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Vietnam becomes one of world’s hottest startup hubs
The IBT backed up its statement referring to local startups’ recent achievements, including winning a prestigious entrepreneur competition against the rest of the globe.In the last few years, Vietnam has transitioned to one of the most dynamic economies in Southeast Asia. In fact, it is one of the fastest growing economies in the continent. In a study conducted by Pew Research, 94% believe the next generation of Vietnamese will have better financial stability than their parents.
This optimistic economic outlook is reflected in the growing number of locals and immigrants that venture into business on its shores. The country with a population north of 95 million is seeing a surge in tech companies taking advantage of its growing yet unique startup culture.
Recently, Vietnam-based Abivin has won the 2019 Startup World Cup. The AI logistics platform beat hundreds of other entrepreneurs around the world who pitched in their ideas and vied for the US$1 million investment prize.
Abivin, who also won the regional competition in Vietnam, bested 12 other finalists from Canada, the USA, Japan, Australia, Finland and more. The regional competition was staged in 40 countries before finalists were chosen.
“We congratulate the Abivin team for their tremendous success at the Startup World Cup 2019 event. The results this year proved one more time that innovation has no boundary,” shared Anis Uzzaman, General Partner at Pegasus Tech Ventures and Chairman of Startup World Cup.
“A successful startup can come from anywhere in the world and still compete at the global level. This sets the right example for all startups from every corner of the world and encourages them to take the highest challenges.”
Large funds committed to startup community
At the Vietnam Venture Summit 2019 held on June 10 with the participation of global venture capital firms including Softbank Vision Fund, Sequoia, SK, Temasek, Insignia, Golden Gate Venture, among others, local and foreign investment funds committed to invest VND10 trillion (US$425 million) in Vietnamese startups over the next three years.
In 2018, startups in Vietnam attracted US$889 million in funding from 92 deals, nearly triple the value recorded in 2017 at US$291 million for the same number of deals, according to Topica Founder Institute (TFI), a Hanoi-based startup accelerator program.
In the next three years, start-ups in Vietnam are expected to receive large funding in Series A worth US$205 million, US$320 million and US$440 million every year.
According to the Ministry of Planning and Investment, from 400 startups in 2012, the number has been rising steadily to 1,800 in 2015, and later reached over 3,000 in the 2017 – 2018 period.
Vietnam’s startups ecosystem has been developing with over 40 venture capitals, a two-fold increase against 2015, including those from Vietnam’s leading corporations such as FPT, Viettel, Vingroup, CMC, among others.