Vietnam - Southeast Asia’s new hottest startup ecosystem

“Vietnam is shaping up to be Southeast Asia’s next hottest startup ecosystem” is the title of an article recently posted on the website of TechinAsia – the largest English-language technology media company in Singapore.

Vietnam - Southeast Asia’s new hottest startup ecosystem

According to the article, Singapore and Indonesia have traditionally dominated Southeast Asia’s startup scene. But now, a new contender is emerging. It is Vietnam.

The fact that Vietnam has one of the fastest-growing startup ecosystems in the world might come as a surprise to some because only a decade ago, Vietnam was practically a nonentity on this front.

The article quoted Eddie Thai, general partner at 500 Startups Vietnam, as saying from a poor country with GDP per capita of barely over 2,000 USD and struggling to create an ecosystem for the few disconnected founders and even fewer active angles and venture capitalists, Vietnam has now almost caught up with Singapore and Indonesia’s startup growth rate

According to TechinAsia’s data, the total funding amount for all startups in Vietnam was just 6 million USD in 2013. However, five years later, Vietnam’s startups scored 193 million USD thanks to a number of deals in mature companies.

That year, the biggest sum of money went to Yeah1Network, a multichannel content network that netted an estimated 100 million USD from a group of investors.

Online education provider Topica EdTech Group and e-commerce platform Sendo have also received a lot of attention and funding, snapping up 50 million USD and 51 million USD respectively, according to TechinAsia.

The article said 2019 is already shaping up to be a big year with private equity firm Warburg Pincus investing about 100 million USD in payments firm Momo.

The completion of these big deals is an important indicator, the article said, adding that it offers early-stage investors a chance to sell their stakes and realise their gains, which could eventually drive even more investments into Vietnam.

Data from Topica Founder Institute (TFI), a startup accelerator programme based in Vietnam and Thailand, showed that the total deal value for Vietnamese tech firms in 2018 was closer to 900 million USD, compared to the 291 million USD in 2017.

 

Thai from 500 Startups Vietnam said Vietnam could be in the top three in the world by the number of engineers in five years.

At present the country has around 250,000 engineers and the number of tech-related jobs has also doubled in the last three years.

According to Thai, support from Vietnam’s government is an asset for startup development.

In 2016, Prime Minister Nguyen Xuan Phuc approved the Supporting National Innovative Start-up Ecosystem to 2025 Project, also known as Project 844. Among its goals is to develop a legal system and national e-portal for startups by 2020 and give funding to 200 startup enterprises.

In January 2018, the Law on Support for Small and Medium-Sized Enterprises also came into effect, which details how startups can get help in areas such as technology transfer, training, trade promotion, investment, preferential loans, and incentives for venture capital funds, he noted.

The article also mentioned challenges that Vietnam could encounter ahead. For example, the country will need to prove that it can create wave after wave of high-value tech companies.

It suggested regulations and processes around the local startup ecosystem can be further streamlined so that Vietnamese startups can be agile and aggressive enough to compete with foreign counterparts.-VNA

Deep-tech startups have lower risks, less need for big money

Deep-tech startups have lower risks, less need for big money

Tuan Cao, CEO of Genetica, said starting a business in deep tech only needs simple conditions and a question good enough to solve.  

Facilitating venture capital towards Vietnamese startup development

Facilitating venture capital towards Vietnamese startup development

Vietnam is working hard to unclog financial resources to develop a knowledge-based digital economy amid the wide influences of Industry 4.0.

 
 

Other News

.
Coronavirus: Moguls and lobbyists get millions in government aid
Coronavirus: Moguls and lobbyists get millions in government aid
BUSINESSicon  08/07/2020 

Kanye West's apparel brand, Jared Kushner's family and Donald Trump's lawyer were among the recipients.

Hanoi emphasising its investment advantages
Hanoi emphasising its investment advantages
BUSINESSicon  08/07/2020 

While Hanoi is making further improvements to call for fresh investment in development of industrial zones to pick up a new possible wave of investment shifts, the problem of how to efficiently absorb the capital must be taken into consideration.

Bank accounts of local advertisers to be drained for Facebook and Google tax arrears
Bank accounts of local advertisers to be drained for Facebook and Google tax arrears
BUSINESSicon  08/07/2020 

Dozens of thousands of local advertisers of Facebook and Google are on edge since the Law on Tax Administration has come into force on July 1.

Fashion rivals continuing to suffer in coronavirus fallout
Fashion rivals continuing to suffer in coronavirus fallout
BUSINESSicon  08/07/2020 

Thousands of dismissed labourers at suppliers in Vietnam has exacerbated the floundering performance of major garment and footwear brands across the globe like Adidas, Nike, and Zara.

VN customs watchdog to focus on origin frauds
VN customs watchdog to focus on origin frauds
BUSINESSicon  08/07/2020 

The General Department of Customs will focus on cracking down origin frauds and illegal transhipment as violations are becoming more rampant and complex as Viet Nam integrates more deeply into the global economy.

Vietnam to increase rice exports to EU under EVFTA
Vietnam to increase rice exports to EU under EVFTA
BUSINESSicon  08/07/2020 

Rice quotas for Vietnam under the EVFTA are expected to push Vietnam’s rice exports up from the second half of this year, according to the Ministry of Industry and Trade (MoIT).

Higher labor productivity: pay rise
Higher labor productivity: pay rise
BUSINESSicon  08/07/2020 

Business owners should be authorized to decide whether minimum wages are raised or not in the year that follows because it is only they who are able to determine whether labor productivity

Vietnamese enterprises: The evidence of inefficiency
Vietnamese enterprises: The evidence of inefficiency
BUSINESSicon  08/07/2020 

While the 2020 White Book on Vietnamese businesses offers only data which can be used for reference, this report points out that the majority of Vietnamese enterprises are very small, and their business efficiency seems to be also extremely low.

Da Lat - hub of flower exports
Da Lat - hub of flower exports
BUSINESSicon  08/07/2020 

Da Lat, known as the city of flowers, is set to become a fresh flower export hub in Southeast Asia. 

Car sales in Vietnam rocket after registration fee cut
Car sales in Vietnam rocket after registration fee cut
BUSINESSicon  08/07/2020 

After the Government’s move to lower car registration fees by half took effect more than a week ago, the domestic car market has picked up.

State budget revenue reaches seven-year record low
State budget revenue reaches seven-year record low
BUSINESSicon  08/07/2020 

The total State budget revenue was estimated to be at VND668,700 billion, equaling 44.2% of the anticipated amount by the end of June, marking a 10.5% drop over the same period last year and the lowest levels since 2013.

Car sales rocket after registration fee cut
Car sales rocket after registration fee cut
BUSINESSicon  08/07/2020 

After the Government’s move to lower car registration fees by half took effect more than a week ago, the domestic car market has picked up.

EuroCham stresses importance of stimulus packages in Vietnam’s post-pandemic recovery
EuroCham stresses importance of stimulus packages in Vietnam’s post-pandemic recovery
BUSINESSicon  08/07/2020 

State financial support for companies hit hard by the Covid-19 pandemic, regardless of the level they are yet, and subject to the Government’s consideration in terms of budget range and macroeconomic stability, 

Private sector involvement proposed in Chu Lai airport project
Private sector involvement proposed in Chu Lai airport project
BUSINESSicon  07/07/2020 

The authority of Quang Nam Province has proposed that private investors be allowed to participate in the construction, management and operation of Chu Lai airport, similar to the investment model adopted for Van Don airport in Quang Ninh Province.

Fitch Ratings says Vietnam outperforms among Asia’s frontier sovereigns
Fitch Ratings says Vietnam outperforms among Asia’s frontier sovereigns
BUSINESSicon  07/07/2020 

According to Fitch Ratings, Vietnam is positioned to stand out among Asia’s frontier and emerging markets this year as a result of its economic resilience and success in bringing the novel coronavirus pandemic under control.

Vietnam’s bond market posts highest growth in emerging East Asia: ADB
Vietnam’s bond market posts highest growth in emerging East Asia: ADB
BUSINESSicon  07/07/2020 

The local currency (LCY) bond market in Vietnam posted the highest growth in the emerging East Asia region, as authorities took fiscal and monetary policy actions to mitigate the economic fallout from the coronavirus pandemic.

China is largest plywood investor in Vietnam
China is largest plywood investor in Vietnam
BUSINESSicon  07/07/2020 

China has invested in 29 plywood projects worth over US$150 million in Vietnam, becoming the country’s largest plywood investor, according to Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association.

Customs authority discovers multiple cases of origin fraud
Customs authority discovers multiple cases of origin fraud
BUSINESSicon  07/07/2020 

Country of origin fraud cases, wherein Chinese products bear Made-in-Vietnam labels, are on the rise, with Vietnam’s customs authority recently inspecting 76 cases

Thai firm buys two wind power farms in Vietnam
Thai firm buys two wind power farms in Vietnam
BUSINESSicon  07/07/2020 

The move aims to take advantage of low interest rates to build projects with a quick return on investment.

FIEs displeased with government demand to license internal websites
FIEs displeased with government demand to license internal websites
BUSINESSicon  07/07/2020 

The new regulations of the MIC may affect the policies and assets of private businesses and foreign-invested enterprises in Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN