Technology

Startup investment in Vietnam is among the most exciting in Southeast Asia


According to the Report released recently by the National Innovation Center (NIC, Ministry of Planning and Investment) and the Venture Capital Fund Do Ventures, Vietnam is considered as one of the venture capital markets. the most promising in the ASEAN region.

Specifically, Vietnam currently leads Southeast Asia in the growth rate of the number of venture capital transactions. Compared to 2020, the number of venture capital transactions in Vietnam in 2021 has increased by 57%.

The growth rate of investment deals in Vietnamese startups is higher than that of Singapore (53%), Philippines (42%), Indonesia (27%), Thailand (9%) and Malaysia (1%).

In terms of investment capital, Vietnam is currently ranked 3rd in ASEAN in terms of capital growth rate for start-up investment.

The degree of change in capital source (left) and number of deals (right) invested in startups.

Compared to 2020, the amount of money that venture capital investors put into Vietnamese startups has increased by 220%. This figure is only behind Singapore (379 percent) and the Philippines (559 percent), while far behind Malaysia (119%), Indonesia (22%) and Thailand (1%).

According to the assessment of NIC and Do Ventures, Southeast Asia’s venture ecosystem has witnessed a comprehensive growth in recent years. The reason is that Southeast Asia has now become the “gold mine” of global venture capital.

Notably, if we only consider the group of 6 leading economies in ASEAN including Indonesia, Singapore, Malaysia, Thailand, the Philippines and Vietnam, our country currently accounts for about 13% of venture capital invested in the region in the year. via.

Vietnam also accounts for 19% of the total amount of capital pouring transactions into startups in the top 6 ASEAN economies in 2021.

In both of the above aspects, Vietnam is ranked 3rd, after Indonesia and Singapore – 2 leading economies in the region.

The share of capital (above) and the number of investment deals (below) between Vietnam (in green) and the 5 countries in the top 6 strongest economies in Southeast Asia.

The fields that investors are most interested in when looking to Vietnamese startups are games, entertainment, payments, retail and education. Prominent investment trends in the near term will include financial technology and web 3.0 with the growing popularity of cryptocurrencies as well as Blockchain technology.

According to the Vietnam Innovation and Technology Investment Report, the proportion of investment in the financial technology (Fintech) sector of Vietnam is currently ranked 3rd in Southeast Asia, after the Philippines and Thailand. In the eyes of investors, the popularity of smartphones in Vietnam is creating opportunities for startups for digital payments and online transactions..

Fintech is considered to be an outstanding technology investment trend in 2022.

Looking to the future, experts agree that Vietnam’s economic outlook will be brighter in 2022 with reasonable strategies to recover the economy after the pandemic.

The stable socio-political environment and maintaining the current economic growth rate will strengthen the confidence of foreign investors when entering the Vietnamese venture capital market.

Currently, Southeast Asia has the presence of 79 venture capital funds, of which 37 just appeared last year.

The total amount of investment invested by these funds in regional startups is currently $ 7.6 billion. Capital for start-up investment in Southeast Asia is forecast to continue to increase in the coming months.

The chart shows the number and origin of venture capital deals made in Vietnam over the years.

In fact, since the outbreak of the Covid-19 pandemic two years ago, startups have been at the forefront of helping to solve a wide range of problems caused by the pandemic.

The most noticeable role is the important role of delivery platforms, online education platforms, remote working, digital payments… Also thanks to innovation and technology application, many businesses have overcome the crisis and even thrive.

Startups are expected to continue to be the lifeblood of the competitive economy, providing new job opportunities, giving consumers more choice, and challenging innovation. new from traditional businesses.

Trong Dat

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