Investment funds still eyeing Vietnamese startups

Despite Covid-19 continuing to make its presence felt, large investment funds are still actively looking for potential startups and have put their faith in the Vietnamese market.

2021 has marked a new wave of investment from major investment funds into startups, such as VNG, MoMo, Fundiin, and Vietcetera. According to Ms. Le Hoang Uyen Vy, CEO of Do Ventures, companies and startups that use Covid-19 as an opportunity to push ahead with digital transformation will receive the most attention from investors, especially over the closing months of the year.

Along with the development of a startup ecosystem, Vietnam has been evaluated as one of the most attractive destinations in Southeast Asia for venture capital funds as well as large investors seeking investment opportunities. “Vietnam has been a dynamic market for KKR, where we have invested more than $1 billion in the country’s top companies,” said Mr. Louis Casey, Head of KKR’s growth technology in Southeast Asia.

However, there is still a lack of a strong connection between investors and startups as investors are still expecting a stronger boom from startups, according to Ms. Hoang Thi Kim Dung from Japan’s Genesia Ventures. Building a strong startup ecosystem and becoming a solid foundation of the Vietnamese economy will take a decade and require investors with enthusiasm and also patience.

In order for Vietnam’s startup and innovation ecosystem to develop further, she noted that the country will need more time to gradually accumulate knowledge and development experience to create quality startups and attract more investment capital.