Innovative Business Models in the Blue Economy: Hopes and Challenges
Nguyen Dang Tuan Minh
After five years of working alongside numerous startups in the blue economy, we aim to share our perspectives on innovative business models in this sector, hoping to inspire strategic shifts and policy priorities.
Bright Spots and Gaps
Vietnam, with over 3,000 km of coastline, holds a strategically significant position in the Asia-Pacific blue economy. Rich marine resources, ranging from biodiversity, fisheries, and oil to wind and wave energy, have positioned the blue economy as a driver for sustainable national development. The ocean is not just a boundary but a bridge. While Vietnam has outlined clear blue economy development strategies, innovation and startup activities in this area remain limited.
The blue economy broadly encompasses the following key sectors:
- High-tech fisheries and aquaculture
- Renewable energy from the ocean
- Smart maritime and shipping technologies
- Smart coastal tourism
- Interdisciplinary applications of advanced technologies in transportation, aquaculture, energy, and environmental protection.
In Vietnam, high-tech fisheries and aquaculture stand out as the most promising sector, especially with the involvement of tech startups. This is understandable given Vietnam's position as a top global exporter of seafood. Various initiatives focus on developing and testing IoT and AI-driven aquaculture models to monitor water quality, manage environments, and optimize yields. Offshore aquaculture models are also being implemented to withstand harsh conditions, easing the burden on overexploited coastal areas. However, these solutions remain small-scale and are often confined to pilot projects, lacking long-term investment and strategies for international market expansion. Smart maritime technology and renewable ocean energy solutions are also emerging but are fragmented, failing to create the comprehensive breakthroughs needed for Vietnam’s blue economy to compete regionally.
Despite tourism being a flagship industry in Vietnam’s blue economy, smart coastal tourism solutions are notably absent.
"A major issue is the lack of young talent passionate about the ocean and blue economy-related technologies. This talent gap presents significant challenges for new businesses developing ocean-focused models."
— Tran Thai Son, Founder of SDIVICO
Promising Startups
Below are some notable initiatives demonstrating innovative solutions and unique business models. These startups can serve as examples for shaping policies to highlight promising directions for Vietnam’s blue economy.
Rynan Technologies: Pioneering in Aquaculture Technology
Based in Tra Vinh, Rynan Technologies has elevated the application of technology in aquaculture to a new level. Solutions like RYNAN Smart Aquaculture and the TOMGOXY system, which integrate IoT and AI, improve water quality, disease management, and production efficiency. Their collaboration with international organizations to restore mangroves and develop sustainable shrimp farming showcases a broad vision that blends technology with environmental conservation.
Tép Bạc: A Comprehensive Ecosystem for the Shrimp Industry
Tép Bạc, a Ho Chi Minh City-based startup, mirrors Rynan’s trajectory by building a holistic ecosystem for shrimp farming. Their IoT devices, farm management platforms, and B2B e-commerce marketplace reduce risks and costs for shrimp farmers. Tép Bạc's vision of expanding into international markets like India and Indonesia reflects their scalable model.
Wesolife: Green Solutions for Water Treatment
Hailing from Ca Mau, Wesolife has focused on the niche yet critical market of aquaculture water treatment. Using electrochemical technology to produce chlorine from saltwater, Wesolife provides eco-friendly alternatives to chemicals while reducing CO2 emissions. Their flexible business model prioritizes intensive shrimp farming needs before expanding to other markets.
NamiBio: From Agriculture to Aquaculture
Initially specializing in microbiological products for agriculture, aquaculture, and environmental applications, NamiBio has extended its business to technology transfer and equipment supply. Their sustainable approach addresses chemical overuse, enhancing production value and serving diverse clientele from farmers to research institutions.
SDIVICO: Product Diversification for Fishermen
Based in Vung Tau, SDIVICO creates an ecosystem of products for fishermen, including innovative solutions like nano graphene oil additives for engines. Their products improve operational efficiency, reduce carbon emissions, and expand applicability to broader transportation sectors.
Bien Viet System: Digitizing Maritime Management
Leveraging 4.0 technologies, AI, and IoT, Bien Viet System enhances maritime management through an integrated database, management software for authorities, and mobile applications for fishermen. Their digital transformation efforts have engaged nearly 30,000 users across 28 coastal provinces, demonstrating the potential of localized, scientist-driven solutions.
Challenges for Blue Economy Business Models
The lack of skilled professionals is a critical barrier to implementing new technologies and business models. Current training programs in universities and vocational schools often fail to meet market demands, resulting in a gap between theory and practical application. Businesses face challenges in finding personnel who understand both technology and market dynamics, crucial for commercializing products.
"Few young people are passionate about the ocean or developing blue economy technologies. This talent shortage creates significant challenges for new businesses."
— Tran Thai Son, Founder of SDIVICO
Additionally, financial constraints limit startups from scaling their research, development, and commercialization efforts. While countries like Singapore and Japan boast robust investment funds and financial mechanisms supporting innovation, Vietnam is still in its infancy. More venture capital with a focus on environmental impact is needed to accompany startups in navigating risks and exploring international markets.
Moving Forward
Vietnam’s blue economy stands at a crossroads where technology and ecosystem-driven business models can act as key accelerators. However, a lack of connectivity among stakeholders—startups, research institutions, and policymakers—hinders technology transfer and reduces competitiveness.
To overcome these challenges, Vietnam needs to build a cohesive innovation ecosystem for the blue economy, tightly integrated with the national startup and innovation framework. Training programs must not only address current demands but also anticipate future trends, particularly in high-tech areas of the blue economy.
Financial mechanisms should be improved to provide the best conditions for innovative startups. Incentivizing private investors and specialized funds for the blue economy is crucial. These funds can support research, development, and commercialization projects, helping startups overcome initial challenges and expand internationally.
The development of blue economy innovation ecosystems reflects the natural evolution of startups. Their focus on specific target groups, followed by gradual integration of solutions around real-world needs, is reshaping the approach to the blue economy. Observing and fostering this trend is crucial for scaling these models beyond potential into actionable, sustainable impact.
Published in Tia Sang Issue No. 22/2024