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Vietnam is becoming an attractive startup valley
In 2021, investment capital in start-ups hit a record level of 1.35 billion USD, making Vietnam the most attractive startup valley in the region.
According to the latest data from the Department of Market Development and Sci-tech Enterprises (Ministry of Science and Technology), investment capital poured into start-ups in Vietnam grew dramatically in 2021, reaching more than 1.35 billion USD.
Ms. Le Hoang Uyen Vy, Director of Do Investment Fund, said Vietnam has the advantage of a population of nearly 100 million people, a young population structure, and a large emerging middle class. Besides, the number of Internet users in Vietnam is nearly 70 million, and the mobile usage rate is about 70% of the population. That is why Vietnam attracts a lot of venture capital.
Mr. Tim Evans, General Director of HSBC Vietnam, said in recent years, Vietnam has emerged as a startup hub, nearly catching up with countries like Indonesia and Singapore. With a young intellectual population, high Internet coverage and smartphone usage, and the support of the Government, Vietnam will continue to maintain its position as an attractive destination for both investors and technology companies.
New startup valley
Golden Gate Venture said that Vietnam is a “rising star” of Southeast Asia and will become the country with the third largest startup ecosystem in the region by 2022. “Along with the development of the startup ecosystem, Vietnam is considered one of the most attractive destinations for venture capital funds in Southeast Asia”, the Southeast Asia Ecosystem 2.0 report of Golden Gate Ventures said.
Mr. Phan Minh Tam, Chairman of STI Holdings, said that capital flows will increase in 2022, but investors will be choosier.
According to Pham Hong Quat, Director of the Department of Market Development and Sci-tech Enterprises, many domestic and foreign investors are interested in N2TP (Layer 2 Tunneling Protocol) in the field of Medtech, GIMO in the field of Fintech invested by BK Fund, and Propzy in Proptech invested by FEBE Ventures. Besides, logistics is also an interest of investors.
In 2021, the world witnessed the rise of Vietnam as a pioneer in blockchain game development and Metaverse (virtual universe) movement. In particular, the rise of Axie Infinity, My DeFi Pet, Faraland, MeebMaster, Theta Arena, Sipher, HeroFi… has created a strong inspiration for Vietnamese businesses and start-ups. In fact, a series of blockchain game projects have attracted hundreds of millions of US dollars in investment like Sky Mavis, but this field has not been recognized by the State and has no clear legal corridor.
Large investment funds believe that 2022 will be the explosive year of the Metaverse wave. Vietnam will be the new capital for this wave.
Citing the success of Axie Infinity, Mr. Dao Quang Binh, Head of Market Development Department of TECHFEST 2021, said that technology is changing much faster than policy. Management agencies and businesses need to cooperate to promote investment and development activities in this field. This will help avoid waste of resources, when many innovative enterprises related to new technologies of Vietnam have had to go to other countries to start a business.
Nguyen Dinh Thang, Chairman of the Vietnam Digital Startup Club (VDI), said that AI, Big Data, 5G, IoT and automation are considered new technology trends this year. Covid-19 is seen as a test, but also a push to accelerate the application of technology.
During the pandemic, the wave of investment in innovation and startup in the world and in Vietnam is still booming. To seize the opportunity to promote faster and stronger technology investment, Vietnam needs to soon complete the legal foundation to encourage investment, construction, and connection of domestic and international resources.
Le Ha
Source: https://vietnamnet.vn/en/feature/vietnam-is-becoming-an-attractive-startup-area-820613.html