return icon

Investment into local start-ups expected to rise this year

The investment capital into Vietnamese start-ups this year would see a breakthrough despite a year-on-year decrease of 48 per cent in 2020 to reach US$451 million.

Investments into Vietnamese start-ups this year would increase. — Photo

The information was announced in the Vietnam Innovation and Technology Investment Report 2020 jointly released by the National Innovation Centre (NIC) under the Ministry of Industry and Trade and Do Ventures on Monday.

The report said that 2020 was a challenging year but was full of opportunities for investment into innovation and technology around the world and in Vietnam.

It said the decrease was mainly due to the absence of significant investments closed by major companies in the previous year.

However, the number of investments decreased slightly at 17 per cent, of which 60 deals were recorded in the second half of 2020 – a similar number to the same period last year.

“This shows that, after a sharp decline in the first quarter of 2020, venture capital activity began to recover from the second quarter of 2020 onwards,” the report said.

Payments and retail sectors continue to receive the highest value investments due to their key role in the development of the internet economy. Investment capital in payments and retail were $101 million and $83 million, respectively.

Some industries such as human resource technology (HRTech) and real estate technology (PropTech) continued to attract investment, while industries such as education technology (EdTech), health technology (MedTech), and software as a service (SaaS) were on the rise due to the change in behaviour of consumers and businesses during the COVID-19 pandemic.

In the difficult context of the global economy because of the pandemic, the number of foreign investors only slightly decreased in 2020, showing that Vietnam is still an attractive destination for investors. The strongest activity came from domestic investors and investors from South Korea and Singapore.

The steady funding into start-ups in the early stages is especially important for the health of the entire venture capital ecosystem. Do Ventures recorded more than half of the total number of investments in Vietnamese technology start-ups were made by domestic investment funds.

“This is an indication showing the important role that domestic investors play in supporting start-ups in the early stages to continue to go further in this challenging period,” said Do Ventures.

The report said that although Vietnam's technology investment market experienced an inevitable slowdown due to the impact of COVID-19, founders in the country have taken advantage of all available resources to survive and continue to grow because the crisis is always a powerful catalyst for disruptive business models to emerge.

“We believe that, with efforts from the Government to promote digital economic growth and create a favourable business environment to attract foreign investment, Vietnamese start-ups will have many opportunities to breakthrough when investment activity gradually recovers,” the report added.

The Vietnam Innovation and Technology Investment Report 2020 was released on the basis of co-operation between Do Ventures and NIC. This is a project for successful combination between a private venture capital fund and a State agency with the common goal of building an innovation ecosystem in Vietnam.

Vu Quoc Huy, NIC’s director, said: “NIC is researching and proposing to build a legal environment for innovation in Vietnam as well as specific programmes, policies, and testing mechanisms to support innovative businesses. The report aims to provide information to investors on innovation investment activities in the country, thereby attracting domestic and foreign investment capital for innovation."

Le Hoang Uyen Vy, CEO of Do Ventures, said: “The challenges spanned the whole of 2020 and will probably not stop in the near future. However, as people operating in the field of innovation, we always see opportunities in difficulties. Do Ventures believe in the ability of entrepreneurs to overcome obstacles to create new values ​​for society and at the same time is committed to always supporting them during key times.” 


Investors pour money into startups, promote unicorns

Investors pour money into startups, promote unicorns

Vietnam tops the list of destinations for venture investors for the next 12 months.

Startups expand with fresh funding and portfolios

Startups expand with fresh funding and portfolios

Despite the global recession, Vietnamese startups have still been attracting millions of US dollars from foreign funds in the beginning of 2021.


Ministry proposes amending visa policy

The Ministry of Public Security (MPS) will propose to the National Assembly adding an amendment of the visa and e-visa policy to the National Assembly’s general resolution at the nearest upcoming session (May 2023).

EVN urged to finalize renewable electricity prices by end-March

The Ministry of Industry and Trade has requested the Vietnam Electricity Group (EVN) to complete pricing talks on solar and wind power with investors before March 31 to put 85 power plants into operation.

Deputy PM Tran Luu Quang heads special task force

Prime Minister Pham Minh Chinh has signed a decision assigning Deputy Prime Minister Tran Luu Quang as head of the special task force in charge of dealing with problems faced by investment projects.

Vietnam sorry about US’ flawed report on its human rights situation: Foreign ministry

Vietnam on Thursday said the newly released United States' Human Rights Report contains "biased comments" that are based on false information about the real situation in the country.

Vietnamese top female badminton player jumps to world's Top 40

Vietnamese top female badminton player Nguyen Thuy Linh has advanced to the top 40 of world rankings after coming second at the Thailand International Challenge 2023.

Vietnamese boxer Nguyen Thi Tam advances to world championship finals

Vietnamese boxer Nguyen Thi Tam made history by entering the finals of the International Boxing Association (IBA) Women’s World Boxing Championships after winning French opponent Lkhadiri Wassila with an overall score of 4-1 in India on March 23.

US companies upbeat on investment opportunities in Vietnam

Many US companies see Vietnam as a manufacturing hub that provides services to increasingly wealthy consumers.

Vietnam's sugar industry to recover this year

Uncompetitive prices of imported sugar after anti-dumping taxes will boost demand for locally produced sugar.

Nordic countries share green solutions for circular economy with Vietnam

A scientific seminar titled “Green solutions for circular economy and waste management: Nordic experiences and policy implications for Vietnam” was held in Hanoi on March 23.

Hanoi hospital performs 100th multi-organ transplant from a brain-dead donor

From 100 brain-dead donors, the Vietnam-Germany Friendship Hospital’s doctors have successfully performed 50 heart, 83 liver, 157 kidneys, six lung transplants and many other tissue transplants.

VN supporting industries fear they may lose in home market

Enterprises in supporting industries now have great opportunities to develop but they will not grasp the opportunities if they can’t get support from the state.

Meta, SpaceX, Amazon want to help develop Vietnam's digital economy

Impressed by the development of Vietnam's ICT market, a delegation of leading US technology corporations including Meta, Roblox and SpaceX have expressed  their desire to cooperate with Vietnamese partners to promote the digital economy.

Hanoi named among Vietnam's most beautiful places

The charming capital of Vietnam has won the hearts of many foreign tourists for its rich culture, beautiful east-meets-west buildings, and wonderful street food.

McDonald’s Vietnam wins Golden Dragon Award for the 5th  consecutive time

McDonald's Vietnam received its 5th Golden Dragon Award at a ceremony held on March 17 in the central city of Da Nang during the Vietnam Development Bridge Forum (Vietnam Connect).

Vietnam's digital economy value expected to be $49 billion by 2025

Vietnam’s digital economy is predicted to continue growing with a CAGR (compound annual growth rate) of 31 percent with value reaching $49 billion by 2025, according to a report about e-commerce.