It seems inevitabe.
FaceViet, a Vietnamese Facebook clone, was reported to be filing for bankrupcy.
VON (Vietnam Online Network) is reportedly being sold.
Rumor has it that Cyvee, the first social network for professionals, is laying off 75% of its workforce.
And even Vinagame.
It is unfair, though, to pin the blame for the misfortune of these start-ups 2.0 on the recession.
Take a closer look.
Do you ever believe that a blatant clone like FaceViet could ever achieve a fraction of the success that Facebook has?
And with Tìm Nhanh, a search portal that is powered by Google, along with a slew of other products on their homepage, VON in effect doesn’t know what they are doing. They lost their way. Yume.vn was destined to fail, as I observed during the launch event. It is largely a lack of clear visions that led VON to where it stands today.
About Cyvee. Didn’t I write the “enquiry to the fall of Cyvee“ last year? And it’s also worth noting that Cyvee CEO used to approach Vietnamworks for a deal worth of US$1mil and it was fortunate for Vietnamworks that they didn’t accept the offer at that time.
Early 2009 appears to be a good time for these start-ups to announce major changes. Because it blurs other things, like poor execution, management, and vision.
Certainly it’s not joy to talk about who’s gonna lose their job in the next announcements. Many of you here have friends, or even yourselves, who are within the vicious circle.
Duc Ban said it would be Vietnamworks. Why? Vietnamworks is currently the leading online job service for professionals in Vietnam. Regarding the effect of the recession, fewer and fewer employers are willing to take in anymore workers while they are the main source of income for Vietnamworks. On the other hand, more people losing their jobs means they will become frequent visitors to the site. Less income and more expenses to maintain the website.
But there’s another side of the story. In the last years Vietnamworks has made poor hires which led to the departure of a large number of its talented workforce. It’s odd for an HR company has to face HR issues.
As Simon put it:”they are dead”.
If Vietnamworks restructures itself, it’s likely that Caravat will follow suit. A young start-up that hopefully makes money out of its high-level executive members via a B2B model sees its capital drying up. Perhaps it explained why they were in such a hurry to launch the site premature.
We’ve seen companies survive the dot com bubbles and the financial crisis in 1999, other start-ups are no exception. I guess it’s a combination of internal and external factors. It’s like Asian governments are putting the blame on the credit squeeze in the US and Europe that dealt a hefty blow to their economies but in fact it is their export-led policies that make matters worse. Someone should be held accountable.
There’s is a new social media celebrity on the rise. You should check Chip’s entry out to see what I mean.