Viet Nam joins “golden triangle of startups” in Southeast Asia
VGP - Viet Nam’s advantages in having a strong domestic market and an abundant science and technology human resources have made the country the third pillar of the “golden triangle of startups” in Southeast Asia, together with Indonesia and Singapore.
Lianhe Zaobao newspaper in Hong Kong (China) released an article, quoting the speech by Vietnamese Minister of Plan and Investment Nguyen Chi Dung at a Startup Investment Forum on December 2022 as saying that in recent years, more and more foreign direct investment (FDI) flows have come to Viet Nam's startups.
Viet Nam's innovative startups attracted US$500 million in foreign investment over the first nine months of 2022 and nearly US$2 billion over the recent two years.
In 2021, Vietnamese startups mobilized US$1.4 billion in investment capital, 56 percent higher than the level of US$894 million in 2019.
The Viet Nam National Innovation Centre predicted that Vietnamese startups' capital attraction capacity will maintain an upward trend in 2023.
Thirty-nine investment funds have committed an investment of US$1.5 billion to Viet Nam in the period 2023-2025, raising the total investment for Vietnamese startups to US$5 billion during this period.
The Southeast Asian nation has climbed up 5 places to 54th globally on the Startup Blink's Global Startup Ecosystem Index 2022.
Viet Nam rose from 6th to 5th in Southeast Asia, displacing the Philippines, and is well-positioned to overtake Thailand (4th regionally) in 2023 if this positive momentum continues.
Currently, the majority of investment capital in Vietnamese startups is in the middle and later stages, with an average investment value of US$9.5 million per round.
Only 4 percent of capital is poured into early-stage startups, with an average investment value of US$1.152 million.
