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BUSINESS REPORT

Interest piqued

Foreign investors have been eyeing high-tech projects and startups
in Vietnam as the country looks to ‘go green’.

By HOANG AN & THUY DIEU

reen and clean high-technology Figures from Do Ventures and the attention to unit economics (revenues
plays a pivotal role within Viet- Vietnam National Innovation Center and costs per specific unit) than rapid
G nam’s ongoing green transition (NIC), excluding subsequent additional growth, especially with companies in their
and has caught the attention of a host of venture investment in existing projects, early stages. The fall in both deal numbers
foreign investors. show that transaction numbers are down and capital clearly demonstrates the cau-
significantly in small and medium-sized tion and selectivity being embraced. While
Startups attracting capital deals. The biggest decline, of up to 50 the average value of Pre-A and Series A
Until recently, the past decade saw per cent, has been seen in deals of less rounds continues to rise, the average
strong growth in venture investment in than $500,000. Transactions worth $10- value of Series B rounds in the first nine
Vietnamese startups. From just a few 50 million, however, have seen no signif- months of 2023 is down 44 per cent year-
deals with total capital of some $10 million icant change, which reveals the increasing on-year, revealing the level of impact
in 2013, deal numbers peaked in 2021, presence of “mature” tech companies in from tightening capital markets.
with 165 and capital of over $1.4 billion. Vietnam’s startup ecosystem. In a relatively young market like Viet-
Venture investment in Vietnam has, According to Ms. Le Hoang Uyen Vy, nam, most industries present opportuni-
however, been hit by the global economic Co-founder and CEO of Do Ventures, ties for startups to grow and attract invest-
headwinds since 2021. Deal value fell 13 fundraising has become increasingly prob- ment. Investment funds, particularly for-
per cent year-on-year in the first nine lematic amid the continued challenges eign funds, have, however, identified their
months of 2023, to a combined $427 mil- as investors adopt a more cautious own preferences and priorities in choosing
lion, with deals tumbling 40 per cent to approach in decision-making. When eval- sectors for investment, according to Ms.
their lowest level since 2018, at just 56. uating a company, investors pay greater Nguyen Ngoc Huong Thao from the AVV

16 Vietnam Economic Times April 2024 en.vneconomy.vn