return icon Vietnamnet.vn

‘Golden era’ of Vietnamese start-ups

With the development potential and the ability to catch the technology wave, Vietnamese start-ups have attracted foreign venture capital funds as well as domestic investors.

{keywords}

 

Wavemaker Partners, a venture fund with headquarters in the US and Singapore, has poured capital into five start-ups, including Foodmap, DatBike, Vigo Retail, MindX and Medici.

Attractive market

In an interview with Bloomberg Asia earlier this year, Mr. Binh Tran, co-founder and representative of Ascend Vietnam Ventures Fund, said the "golden era" of Vietnamese start-ups has arrived.

According to experts, the technology startup ecosystem in Vietnam is only about five years old, but the market has grown strongly as it receives comprehensive support from the Government and human resources from abroad, and is supported by Vietnam’s steady economic growth.

With an accessible technology ecosystem, low cost of living, a safe and stable environment, and a team of talented software engineers with an affordable salary compared to other countries in the region, Vietnam is considered an ideal place for technology companies which are targeting at the emerging Asian market.

Mr. Binh Tran said that some leading foreign investment funds such as Andreessen Horowitz (a16z), Goodwater, and Altos are very interested in opportunities in Vietnam.

Great opportunities are in start-ups applying new technologies, such as blockchain games, DeFi (blockchain based - financial applications) and cryptocurrencies. According to a report by Chainalysis, Vietnam tops the list of 154 countries and territories in terms of cryptocurrency adoption rate and ranks second for DeFi.

Rajan Anandan, Managing Director of Sequoia Capital India and Surge, told Investment Newspaper that Vietnam is emerging as an important hub for startups in Southeast Asia.

Many startups play a role of leverage for Vietnam's digital economy, which is expected to reach a value of about US$57 billion by 2025 and rank second in Southeast Asia by 2030 with a scale of about $220 billion.

“We appreciate Vietnam’s potential to become a major innovation center in the region and we look forward to meeting local founders,” said Rajan Anandan.

Meanwhile, Ms. Tran Hoai Phuong, Investment Manager in Vietnam of Wavemaker Partners, a venture capital fund based in the US and Singapore, said that in Southeast Asia, Vietnam is second only to Indonesia in terms attractiveness for venture capital funds with the potential to have "unicorns" (start-ups with a valuation of over $1 billion).

Cooperation between domestic and foreign funds

In Vietnam, Wavemaker Partners has invested into five start-ups, including Foodmap, DatBike, Vigo Retail, MindX and Medici. Hoai Phuong revealed that this year, the fund will invest in three to four startups in Vietnam this year.

At the same time, Sequoia Capital India and Surge have also sought cooperation opportunities in Vietnam, through investing in startups in various fields such as Rino, Trusting Social, Solscan, Galaxy Fight Club, Telio, Infina, Thuocsi, HelloMida, Virtual Internships and Epsilo.

Local experts said that foreign funds have strengths in capital and experience in doing business in the international market, but their resources in the domestic market are limited while this is the advantage of domestic investment funds. Founded by Vietnamese entrepreneurs, domestic funds have a deep understanding of the market, with a large network of partners and resources, so they can provide real support to local startups.

Dau Tu

Local start-up launches Blockchain Meta Universe ecosystem

Local start-up launches Blockchain Meta Universe ecosystem

A group of products including an e-wallet, a launchpad and game projects is about to be launched by a Vietnamese startup.

MORE NEWS

Achilles heel in tourism

Vietnam’s tourism industry has made only meager strides in diversifying its products despite years of growth.

The most addictive dish on Ha Giang plateau

Ha Giang attracts tourists not only for its majestic natural landscape and honest ethnic people but also for its bold, regional specialties that cannot be found anywhere else.

Liquidity needs to be ensured: Central bank

The Governor of the State Bank of Vietnam (SBV) sent important messages about monetary policies at a meeting with businesses held by SBV and HCM City People’s Committee late last week.

Firms hesitate to access loans due to weak consumption demand

The State Bank of Vietnam last week cut its policy rates for the third time this year to prop up economic growth.

Banks experience significant increases in non-performing loans

Given the challenging economic environment, the performance of numerous banks is rather bleak, particularly due to the mounting bad debt levels.

VIETNAM BUSINESS NEWS MAY 29/2023

Work on Cat Bi Airport’s Terminal T2 to start in Q4

Vietnam should consider announcing the end of COVID-19: NA deputy

At the ongoing fifth session of the 15th National Assembly (NA) held on May 29, Nguyen Lan Hieu of the NA Delegation of Binh Dinh province suggested that the end of COVID-19 should be announced.

Cut on automobile registration fees to facilitate auto industry

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered a positive effect to the auto industry in the context of the automobile market facing many difficulties.

VIETNAM NEWS HEADLINES MAY 29/2023

Vietnam leaves good impressions at multi-ethnic festival in Czech Republic

Vietnam to build center for search and rescue in Spratly Islands

Deputy Prime Minister Tran Luu Quang has approved a project to improve the capacity of incident and natural disaster response and search and rescue to 2030, with a vision to 2045.

Male model finishes as third runner-up at World Fitness Supermodel

Ngo Hoang Linh, the Vietnamese representative at World Fitness Supermodel 2023, was awarded the third runner-up title during the male pageant’s grand final held on May 27 in Thailand.

Old Vietnamese publications in romanised script on display in Paris

An exhibition showcasing old Vietnamese publications in Chu Quoc ngu (romanised Vietnamese script) is underway in Paris, France.

HCMC police raze black-credit companies with illicit profits of over US$176mln

The Ho Chi Minh City Department of Public Security yesterday prosecuted nine people for usury in civil transactions.

Entertainment and cultural events of the week (May 29-June 4/2023)

Upcoming entertainment and cultural events in Vietnam's major cities on May 29-June 4.

More cooperation needed to develop rare earth industry in Vietnam

The applications for rare-earth element products have developed strongly in recent decades, especially in the field of agriculture in which they are used to create clean, safe, and effective agricultural products.
back_to_top