Vietnam’s startups make arduous efforts to call for foreign capital

Most Vietnamese startups find it difficult to call for investment, especially foreign investment.

Vietnam is listed among 20 economies with high entrepreneurial spirit, but it is also among 20 countries with the lowest capability of implementing business plans. Only 3 percent of Vietnam’s startups achieve success, and 80 percent exist for no more than two years.

Vietnam’s startups make arduous efforts to call for foreign capital



The annual report on investment in Vietnam’s startups by Topica Founder Institute (TFI) found that there have been 92 investment deals with $900 million poured into startups. The most noticeable deals include Yeah 1 ($100 million), Sendo ($51 million) and Topica ($50 million).

The five business fields which attracted most of the venture capital include fintech, e-commerce, TravelTech, Logistics and EdTech.

Foreign investors tend to make venture investments in startups in fintech, high-tech agriculture and real estate.

2019 saw the biggest capital flow in startups. TFI and Insigna Ventures Partners committed to provide fixed capital to startups. The only requirement startups had to meet was to finish the TFI startup training program.

Vietnam’s startup ecosystem marked a new milestone in 2019 when attracting $246 million worth of capital from South Korean investors within six months.

Vietnam’s startup ecosystem marked a new milestone in 2019 when attracting $246 million worth of capital from South Korean investors within six months.

 

Analysts say that this was a big jump from an unknown startup ecosystem into the top 3 among the six most powerful communities in ASEAN, after Indonesia and Singapore.


Foreign investors pour money into startups in the field of technology because this is a market with potential.

Today's young people in Vietnam have opportunities to access advanced educational methods and the latest achievements of mankind. Vietnamese consumers have great demand for technology products and services (smartphone users account for 72 percent), and have a high level of online communication and mobile device usage.

However, most startups complain that it is nearly impossible for them to call for investments, especially foreign investments. Even startups with good business ideals find it difficult to attract foreign capital. Foreign capital has significant influence on Vietnamese startups.

The investment capital poured into Vietnam’s startups is much lower than in other regional countries and very few startups can call for tens of millions of dollars. Many foreign investment funds are present in Vietnam, but foreign capital remains inaccessible. This is attributed to the legal barrier toward venture funds.

Chu Thi Hoa from the Ministry of Justice said that Vietnam lacks a legal framework for new types of business, thus placing difficulties for businesses.

There are 40 operational venture funds, double the number in 2015.

Mai Lan 

Vietnam promotes innovative startup ecosystem in Singapore

Vietnam promotes innovative startup ecosystem in Singapore

The “Techfest Vietnam in Singapore” took place in Singapore on November 11 to introduce the Techfest Vietnam festival in 2019 and Vietnam’s innovative startup ecosystem to international partners.

Hanoi splashes out US$13.5 mln on startup, innovation activities

Hanoi splashes out US$13.5 mln on startup, innovation activities

The Hanoi People’s Committee has recently approved a VND312 billion (US$13.5 million) project to support start-ups and innovation in the capital from 2019-25.

 
 

Other News

.
ASEAN pushes forward with 5G connectivty cooperation
ASEAN pushes forward with 5G connectivty cooperation
BUSINESSicon  17/10/2020 

As ASEAN chair this year, Vietnam is playing a crucial role in further cementing joint activities within the bloc via boosting the application of high technologies to adapt to Industry 4.0, which is sweeping throughout the region.

Real estate stocks await cash flow
Real estate stocks await cash flow
BUSINESSicon  17/10/2020 

Domestic and foreign capital flow is expected to bolster real estate shares after the COVID-19 pandemic as many investors are paying attention to the industry.

Many hoteliers intend to divest capital due to heavy losses
Many hoteliers intend to divest capital due to heavy losses
BUSINESSicon  16/10/2020 

Over the past eight months, hotel room tariffs have plunged and hotel room occupancy rates have remained low, forcing several hoteliers to divest capital with many financially weak hotels in the local market being put up for sale.

Meeting expectations of the corporate bond market
Meeting expectations of the corporate bond market
BUSINESSicon  16/10/2020 

A new government decree tightens conditions on the issuance of corporate bonds. However, before the decree came into effect, enterprises flooded the market with new issuances.

Thai billionaire, European brewer lose money in Sabeco investment deal
Thai billionaire, European brewer lose money in Sabeco investment deal
BUSINESSicon  16/10/2020 

The Sabeco price has seen a strong recovery in the last half a year, but is still at a low price. Both Thai billionaire and the big brewer Heineken have lost money because of the drop in Sabeco share price.

Investors lose billions of VND as land prices keep rising
Investors lose billions of VND as land prices keep rising
FEATUREicon  17/10/2020 

A lot of real estate traders have missed opportunities to make huge profits because they decided to postpone purchasing plans, hoping that prices would decrease further.

Salary increases in 2020 lowest in 10 years: survey
Salary increases in 2020 lowest in 10 years: survey
BUSINESSicon  16/10/2020 

Salaries increased by 6.5% this year at multinational companies (MNCs) and 5.2% at Vietnamese companies, and are forecast to increase by 7 per cent and 7.7% next year, according to the Talentnet – Mercer Total Remuneration Survey.

The right structural adjustments help Vietnam achieve long-term growth aspirations
The right structural adjustments help Vietnam achieve long-term growth aspirations
BUSINESSicon  17/10/2020 

No nation has escaped the threat of COVID-19 to lives and livelihoods, with many countries seeing cases resurge recently. 

State firms more resilient than foreign, Vietnamese private companies: survey
State firms more resilient than foreign, Vietnamese private companies: survey
BUSINESSicon  15/10/2020 

Business resilience is highly correlated with level of digitisation, the Business Pandemic Resilience Diagnostic conducted by Grant Thornton...

Pandemic a test of fire for Vietnamese enterprises
Pandemic a test of fire for Vietnamese enterprises
BUSINESSicon  15/10/2020 

The COVID-19 pandemic has been a test for Vietnamese businesses as many have been and will be struggling to recover for the foreseeable future. 

Five expy projects unlikely to attract private investors
Five expy projects unlikely to attract private investors
BUSINESSicon  15/10/2020 

Although the National Assembly Standing Committee has given its approval to switch three of the eight subprojects of the North-South Expressway from the public-private partnership (PPP) format into wholly State-invested, 

Only 5% FDI projects in Vietnam use high technologies
Only 5% FDI projects in Vietnam use high technologies
BUSINESSicon  15/10/2020 

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

The Vietnamese brain will decide
The Vietnamese brain will decide
FEATUREicon  16/10/2020 

"Vietnamese have nothing but brains to develop the country in the future." 

Stable outlook expected for Vietnamese dong
Stable outlook expected for Vietnamese dong
BUSINESSicon  16/10/2020 

While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners.

Vietnam banking sector to suffer in 2020 before rebounding in 2021
Vietnam banking sector to suffer in 2020 before rebounding in 2021
BUSINESSicon  15/10/2020 

Fitch Solutions expected credit growth to weaken to 7% in 2020 from 13.7% in 2019, but the growth is predicted to pick up to 12% one year later.

Realising revised growth ambitions
Realising revised growth ambitions
BUSINESSicon  15/10/2020 

Vietnam’s fourthquarter economic outlook is brighter on the back of a rise in domestic consumption and public investment.

Businesses line up for further support
Businesses line up for further support
BUSINESSicon  15/10/2020 

Continued facing with massive woes, the business community in Vietnam is in dire need of the government’s assistance for investors and enterprises to struggle through the global health crisis and grabbing new business

Infrastructure development at the centre of PPP decree direction
Infrastructure development at the centre of PPP decree direction
BUSINESSicon  16/10/2020 

Further clarifying the legal framework for infrastructure development via wider participation of private investors is expected to help the country attract more funding into the industry.

Gov’t support aids automobile industry
Gov’t support aids automobile industry
BUSINESSicon  14/10/2020 

The domestic automobile industry was forecast to thrive, given the Government’s supports in tax policies for imported automobile components coupled with the increasing income of citizens.

Digital economy and fintech see growth amid COVID-19
Digital economy and fintech see growth amid COVID-19
BUSINESSicon  15/10/2020 

The Prime Minister’s Economic Advisory Group met with the local fintech firm MoMo in HCM City on Monday.

 
 
 
Leave your comment on an article

OR QUICK LOGIN