Despite the overall challenging market conditions, experts remain optimistic about investment opportunities for startups and innovative enterprises in Vietnam. This positive outlook was shared at the recent “Investment Trends and Opportunities 2024” program.
According to Mr. Lam Quoc Thai, Senior Director of VinaCapital Venture Capital Fund, while it is too early to draw definitive conclusions about investment flows into Vietnamese startups in 2024, data from 2023 and the first half of 2024 indicates a clear trend of declining investment, particularly in venture capital.
However, this quantitative decrease is coupled with a more focused allocation of capital towards startups with strong operational performance, signifying a more discerning market.
At VinaCapital Venture Capital Fund, startups with breakthrough technology projects continue to attract significant funding. Notably, startups focusing on leveraging technology to address existing challenges in traditional industries in Vietnam, such as education, healthcare, and logistics, are garnering increased attention from investors.
Sharing a similar perspective, Ms. Hoang Thi Kim Dung, Country Director of Genesia Ventures Vietnam, points out that the current context presents challenges not only for Vietnamese startups but also globally. However, the decline in investment capital provides an opportunity for startups to demonstrate financial autonomy and leverage their internal resources rather than relying solely on external funding.
Another notable silver lining is the improving quality of products and services offered by Vietnamese startups. Even during difficult times, enterprises remain committed to technological innovation and creativity to optimize their operations.
By delivering quality products and services that meet customer needs and satisfaction, startups establish a valuable and sustainable source of capital. Customers not only generate revenue and stable cash flow but also play a pivotal role in the long-term growth of the business.
Commenting on startups in the field of artificial intelligence (AI), Mr. Erik Jonsson, CEO of Antler Vietnam, notes that AI startups are capturing the interest of investors.
In Vietnam, several AI startups have demonstrated substantial potential, provided they can identify lucrative markets and processes where AI can be effectively applied. As investment capital tightens in later stages, startups must establish their competitive advantage, even when utilizing novel and promising technologies like AI.
Many Vietnamese founders are still inclined to replicate business models that have succeeded in Europe and America, considering Vietnam as a potential market to implement similar ideas. However, Vietnam has established itself as one of the fastest-growing economies in Southeast Asia over the past decade.
With a market of over 100 million people, Vietnam is becoming an attractive destination for both foreign businesses and investors. Several experts believe that Vietnam has the potential to emerge as a regional hub for startups, akin to Singapore today.
However, Mr. Erik Jonsson cautions that while Vietnam presents a promising “greenfield” for startups, not all business models will easily thrive here. “Vietnam is an ultra-competitive market. To succeed in Vietnam, you must accurately identify market demands, understand the culture, and seize opportunities as early as possible,” emphasizes Mr. Jonsson.
Ms. Hoang Thi Kim Dung advises foreign enterprises intending to enter the Vietnamese market to seek local partners or start by building a local team. These partners or teams will play a crucial role in effectively conveying the company’s mission and vision to a unique market like Vietnam.
“Vietnam can certainly prove to be a reliable destination for investors,” asserts Ms. Dung. The positive signals in economic growth and the vibrant startup ecosystem indicate that there is still ample room for development in this market.
Similarly, Mr. Lam Quoc Thai believes that compared to more mature venture capital markets like the US, Vietnam is still in its infancy, with only about 20 years of history. Nonetheless, Vietnam’s inherent strengths, such as its large population and high-quality human resources, continue to be attractive to investors. “We are very optimistic about the development of Vietnamese startups in the future, especially in the technology sector,” says Mr. Thai.
The most extensive bribery case ever in Thanh Hoa: Numerous suspects prosecuted for “Giving and Receiving Bribes”
The Provincial Security Investigation Agency (PSIA) of Thanh Hoa province announced on January 31st that it has made the decision to initiate a prosecution against 23 individuals in connection with the offenses of “Accepting bribes” and “Giving bribes” as stipulated in Article 354(3) and Article 364(2) of the Criminal Code.
Accelerating disbursement of the 120 trillion VND credit package for social housing
Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
“Prosecution of government officials, land registration officers, and tax department employees in the largest bribery case ever”
The Thanh Hoa Police Investigative Agency has initiated legal proceedings against 23 individuals involved in the crimes of “Bribery” and “Receiving bribes”. This is the largest bribery case in terms of the number of suspects ever discovered and apprehended by the Thanh Hoa Police.
Mobile World achieves revenue of VND118,000 trillion: TVs, tablets, and phones all decrease by 10% – 50%, while one product grows in both quantity and revenue.
Mobile World Investment Corporation (MWG) has recently announced its 2023 business results. According to the report, the company’s consolidated revenue reached over 118 trillion Vietnamese dong, equivalent to 89% of the revenue in 2022.
Vietnam’s Irresistible ‘Specialty’ That China Desperately Wants to Revive: Highly Popular from the US to Asia, Bringing in Millions of Dollars
Vietnam is one of the largest exporting countries in the world, along with China and the Philippines.
