Positive signs of resources for Vietnamese startups
The first Vietnam Venture Summit held in Hanoi recently saw venture capital funds commit millions of USD to Vietnamese startups, illustrating the confidence foreign investors have in the Vietnamese market.
Three years ago it was a dream for a Vietnamese startup to raise 15 million USD. Today startups can expect even bigger investments. Vietnam has about 3,000 startups and 40 venture capital funds, who are expected to sign contracts totaling over 1 billion USD this year.
An annual report by the Topica Founder Institute says domestic start-ups received 890 million USD in 92 deals last year, tripling 2017 and 6 times higher than that 2016. At the Vietnam Venture Summit, multiple Vietnamese and foreign funds pledged fresh capital to startups.
Jeffrey Paine, co-founder and executive partner of Golden Gate Ventures, said that together with Lotte, VinaCap, Line, Insignia, Mirae Asset Global Investments and Naver Asia Development Fund, they have committed a combined 425 million USD for Vietnamese startups over the next three years. Resources for startups will be doubled compared with last year and in the coming years.
Tran Nhat Khanh, Director of VinaCapital Ventures, said it will partner with Mirae Asset, one of the world’s leading asset managers, and Naver, a dominant Internet content service company of the Republic of Korea, to help Vietnamese startups penetrate international markets.
“Partnership with the Republic of Korea’s two leading groups will play a key role in providing capital for businesses that VinaCapital is investing in. We’ll help them expand to overseas markets, particularly Northeast Asia and North America. We are looking for a business to invest 100 million USD or more in the very near future,” Khanh said.
Continuing to adjust policies
Vietnam is improving decisive factors for business success such as infrastructure, financial regulations, resources, investment capital, market and culture. The government has imposed policies to build a favorable ecosystem for innovation.
Deputy Prime Minister Vu Duc Dam said it is important to maintain foreign investors’ interest, continue reforms, and create opportunities for all: “First of all, it’s necessary to continue improving the business environment. Each province and sector should set specific targets to raise their investment and business environment ranking. Secondly, it’s necessary to create breakthroughs in information technology application in all sectors. Thirdly, we need to focus on education and technology.”
Minister of Planning and Investment Nguyen Chi Dung said “We’ll work with the Ministry of Science and Technology and the Ministry of Information and Communications to review mechanisms and policies to create the best possible conditions for startups and venture funds to partner and access resources to contribute to Vietnam’s economic growth.”
Vietnam has seen an increase in foreign investment in startups. Taking full advantage of foreign investment will ensure sustainable economic growth.