Investment funds pour more money into Vietnamese startups

A record of over US$1.3 billion was poured into Vietnamese startups in 2021 despite the complicated developments of the COVID-19 pandemic, helping the country rank third in the group of the most dynamic innovative startup ecosystems in Southeast Asia, only after Indonesia and Singapore.

Most of the investment capital has been pumped into startups in the fields of FinTech, game, education, health care, and e-commerce.

Innovative ideas to respond to the pandemic and support the Government's prevention and control initiatives have shown the dynamic adaptation of Vietnamese startups.

Investment funds have placed their trust on many startups with outstanding competence and, as a result, so many big deals have been signed, contributing to making Vietnam’s startup ecosystem more vibrant.

VN Life – the firm that owns the VNPay payment tool and VNPay QR cashless payment systems, successfully raised over US$250 million. Meanwhile, Tiki raised US$258 million, and E-wallet MoMo also reported the successful completion of its fundraising round with US$200 million.

Due to the impact of the health crisis, investment in technology startups halved compared to 2019, reaching only US$874 million.

However, Vietnam has been seen as a potential startup market as investment funds still continue to pour their capital in.

According to Le Hoang Uyen Vy, Co-Founder and CEO of Do Ventures Fund, this is an opportunity for Vietnam to become a new technology centre of the world.

New-generation startups soon understand that it is necessary to expand their thinking, operations and networks globally to reach sustainable development in the future, Vy said.