Vietnam emerges as attractive destination for startups

Fields drawing the highest amount of capital include fintech, game, education, health care and e-commerce, according to the National Agency for Technology Entrepreneurship and Commercialisation Development under the Ministry of Science and Technology.

To date, Vietnam has been home to about 3,800 startups, with two unicorns - tech giant VNG Corporation and VNLife Corporation, along with 11 others each valued at more than US$100 million such as Momo e-wallet and Tiki online marketplace.

Of note, Tiki received US$258 million in funding, VNLife US$250 million, Sky Mavis US$152 million and Momo US$100 million.

Some startups like Loship, Citics and Sky Mavis successfully called for investment twice in the year, motivating others amid the pandemic.

The Vietnamese market is favoured by 208 venture capital firms, of them nearly 40 are domestic ones.

Major firms are VSV Capital - Vietnam Silicon Valley, Mekong Capital, 500 Start-up Vietnam, Vietnam Investment Group, IDG Ventures Vietnam, Nextrans, Do Ventures and Genesia Ventures.

Chief Executive Officer of Do Ventures Le Hoang Uyen Vy said Vietnam is posting positive economic achievements and boasting a population of nearly 100 million, with a young and fast-growing middle class population.

In addition, the country has nearly 70 million Internet users and mobile phone subscribers hit 70% of the population, which are favourable for the country in attracting venture capital.

CEO of HSBC Vietnam Tim Evans said Vietnam has emerged as a startup hub and nearly caught up with other regional countries like Indonesia and Singapore.

Boasting a young population, high Internet penetration and smartphone users rates, together with support from the Government, Vietnam is likely to uphold its position as an attractive destination for both investors and tech companies in the coming time, he added.