Vietnam to be Asia's next startup hub
In an interview with Bloomberg recently, Binh Tran - co-founder of Ascend Vietnam Ventures - said that Vietnam's nascent start-up sector is developing and Vietnam is becoming the next technology hub of Southeast Asia.
Binh said that venture capital poured into startups in Vietnam reached 2.1 billion USD in 2021, compared to only 48 million USD in 2017. Moving his business from San Francisco (USA) to Vietnam in 2020, Binh said that the startup sector in Vietnam is attracting top venture capitalists in Silicon Valley. Well-known venture capital funds in San Francisco such as Goodwater Capital LLC, Accel Partners LP and Altos Ventures Management Inc have poured capital into innovative Vietnamese enterprises.
He said that the startup sector in Vietnam is witnessing remarkable growth. “This has turned Vietnam into an important startup hub in Asia,” said Binh.
Binh’s 500 Global Vietnam venture capital fund has invested in about 70 companies in the fields of e-commerce, financial technology (Fintech) and healthcare in Vietnam.
According to the e-Conomy report published by Google, Temasek and Bain & Company, the total value of Vietnam's Internet economy in 2021 is expected to reach 21 billion USD, up 31%. This is mainly thanks to the 53% growth of the e-commerce industry.
Google, Temasek and Bain & Company predicted that by 2025, the entire Internet economy in Vietnam will be worth 57 billion USD and the compound annual growth rate (CAGR) will be 29%.
Vietnam should learn from India and Singapore’s experiences in attracting foreign startups, Dao Quang Binh, Head of Market Development Division at TECHFEST 2021, said.