Change in capital (left) and change in deal (right) for startups. Photo: VNN

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

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 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.

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

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

If only considering 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 poured into the region in the past year.

Vietnam also accounts for 19% of total transactions to startups in the top six ASEAN economies in 2021.

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

Photo: VNN

The fields that investors are most interested in when looking to Vietnamese startups are games, entertainment, payments, retail and education.

Upcoming investment trends 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 Tech 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.

For 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. Photo: VNN

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.

The total amount of investment invested by these funds in regional startups is currently US$7.6 billion. Capital for startup 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. Photo: VNN

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 is the important role of delivery platforms, online education platforms, remote working, digital payments. Thanks to innovation and application of technology, many businesses have overcome the crisis and even thrived.

Startups will continue to be important to the competitive economy, providing new job opportunities, giving consumers more choices, while challenging the innovation ability of traditional businesses.

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