthcare challenges in SE Asia20,000 people each day are affected to HIV/AIDS, TB and Malaria2 million children die from vaccine preventable diseasesInfant and maternal mortality is highGoal Set by GSK to reduce deaths by 90% by 2015

Key Factors Contributing to the challengeDiversity and complexity of developing Asia – Culture, ethnic, linguistic diversity, marked income inequalities.Weak Health Infrastructure – SE Asia has the lowest density of hospital bedsAffordability to Patient – Most spending is Out Of Pocket (OOP)Per capita varies from $650 in Cambodia to $35,000 in AustraliaPharma Industry’s R&D based business model – High Risk Investment

GSK’s ApproachPricing to reflect Country’s health & Income distributionFostering R&D for diseasesInvestment in CommunitiesCollaboration with other industry giantsSearch for new models in health systems

March 2, 2010Singaporewww.gsk.com/worldwide/sg.htm


BoeingDescription of the Organization’s Mission:

To provide support to the ASEAN region (strategic location)Name and Title of Briefer:

Raymond Francis – CommunicationsRalph “Skip” Boyce – President Southeast Asia – Former Ambassador to Thailand

Key Findings:Singapore is the largest ASEAN customer than all of others combinedSingaporean stimulus saved Boeing-Asia during economic downturn

Money saved for a rainy dayNo Singaporean was going to lose their job

ASEAN is a diverse region. Challenges include transparency, corruption (bribes), and overlap of defense and commercial (WTO).787 Released this year (pending surprise).

850 orders on handPoint to Point will win versus A380 Hub to Hub.

Singapore Airlines and the MRO are key markets for BoeingBusiness: 45% Defense & 55% Commercial ; 3000 planes on backlog.Vietnam is adapting to Singaporean styles in the airplane market (1st Class & Business)

March 2, 2010Singaporewww.boeing.com


Data Storage InstituteDescription of the Organization’s Mission:

To establish Singapore as an Research & Development center of excellence in data storage technologies.

Name and Title of Briefer:Dr. Chang Kuan Teck

Key Findings:DSI was established in 1996 and currently operates with 5 research divisions :

Spintronics, Media and Interface Mechatronics and Recording Channel Optical Materials and Systems Network Storage Technology Integrative Science and Engineering

DSI’s goal is to stay in the forefront of data storage research with strong technology capability; and to provide technical expertise and trained talents to MNCs and local firms. DSI’s success is to attract 2x match of industry investment in R&D over a* investment DSI’s new focus is in data center related technologies: data management, power consumption reduction, etc.

March 3, 2010Singaporewww.dsi.a-star.edu.sg


International Institute of High Performance Computing

Description of the Organization’s Mission:IHPC promotes and spearheads scientific advances and technological innovations through computational modeling, simulation and visualization methodologies and tools.

Name and Title of Briefer:Dr. Michael Sullivan - Assistant Program Manager

Key Findings:PEOPLE

140 Researchers almost all PhDsCULTURE

Diverse Multinational Teams Diverse background of researchers – Chemists, PhysicistsVirtual Teams used for problem solving

ISSUESBig Gap in Hi-Tech in the regionIP Sharing still an issues with MNCs

Value Proposition to PartnersStrong Competency in fundamental sciencesDiverse multidisciplinary approach to problem solving

Collaboration ModelsResearch CollaborationLocal Enterprise CollaborationMNC CollaborationPublic Sector CollaborationA* Internal CollaborationInter Research Institute Collaboration

March 4, 2010Singaporewww.ihpc.a-star.edu.sg


Genome Institute of Singapore Description of the Organization’s Mission:

Aspire to use genomics to improve public health and prosperity through the use of technology, genetics and biology. Move towards a goal of individualized medicine.

Name and Title of Briefer:Lawrence Stanton, Ph.D.

Key Findings:Multidisciplinary organization – genomics, cell biology, pharmacology, human genetics, composition biologyGovernment recruits researchers from around the world using incentives

Aren’t required to teachAllotted significant amounts of money to conduct research

Collaborative mindset Collaborative projects with Astar e.g. genome sequencing at the super computing instituteKnow what others are doingEngaged in ASEAN for both business and science

Two small companies currently being spun out of GISMoney for research is more widely available through government fundingLess government regulations; embryonic stem cell research is prevalent Labs are set-up very similar to labs in the U.S. and particularly the U of MN

The labs are set and available for researchers; they just need to come in and do the researchChallenges

What distinguishes them from what Universities can doHow can they do something different to distinguish and value their findingsTheir research is not commercially minded; failure is frowned upon; bridging the gap between R&D and industry is difficultToo academicInformation management is a bottleneck; need expertise to perform image and sequence analysis

March 5, 2010Singaporewww.gis.a-star.edu.sg/internet/site/


Institute of Institute of MicroElectronicsMicroElectronicsDescription of the Organization’s Mission:

To add value to Singapore's semiconductor industry by:Developing strategic competencies, innovative technologies and intellectual property Enabling enterprises to be technologically competitive Cultivating a technology talent pool to inject new knowledge tothe industry

Name and Title of Briefer:Dr. Dim-Lee Kwong – Executive DirectorDr. Choi Pheng Soo – Research Manager

Key Findings:National semiconductor research for Singapore

145 Researchers – 65 PhD studentsFunded through industry and A*STAR and has close ties with EDBUtilize International partners/ work with Universities / Attract MNCs

View themselves as a solution provider – Moving up marketMore than Moore Initiative – Platformcentric system integrationIC Design, Prototype foundry capability, Assembly and TestCreate new markets for existing semiconductor infrastructure

Technology Areas12” Wafer-fab facility dedicated to researchNanowirePhotonics – Optical interconnectsSilicon based cardiac biomarker detection, Point of Care DiagnosticsMEMS based medical sensors, low power consumption, wireless interface

Measure results through focus on Industry $s and number of publications March 5, 2010Singaporewww.ime.a-star.edu.sg/index.html


Singapore Institute of Manufacturing Technology

Description of the Organization’s Mission:Economic impacts through ‘Application’ of Research & Development. Economic considerations are a strong input in determining the focus areas for R&D. SIMTechcurrently has a 50/50 split between developing competencies (human capital) and meeting industry needs. Pragmatic research based on economic returns.

Name and Title of Briefer:Shwu Lan NgohLoke Chong Lee

Key Findings:Goal to maintain > 20% of GDP from ManufacturingOriginal focus was on meeting the human capital needs of MNCs. Dependent on MNCs to transfer knowledge and expertise as needed.SIMTech is the only A*Star unit located at NTU not at Biopolis or Fusionopolis1991 start of money for R&D2nd biggest institute in A*Star370 people

120 Ph.DsUnderlying theme of manufacturingFocused on 5 – 10 year horizonInter-disciplinary approachGreen manufacturing and sustainabilityCurrent focus is on growing SME’s into large local companies with revenue greater than S $100 million.No DFM only striving for efficiency with green manufacturing focus.Center of Innovation March 5, 2010

Singaporewww.simtech.a-star.edu.sg


Office Naval Research GlobalDescription of the Organization’s Mission:

ONRG Singapore seeks opportunities to promote science and technology collaboration of mutual benefit between the United States and researchers all around Asia and SE Asia.

Name and Title of Briefer:Jerome Dunn, Assoc. Director

Key Findings:Mr. Dunn coordinates basic research for the benefit of the US governmentOne object of the ONR is to prevent “technology surprise”The ONR collaborates to fund research in Asia including A-STAR SingaporeMr. Dunn outlined projects including rotating detonation engines, graphene, new forms of body armor, free electron lasers, and stem cell tissue matricesONR matches research funds research on the order of $30-200k with the intent of the researcher to openly publish the results

March 8, 2010Singaporewww.onr.navy.mil/en/Science-Technology/ONR-Global/


GoodrichDescription of the Organization’s Mission:

Goodrich Corporation, a Fortune 500 company, is a leading global supplier of systems and services to the aerospace and defense industry.

Name and Title of Briefer:Andrew Yuan, Sales Director, Goodrich Aerostructures, Asia Service CenterWee Beng Koh, Regional Director – Business Development, Goodrich Sensors & Integrated Systems

Key Findings:Location is strategic --> Singapore is central to Asia operationsGoodrich is the largest MRO (maintenance, repair, overhaul) facility in SingaporeMNC with seamless integration across organizationFormed R&D Center in collaboration with US Aerostructures R&D resulting in 75% tax reductionOver 710 employees in a Multi – Cultural Campus EnvironmentOpportunities

Growing Aerospace market in AsiaSingapore investing in Aerospace

ChallengesSkilled Labor (aerospace)Increasing labor costsDoing business in ASEAN faces unique challenges

Corruption in some areasMany different cultures March 3, 2010

Singaporewww.goodrich.com

7-Story, 30-year lease, 550,000 sq ft


Tiger BreweryDescription of the Organization’s Mission:

To be the leading brewer in the Asia-Pacific RegionKey Findings:

Established in 1931Beer consumption growth in Asia Pacific region is at least twice the consumption growth rates of the European and American beer markets.Produces Tiger, Heineken, Barons, Anchor, Guinness, ABC, and KilkennyProduction:

130 million liters/year (50% Singapore, 50% Overseas)40000 cans/hour18000 large bottles/hour , 24000 small bottles/hour300 kegs/hour

Excellent Social Networking EventGreat experience for learning from real SingaporeansStella, Lilly, Judy, Janelle, Mike

Excellent 2010 MOT team building to build lasting unforgettable relationships

March 4, 2010Singaporewww.tigerbeer.com


Exploit TechnologiesDescription of the Organization’s Mission:

To support A*STAR in transforming the economy through commercializing R&D (marketing and commercialization)

Name and Title of Briefer:Ms. Wei Peng Seeto, VP for Corporate Marketing and Communication

Key Findings:Singapore’s national technology transfer office (TTO) for Agency for Technology, Science, and Research (A*STAR)Moving outcomes of 2000 researchers into the marketplaceWorks to connect researchers, industry, government, and investorsLicensing agreements (Royalties), Start-up Companies (Equity), Business Formation Services (Incubation, Consulting)Formation of Investor(Angel Investment Management)/ Entrepreneurial CommunitiesGap Fund CapabilitiesMajor Takeaway

On paper the system is ideally resourced in terms of the US comparisonIn reality, innovation, especially the creation of new industry through start-ups takes time. It’s a capability that cannot be bought with resourcesSingapore research functions seem to be set up as a natural extension to the MNCs R&D aspirations and near term product development. This may slant research important to short-term and applied, vs. open and breakthrough. Also, much of the commercialization value to A*STAR may be lost in early agreements.

Outcomes/Implications250 Disclosures a year (approximately same as UMN alone)Singapore business environment is set up ideally for licensing, and short term industrial innovation.Typically adopt a non-exclusive licensing model (1/3rd revenue sharing)

March 4, 2010Singaporewww.exploit-tech.com


Site Visits – Vietnam

• U.S. Interests– Office of Naval Research Global

• Corporate Visits– QSIC– Norcal– Fab-9– Sam Son– Vietnam Semiconductor

Manufacturing Corp.– Green Power Technology

• National Strategy for Technology– Ho Chi Minh City University of

Technology– Laboratory of Nanotechnology

• Sidebar Visits– Toro


Quality Systems Integrated Corporation

Description of the Organization’s Mission:We are committed to total customer satisfaction while continuing to develop unique solutions for the needs of the electronics industry.

Name and Title of Briefer:Mr. Kiem Le, CEOKelly McNulty, VP Global Sales and Marketing

Key Findings:Global High Tech Electronics Manufacturing Service

Facilities in US (San Diego) and VietnamPrimary driver to move to Vietnam – Cost

Facility under constructionOther reasons to move to Vietnam

Easy MigrationGood Business EnvironmentLocal Program ManagementFlexibility and ResponsivenessStrong Global Customer BaseStrong Supplier RelationDistribution March 10, 2010

Vietnamwww.qsic.com


SamsonDescription of the Organization’s Mission:

Develops and Operates Online-games in Vietnam using its self-built network of Internet Cafes and Portals

Name and Title of Briefer:Nguyen Duc Anh Quan, Director of Engineering, Samson

Key Findings:Products Developed

Mailbox replacementEthernet/Infrared bridgeMobile2Mobile file sharingiChat2MeetGymDJHave not yet productized anything—eagerly looking for partnerships.

Key Findings for VietnamStartup in U.S., located engineering in VietnamVietnam has speed of adoption, execution, and cost of prototypingVietnam lacks:

Experienced engineersRaw engineering talentLow teamworkCommunication Skills

March 12, 2010 Vietnamsamsonvn.net


Office of Naval Research GlobalDescription of the Organization’s Mission:

The Office of Naval Research (ONR) coordinates, executes, and promotes the science and technology programs of the United States Navy and Marine Corps.

Name and Title of Briefer:Shawn A. Thorne, Ph.D. – Associate Director, Functional Materials

Key Findings:For every $1 invested in Vietnam or China it would take $4 in the US to accomplish the sameA big part of their program is sponsoring conferences and network buildingWhy invest in Vietnam? Low inertia of legacy technology, inexpensive human resources, desire for leap technology, young population, China could become the next bio/nano hub (need a contingency)The goal is to use software to shorten the development cycle and cost through modelingThe venture capitalist goes where you can mine brains, ideas are globalChallenges

Lack of higher degree students, entrepreneurial spirit, Limited connectivity to world, cannot innovate beyond cutting edge if you don’t know what the edge is currentlyCultural and political sensitivities

March 12, 2010Vietnamwww.onr.navy.mil/Science-Technology/ONR-Global.aspx


HealthCare IndustryOpportunities for Minnesota-Singapore Collaboration

Dave Johnson, Jeff Stan, Jeevan Prasannakumar, Jon Gamble, Monica Gupta

IMTP Singapore VisitMarch 01 – 08 2010


Healthcare Organizations Visited Singapore

o Bio-technologyo Medical Deviceso Healthcare ITo Pharmaceuticalso Medical Electronicso Research Universities


Agenda• Healthcare at a Glance• Healthcare System• Healthcare Initiative• Healthcare Trends• SWOT• US Presence in Singapore• Converging Interests• Recommendations• Minnesota-Singapore Collaboration


Healthcare at a Glance in Singapore

• 253 clinical trial certificates approved in 2007• 4-6 weeks for clinical trial certificate review/approval;

applications are made in parallel to regulatory body and institutional review board.

• Therapeutic areas include oncology, clinical pharmacology, cardiology, neurology, gastroenterology, hepatology, urology, infectious disease, immunology and endocrinology

• 181 product licenses issued in 2008 (including 19 new drugs)

• Multi-ethnic population:77% Chinese, 14% Malay and 8% Indian

Source: Biomedical Science brochure 2009 from EDB Singapore


Singapore Healthcare System



Singapore’s Integrated Initiative


Singapore government is committed to develop the biomedical sciencessector, and adopts an integrated approach across key agencies


HealthCare Trends in Singapore• WHO has ranked Singapore’s healthcare system

as the best in Asia and sixth best in the world.• Central government allocates 1.3% of GDP to

health.• Internationally accredited medical facilities.• Medical tourist destination.• Lower birth rate, aging population.• Medisave, Medishield and Medifund shared

responsibility for financing.• Rapidly advancing medical technology.• Rising public expectations for health care.• Medisave, compulsory medical savings plan at $30

billion (2005)• Gradual shift from government financing to private

sector.• Increasing patient satisfaction 85%• Government investing billions to attract foreign

pharmaceutical and biotechnology companies to Singapore.


Singapore Strengths & Weaknesses

• Strengths– Regulatory environment – pro-business– Technology Fast Follower – quickly adopt best practices– Modern Infrastructure– Government policies

• IP Protection• Medisave, Medishield and Medifund (3M system)• Government funding for medical technology

• Weaknesses– 3M formula not designed to account for long-term elderly care– Focus on how to pay does not promote wise choices– No incentive for health care providers to contain costs– Lack of culture for rigorous and transparent evaluation


Singapore Opportunities & Threats• Opportunities

– Health care sector economic growth– Eldercare and Elderfund to address aging population– Singapore positioned to become premier medical hub in the region

(Singapore Medicine initiative)– Singapore Medicine is a multi-agency effort led by the Singapore

Economic Development Board (EDB), International Enterprise (IE) Singapore and Singapore Tourism Board (STB). Singapore Medicinewill focus on:

• developing new capabilities in the healthcare sector • helping Singapore healthcare businesses expand globally • promoting Singapore’s integrated healthcare services overseas • attracting leading medical and research institutions to set up in

Singapore• Threats

– Cost containment of healthcare – new medicines create mounting cost pressures– As economy matures GDP growth will slow– Aging population 14% in 2010 increasing to 25% by 2030– Emerging competition from other regional economies – India, China– Growing concern that healthcare industry is plagued with unnecessary and inappropriate care


US Presence in Singapore



Converging Interests

Mass Customization

Health Care Costs

Personalized Medicine

Proactive

Reactive

Cheap Expensive

Individualized CarePersonalized Point of

Care Diagnostics

Singapore Healthcare System

US Healthcare System


RecommendationRecommendationRecommendation WhoWho WhatWhat HowHowExplore collaboration in R&D Universities, Government,

Private organizationsStrategic technology development

Government grants and private funding

Accelerate drug discovery. Vaccines and drugs to cure tropical diseases

Pharmaceutical companies in collaboration in research facilities /Universities

Joint Research with MOU

Exchange programs, funding and technology transfer

Research projects for Stem cell research to find cure for heart diseases

Universities, Government, Private institutes with Research organizations

Joint Research and knowledge exchange

Government grants and funding from private organizations

Explore manufacturing opportunities

Medical device manufacturers, Surgery tools, etc

Set-up facilities and distribution centers to market to Asia-Pacific

Invest and think global

Explore marketing opportunities

Medical device manufacturers

Sell latest products to exploit prevalent medical tourism

Recognize Singapore as the regional hub for medical tourism

Invest in healthcare Information management

Minnesota companies and local hospitals and clinics

Utilize the power of software to manage data

Develop a communication system for sharing information that would help diagnosis

Collaborate to Commercialize Technology

Minnesota and Singapore research institutes

Bring to market innovative therapies

Home grow to promote entrepreneurship


Minnesota-Singapore CollaborationCompanyCompany Leading Leading OpportunityOpportunity

Medical device companies such as Medtronic, St Jude, and Boston Scientific

Medical devices treating several disease conditions

•Create clinical study partnerships•Investigate advanced biotechnology options•Investigate Point of Care Diagnostics aimed at early detection of disease states

LSS Data Systems Healthcare information technologies and Electronic Health Records (EHR)

•Partnership with hospitals for medical record retention – point of entry into Asia

Vital Images Imaging of heart and other organs Enter the promising healthcare market

SurModics Inc Drug delivery, Surface modification coating technologies and components for clinical markets

Partnerships with other companies selling in Singapore

Mayo Clinic Comprehensive medical diagnosis and treatment

•Clinical study partnership with key institutes for disease treatment•Collaborate with biomedical research universities to aid public health•Collaborate with local companies in finding anti-cancer drugs


Opportunities for theMedical Device Industry

Shelton PeeplesSamuel WillJeremy ToddSam YeMichael FletcherJesse Haakenson


Agenda

• Opportunity Statement• Conclusion• Industry Analysis

– Overview– Detail– SWOT

• Recommendations– Short‐ and Long‐term Moves


Opportunity Statement

• What opportunities are available to us in both Vietnam and Singapore?


Conclusion

• Significant marketing and innovation opportunities exist in Singapore and Vietnam

• Singapore holds the most potential to become a viable disruptor in medical technology– To exploit that threat we need to move in early– Vietnam could benefit from such a disruption


Strong and Reliable Supplier

Base

Strong and Reliable Supplier

Base

Access to Talent and Ideas

Access to Talent and Ideas

Competitive Tax EnvironmentCompetitive Tax Environment

Connectivity and Market Access Connectivity and Market Access

Strong Demand for Medtech

Strong Demand for Medtech


Industry Analysis & Recommendations


Industry Analysis ‐ Overview

2008 Figures Minnesota Singapore Vietnam

GDP (US$ Billions) 259 181.9 90.7

Population (millions) 5.3 4.84 86.21

R&D (% of GDP) 7,800 (3%) 5,500 55

GNI per capita (US$) $42,772 $34,760 $2,700

Source: http://web.worldbank.org


Industry Analysis ‐ SWOT

Minnesota Singapore Vietnam

Strengths •Talent Base•Standard of living•Infrastructure•University access•Strong supplier base•Access to talent and ideas•Access to start ups

• Strong supplier base•Access to talent and ideas•Market Access •Favorable Tax Environment•Applied research base•Infrastructure•Low corruption•Education•IP Protection

•Favorable Tax Environment•Low Cost Labor•Technology Park Access•Large consumer market

Weakness •High cost labor•High taxes

•R&D capability unproven•Expensive real estate•High cost

•Low talent availability•Corruption•Education•Weak IP protection


Industry Analysis ‐ SWOT

Singapore Vietnam

Opportunities •Regional Trade Benefit•R&D Tax Incentive•Efficient Clinical Trial

•Regional Trade Benefit•Large Emerging Consumer Market•Low cost labor – mfg

Threats •Could become competitor•Potential disruptive technology

•Vietnam•Counterfeit•International Competition – First Mover


Recommendations

What Who How Why WhenSetup Regional HQ in SG

STJ, AMS, GB, Coloplast

Contact EDB Ask MDT Immediately

Expand sales and marketing in Vietnam

MN medical industry

Contact US Chambers of Commerce

Close to market Immediately

Setup mfg and R&D in Singapore

MN medical industry

Collaborate with EDB and research base

Local Talent, Tax Break, SE Asia Proximity

1 to 3 years

Start disruptive product line in Vietnam—low cost and good enough

MN medical industry

Set up local business division, with PD, mfg, and sales

GE modelConsumer base is large, but can afford only low price tag

3 to 5 years


Entrepreneurship in Entrepreneurship in Singapore and MinnesotaSingapore and Minnesota

Technological Leadership Institute

Robert Krukoski – Catherine Slattery – Andy BronczykJoshua Sheppard – Brad Weber – Jon Grzeskowiak


Startup OpportunityStartup Opportunity


Cost of Living & Education


Office SpaceOffice Space


Government Taxes & IncentivesGovernment Taxes & Incentives


Raw Materials CostRaw Materials Cost


Experienced Educated Labor CostExperienced Educated Labor Cost


Business Startup SummaryBusiness Startup Summary

• Step 1 – Be in the right business– R&D – systematic, investigative, experimental

NANONANO







NANONANO




• Step 2 – Get your business running in US first

• Step 3 – Contact EDB or SPRING

• Step 4 – Get subsidy or tax agreements



Copyright © 2010 No part of this presentation may be reproduced in any form without prior authorization.http://www.edb.gov.sg/etc/medialib/downloads/investors.Par.17038.File.dat/Other%20research%20and%20development%20schemes.pdf



Renewable Energy Opportunities in Singapore and Vietnam

International Management of Technology

Craig Bibeau, Todd Gardner, Jacob Johnson, Kaustubh Patil

Copyright © 2010 All Rights Reserved

Agenda

• Regional Overview• Renewable Energy Demand• What Do They (SE Asia) Have?• What Do We (Minnesota) Have?• Partnership Opportunities

Regional OverviewSingapore• Demographics

– Population ~5 Million– Median age 39– GDP $163 Billion– 100% Urban– $50,300 per capita GDP

• Well‐Managed Infrastructure• No Natural Resources• Electricity Use: 38 B kWh

– Per Capita: 7600 kWh

Vietnam• Demographics

– Population ~88.5 Million– Median age 27.4– GDP $91.76 Billion– 28% Urban– $2900 per capita GDP

• Fragile Electrical Grid• Oil & Gas Resources• Electricity Use: 74.5 B kWh

– Per Capita: 846 kWh

Renewable Energy Demand• Services

• Efficiency

• Security• External Threats• Public Safety

• Stability• Reliable and Available• Increased capacity

• Self‐Sufficiency• Energy Independence

Renewable Energy DemandSingapore Vietnam

Services High DemandEnergy demand increasing faster than capacity. Efficiency products and services, Efficient transmission, and Carbon trading

Low Demand

Security Low DemandSmall gains in products to support High‐tech industry

Low DemandHigh need but low priority.

Stability Medium DemandIncreased capacity for high tech and manufacturing industries

Medium‐High DemandStorage Transmission, Infrastructure, New Generation, Stable Grid

Self‐Sufficiency HighServices and products to reduce dependency on neighbors. Storage!

HighLarge and Small generation; small off‐grid for rural. Renewables provide independence and flexibility

What Do They Have? | Singapore

• Research and Development Capability– Resources and People– Strong IP Protection– CleanTech Park Facilities– Government Support

• Technology Commercialization– SPRING– Exploit Technologies

What Do They Have? | Singapore

What Do They Have? | Vietnam

• Manufacturing Capability– Resources and People– Inexpensive Labor– Turnkey Providers

• Tax incentives– 5‐year tax holiday, 10‐year tax break– Exemptions from import duties– Export Duty‐Free zones

What Do We Have? | Minnesota

• Established Industry– Many Large Successful Companies– Ongoing Drive for Growth– Experienced Product Engineers

• Entrepreneurship– U.S. Spirit of Creativity– Strong Venture‐Capital

Partnership OpportuntiesMinnesota Vietnam Singapore

Research and Development

• U of M Faculty and Centers• Corporate Sponsorship• Corporate Commercialization

• A*Star Funded and Directed Research (Storage, Airflow, Photovoltaic)

Skilled Manufacturing

• Corporate Offshoring • Low‐Cost Industrial Park • Turn‐Key Solutions

• A*Star Supported Plat Design

Product Development

• Corporate Commercialization and Licensing of Technology• Provide Product Commercialize Experience

• A*Star Technology Breakthroughs

Education •University of Minnesota and MnSCU •Polytechnic education sabbaticals to teach repair


Vietnam:Two Examples of “Low Tech”

Disruptive Business Opportunities

Harpreet Kathuria, John Marsolek, Mark McNitt, Anh-Thinh Nguyen, Viswanathan Sivaramakrishnan


Overview

• With 30% year after year GDP growth, Vietnam is moving up the economic value chain and is emerging as a significant market opportunity

• Vietnamese-Americans have unique opportunities to engage in business within Vietnam

• Insights into Vietnam’s unique cultural environment, combined with innovative thinking, opens unique market opportunities

• Numerous resources are available to help innovators reach business goals in Vietnam


Economic Development Model

Vietnam

Singapore


Sea Turtles (Viet Kieu)

• 40% of Vietnamese students coming back home USA Overseas Vietnamese Student Association

– US Economy is declining – Vietnam is booming– Better chances of finding jobs at home

• Opportunities to work on new technologies– NanoTech, µChips, Video Game design – Ho Chi Minh Hi-

Tech Park– Many MNCs have plants in Vietnam

• Feeling to contribute to homeland• Govt. welcoming with open arms• Govt. making business opportunities very attractive – tax

incentives, low cost of land, low cost of construction etc.


Disruptive Business Idea #1

Vietnamese Pho• Served with bean sprouts, basil, peppers, and lime.Many Vietnamese dishes are served with lime but often dirty your hands or limes go bad if not used.

We would disrupt the Vietnamese market with

these stylish lime bottles and tend to preserve longer than

real limes.


Disruptive Business Idea #2

Vietnamese Moped• Most Vietnamese travel via the moped or motorbike.• There are 4872000 mopeds• It is expensive to own an automobile.• It is impractical to travel efficiently by automobile.

6 months of rainy season, traveling by moped becomes very wet and inconvenient.

We would disrupt the market by designing and marketing a rain guard that would cover the rider without having to wear a raincoat.


Business ModelEarly adopters: Pho restaurants ~ 2600 (30 tables) in 3 largest metropolitan cities with a total population 14 million30% of population ~ 4.2 million eat dishes that use lime each day

Consumption: 78,000 bottles a dayPotential Annual Market: $20 million

Manufacturer equipment in Minnesota then export equipment to Vietnam for product manufacturing.-Protect IP for equipment-Leverage low-cost labor-Leverage Vietnam Tax incentives


U.S. Resources in Vietnam

• The US Consulate is an excellent resource for American companies in gaining access to Vietnamese markets

• The US Department of Commerce, operating within the US Consulate, offers street-level, actionable market information• They provide assistance in vouching for the US

companies and helping to open opportunities with distributors, etc

• They offer process checks and political pressure to ensure fair play


Business ModelEarly adopters: Pho restaurants ~ 2600 (30 tables) in 3 largest metropolitan citiesTotal Population: 14 million30% of population ~ 4.2 million eat dishes that use lime each day

VAR – Value-Added Reseller StrategyConcorde Foods – make lime juice in a lime-shaped bottleWe would purchase at wholesale price from Concorde at $.80. Estimated sale price is $1.50/ea.

Consumption: 78,000 bottles a dayCost: $62,400 / day; Price: $117,000 / dayProfit: $54,600 / day, Annually: $19,656,000


Vietnam: Opportunities to Learn From Singapore

27 Feb – 13 Mar2010Singapore / Vietnam

Mike BellOmeeda RahimMatt SandnasCale Schwalm


Singapore Growth: Where Vietnam Wants to Be

Vietnam


Areas of Opportunity for Vietnam

• Government Strategic Focus• Education• Infrastructure Development• Intellectual Property• Improve Image


Government Strategic Focus

• Create Strategy Define Focus• Incentivize Specific Industries• Focus Technology to Take Advantage of Natural Resources– Mineral– Petroleum– Hydropower

• Increase Tourism to Generate Revenue and Interest in Vietnam


Education

• Government Funded Education through 12thGrade

• Increase Wages for University Professors and Researchers

• Make English Mandatory• Increase Grant Funding for Strategic Industries


Infrastructure Development• Plan Roads for Transition from 2 Wheel to 4 Wheel• Improve Public Transportation System• Improve Water Quality• Improve and Unify Public Utilities• Standardize Procedures for Ports


Intellectual Property

• Vietnam has a limited Intellectual Property Infrastructure

• United States IP Law is taught in Schools• IP Framework Needed to attract MNCs• Differentiate from China!


Improve Image

• Improve Transparency between Government and Private Sector

• Eliminate Corruption• Improve Human Rights• Enforce Business Laws• Foster Ethical Business Practices


Questions

Thank you


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