The VPCA’s founding partners. Among them, Le Hoang Uyen Vy (center), co-founder of Do Ventures, serves as VPCA’s Chair. Photo: doventures.vc |
The VPCA alliance was established yesterday (September 12) by five partners from investment funds in Asia, including Golden Gate Ventures (GGV), Monk’s Hill Ventures (MHV), Mekong Capital, Do Ventures, and Ascend Vietnam Ventures (AVV). GGV and MHV are based in Singapore, while the other three funds are headquartered in Ho Chi Minh City. Le Hoang Uyen Vy, co-founder of Do Ventures, assumes the role of VPCA’s Chair.
Currently, VPCA comprises 40 domestic and international investment fund members, such as Ascend Vietnam Ventures, Mekong Capital, Vertex Ventures (India), Eurazeo (France), Open Space Ventures (Singapore), and Ethos Fund (USA). The alliance aims to expand its membership to 100 by the end of this year.
Promoting Venture Capital and Private Equity Investment
According to VPCA, the alliance’s objective is to channel $35 billion in private investment into Vietnam over the next decade to boost economic growth, business development, and enhance Vietnam’s position in the global investment landscape.
This investment will significantly enhance Vietnam’s venture capital (VC) and private equity (PE) landscape by promoting best practices in the field.
The alliance assesses that Vietnam’s dynamic economic growth and vibrant startup ecosystem have made it a significant destination for VC and PE investments. However, there is a pressing need for structured capital deployment, improved industry expertise, and efficient support mechanisms in the country.
Binh Tran, AAV co-founder and VPCA Vice Chair, shared that while investment opportunities in Vietnam are abundant, they lag far behind advanced regions like North America, which accounted for nearly half of the global private capital raised in 2023. The alliance will address these challenges by providing a platform that connects investors, industry partners, and entrepreneurs with a shared vision of growth and innovation.
VPCA’s four pillars of operation include building a thriving community, leading with deep insights, providing essential support services, and fostering VC and PE investment expertise. Members of the alliance will benefit from legal and tax advisory, guidance on accounting and auditing standards, and investment connections.
The alliance will offer valuable thought leadership through publications, data analysis, legal documents, and industry reports. Additionally, VPCA will conduct training, thematic workshops, knowledge-sharing forums, and events to connect investors with startups. It will also advocate and work with the Vietnamese government on policies that support the investment ecosystem.
VPCA is committed to creating a comprehensive ecosystem that fosters progress and tangible benefits for investment and business innovation. To achieve this, VPCA will initiate exclusive events, strategic summits, and industry forums.
The purpose is to facilitate investments in various sectors, from agriculture to education and healthcare in Vietnam, according to Vinnie Lauria, GGV founding partner and VPCA board member.
“Vietnam is at a pivotal moment, with foreign VC and PE funds increasingly seeking investment opportunities here. Meanwhile, the Vietnamese government is implementing supportive policies to foster a thriving business environment,” said Le Hoang Uyen Vy, VPCA Chair and Do Ventures co-founder.
She emphasized that VPCA is dedicated to promoting and sustaining this momentum, ensuring that strategic capital is allocated efficiently to support innovation, growth, and sustainable economic development in Vietnam.
Vietnam’s Robust Growth Attracts Investors
It is unclear how VPCA arrived at the figure of $35 billion in projected investments in Vietnam over the next decade. However, many investors recognize Vietnam’s potential in the context of US-China tensions, which are driving businesses to relocate their factories from the world’s second-largest economy and target new markets for growth.
According to a joint report by Google, Temasek Holdings, and Bain & Co., Vietnam’s digital economy is expected to exceed $90 billion by 2030, triple the $30 billion recorded last year.
Kobe Ge, Head of China Capital Markets at the New York Stock Exchange, stated that Vietnam is increasingly attracting global investors due to its robust economic growth, favorable demographics, and the government’s commitment to supporting innovation through progressive policies.
“Vietnam is a red-hot market. The impetus for forming VPCA stems from significant developments in Vietnam, including rising wages, GDP, foreign direct investment (FDI), and exports, along with the government’s innovation programs and rapid infrastructure development,” remarked Vinnie Lauria of GGV.
While Vietnamese startups have flourished in recent years, similar to much of Southeast Asia, the country’s tech sector has struggled to attract capital since the COVID-19 pandemic.
According to Google’s report, in 2021, Vietnamese tech startups raised a record $2.6 billion through 233 deals, up from $700 million the previous year.
However, last year, total investment in Vietnamese tech startups declined by 17%, reaching $529 million, ranking third among Southeast Asian countries, according to a report by Do Ventures and the National Innovation Center of Vietnam.
Le Linh (According to Bloomberg, TechNode)
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