When will the second unicorn startup appear in Vietnam?

The startup ecosystem has been developing very strongly over the last 15 years, but no other unicorn startup has appeared, except VNG, which was valued at $1 billion in 2014.

There are 326 unicorns globally, most of them technology firms. Vietnam only has one – VNG.

When will the second unicorn startup appear in Vietnam?



A survey by Google and Temasek found that the value of Vietnam’s digital economy rose to $9 billion in 2018, and the figure is expected to reach $30 billion by 2025. However, the figures are not enough for Vietnam’s startups to turn into unicorns.

Explaining this, experts said the ideas and the path followed by Vietnam’s startups are not attractive enough to large investment funds, while the products and services are still small and the policies for startups remain unfavorable. One of the biggest problems in Vietnam is the gap between policymaking and policy implementation.

Explaining this, experts said the ideas and the path followed by Vietnam’s startups are not attractive enough to large investment funds, while the products and services are still small and the policies for startups remain unfavorable. One of the biggest problems in Vietnam is the gap between policymaking and policy implementation.
 

The government has recently set a series of policies offering incentives to startups in science and technology. Under the Decree 13, science and technology firms can enjoy preferential corporate income tax, land rent reduction and get preferences in accessing credit. One of the most attractive investment incentives is the four-year tax exemption and 50 percent tax reduction in the next nine years.


Analysts commented that startups in Vietnam are facing difficulties, especially in calling for investment capital. Pham Kim Hung, CEO and founder of Base.vn, said there are not many investment funds in Vietnam. Meanwhile, investment funds tend to pour money into startups which have developed to a certain level, rather than newly set up ones.

“In the US, startups prove their potential with ideas. Meanwhile, in Vietnam, startups have to do this with figures,” he commented.

However, reports all say that more and more investors are eyeing Vietnamese startups and Vietnam has become a potential destination for venture funds thanks to macroeconomic stability and the attractiveness of the population structure.

With an expected high GDP growth rate of 6.8 percent in 2019 and 6.7 percent in 2020, Vietnam is the fastest growing economy in Southeast Asia in 2019-2020.

Two years ago, Vietnam ranked fifth out of six ranked countries in the amount of capital poured into startups. In 2018, Vietnam jumped omto the third position. Vietnam has a high number of large-scale startups in the internet sector. One of them is VNG.

Le Hoang Uyen Vy from ESP Capital said Vietnam's startup community has seen a remarkable growth in investment capital, both in amount and number of deals, since 2018. The number of investment funds participating in the Vietnamese market is growing strongly. In H1 2019, this number surpassed that of the entire 2018.

Thanh Lich 

Vietnam startups gain on Indonesia, Singapore: Japanese newspaper

Vietnam startups gain on Indonesia, Singapore: Japanese newspaper

Vietnam's start-up sector is closing the gap with regional leaders Indonesia and Singapore with new investment, according to a Nikkei Asian Review article.  

 
 

Other News

.
More sci-tech content in upcoming China-ASEAN Expo
More sci-tech content in upcoming China-ASEAN Expo
BUSINESSicon  06/09/2021 

The whole universe hidden in the VR glasses, magnificent images shown on transparent screens, unmanned aircraft applied in seeding and fertilization..., sci-tech exhibition has become the new hot spot in the China-ASEAN Expo (CAEXPO) in recent years.

VIETNAM BUSINESS NEWS SEPTEMBER 4
VIETNAM BUSINESS NEWS SEPTEMBER 4
BUSINESSicon  04/09/2021 

Vietnam scores high in employee experience

Foreign investors keen on education
Foreign investors keen on education
BUSINESSicon  04/09/2021 

Overseas funds continue to cash in on Vietnam’s education sector with a view to diversify investment portfolios.

Rice exporters feel strain of restrictions
Rice exporters feel strain of restrictions
BUSINESSicon  04/09/2021 

The disruption of the production chain in the past few months is pushing rice exporting and processing companies into an increasingly difficult situation.

Garment and textile groups bemoan curbs
Garment and textile groups bemoan curbs
BUSINESSicon  04/09/2021 

With the autumn-winter season coming up, Vietnam’s garment and textile industry could cash in on the increased demand for clothing. 

CAEXPO embraces RCEP opportunities
CAEXPO embraces RCEP opportunities
BUSINESSicon  04/09/2021 

Cooperation is deepened to improve substantial economic and trade results.

E-commerce platform imports billions of US dollars of Chinese goods
E-commerce platform imports billions of US dollars of Chinese goods
BUSINESSicon  04/09/2021 

The Vietnamese Ministry of Finance believes that it is necessary to have regulations to control exports and imports transacted through e-commerce platforms.

Experts propose solutions to supply chain disruptions caused by COVID-19
Experts propose solutions to supply chain disruptions caused by COVID-19
BUSINESSicon  03/09/2021 

A group of experts of the Hanoi-based National Economics University have put forward several immediate solutions to remove bottlenecks and connect disrupted supply chains that have impacted localities hit by COVID-19.

Agriculture Ministry to open new path for farm produce sales
Agriculture Ministry to open new path for farm produce sales
FEATUREicon  04/09/2021 

“We have to figure out a new ‘farm produce path’ that allows us to connect fields and markets,” said Minister of Agriculture and Rural Development Le Minh Hoan.

VIETNAM BUSINESS NEWS SEPTEMBER 3
VIETNAM BUSINESS NEWS SEPTEMBER 3
BUSINESSicon  03/09/2021 

Bubbles heap pain on vital manufacturers

Five-year restructuring plan aims to improve national economic competitiveness
Five-year restructuring plan aims to improve national economic competitiveness
BUSINESSicon  04/09/2021 

The Ministry of Planning and Investment has said that it is coordinating with relevant ministries, agencies and localities to build a national economic restructuring plan for the 2021-2025 period, 

On-line CAEXPO: Exploiting potential of Internet for new growth
On-line CAEXPO: Exploiting potential of Internet for new growth
BUSINESSicon  03/09/2021 

On the platform of on-line China-ASEAN Expo (CAEXPO), ASEAN Pavilion, China Pavilion, and other virtual pavilions can be found on the homepage.

Offshore wind power: unpredictable 'waves' as investors wait for decision on tariff
Offshore wind power: unpredictable 'waves' as investors wait for decision on tariff
FEATUREicon  03/09/2021 

Many offshore wind power investors are holding their breath waiting for the next move of the Ministry of Industry and Trade and the Government.

Vietnam Airlines pilots IATA Travel Pass on flight to Europe
Vietnam Airlines pilots IATA Travel Pass on flight to Europe
BUSINESSicon  03/09/2021 

National flag carrier Vietnam Airlines successfully piloted the IATA Travel Pass on a flight from Hanoi to London on September 2 with the participation of 18 passengers.

Online Vo So platform sells food in HCM City
Online Vo So platform sells food in HCM City
BUSINESSicon  02/09/2021 

After HCM City resumed operation of goods delivery services on August 31, Viettel Post and Vo So e-commerce platform opened an "online market" to provide food and essential goods for people at hcm.voso.vn.

VIETNAM BUSINESS NEWS SEPTEMBER 2
VIETNAM BUSINESS NEWS SEPTEMBER 2
BUSINESSicon  02/09/2021 

Online trade promotion is currently considered as an effective solution for businesses to maintain contacts with their export markets and also a tool to learn about market trends, developments and demand.

Vietnam boosts high-tech industry
Vietnam boosts high-tech industry
BUSINESSicon  02/09/2021 

Vietnam has targeted mastering a number of high technologies to form an ecosystem of enterprises producing high-tech products, and put them into production to increase the export value of high-tech products by 2030.

Government urged to loosen restrictions, speed up vaccinations to save economy
Government urged to loosen restrictions, speed up vaccinations to save economy
FEATUREicon  02/09/2021 

Economic indexes show the situation is getting worse in the country. The most concerning issues are social distancing extensions and other restrictions.

Standard Chartered revises down Vietnam’s 2021 GDP growth forecast to 4.7%
Standard Chartered revises down Vietnam’s 2021 GDP growth forecast to 4.7%
BUSINESSicon  02/09/2021 

Standard Chartered has revised down its forecast for Vietnam’s gross domestic product (GDP) growth this year from 6.5% to 4.7%.

Experts discuss obstacles for rooftop solar power
Experts discuss obstacles for rooftop solar power
BUSINESSicon  01/09/2021 

Solar experts have raised difficulties and problems in policies and procedures for investment, installation and operation of solar power systems in Vietnam at a seminar.

 
 
 
Leave your comment on an article

OR QUICK LOGIN