Vietnam ranks third in Southeast Asia in startup investment attraction

In 2023, Vietnamese startups received a total investment capital of US$529 million.

Singapore led in both the number of deals and total investment capital for startups, followed by Indonesia.

That is notable information in the 2024 Technology and Innovation Investment Report released at the Vietnam Innovation Forum 2024.

This forum was organised in Ho Chi Minh City on April 26 by the National Innovation Centre (NIC) and Do Ventures Investment Fund under the sponsorship of the Ministry of Planning and Investment.

This report also said that in 2023, Vietnamese startups' total investment capital of US$529 million dropped by 17% compared to the previous year.

Meanwhile, Vietnam's number of deals involving startups slightly decreased by 9% to 122 deals.

This decline shows that the technology investment landscape in Vietnam continues to be affected by changes in the global economy.

However, this reduction rate was slighter than the decrease of 35% to US$345 billion in total global venture capital investment, showing that the Vietnam market is still an attractive destination in the capital market.

In 2023, nearly 100 funds poured capital into Vietnamese startups, of which the most active investors came from Singapore, followed by Vietnamese investors.

Of which, the healthcare sector received the highest investment, skyrocketing 391% over the previous year. The education sector also received a high amount of capital, up 107% year on year.

Speaking at the forum, Deputy Minister of Planning and Investment Tran Duy Dong noted that as a pioneer country in the field of innovation, Vietnam commits to upgrading the national innovation ecosystem, attracting investment and talent.

With preferential policy mechanisms and simplified regulations, Vietnam will accompany startups, corporations, organisations and experts to develop science and technology, promote innovation, contributing to the country's economic growth.

Vietnam has moved up two places in the Global Innovation Index (GII) in 2023, ranking 46th out of 132 countries and territories, according to a GII report released by the World Intellectual Property Organisation (WIPO).

Vietnam is one of seven middle-income countries having made the most progress in innovation over the past decade.

This positive results are owing to the continuous efforts of organisations, individuals and businesses in the work of innovation, Dong said.

Source: VOV