Venture capital up sharply in 2021 and still rising

Despite the market fluctuations caused by Covid-19, venture capital going to Vietnamese startups reached a record high in 2021, totaling $1.4 billion, an event to release the Report on Innovation and Technology Investment in Vietnam from the National Innovation Center (NIC) and Do Ventures on April 21 heard.

Investors made a rapid shift last year towards focusing on industry groups that were not overly affected by the pandemic. As a result, total investment in innovation reached $1.4 billion, far surpassing the record of $874 million posted in 2019 and the $451 million recorded in 2020.

Notably, according to Do Ventures, Vietnam welcomed the appearance of two new technology unicorns in 2021: MoMo and Sky Mavis. “The success of these two companies further affirms Vietnam’s position as an emerging technology hub in the region,” said Ms. Le Hoang Uyen Vy, Managing Director of Do Ventures.

The total number of investment funds operating in Vietnam increased 60 per cent last year. The most active investors were from Singapore, followed by Vietnam and the US. Notably, investment from Japan has gradually become more active after slowing for two years due to Covid-19.
Payments and e-commerce remain the top two industries attracting investment, followed by the online games industry, thanks to the global success of Sky Mavis and its Axie Infinity game.

The three most prominent industries include health, education, and digital transformation in businesses, with growth in 2021 of 1,016 per cent, 526 per cent, and 205 per cent, respectively.

“With the achievements seen in 2021, we can believe that 2022 will be a pivotal year for Vietnam’s innovation ecosystem to see breakthrough developments, opening up many opportunities for the development stage of innovative enterprises and Vietnam’s digital economy,” said Mr. Vu Quoc Huy, Director of the NIC.