Vietnam Emerges as a Regional Hub for Startups

March 2023

A recent report from KPMG International Ltd and HSBC Holdings Plc has disclosed that the number of startups in Vietnam almost doubled between the start of the Covid-19 pandemic and mid-2022. The growth is supported by some of the biggest investors in the world, such as Sequoia Capital, Warburg Pincus LLC, and Alibaba Group Holding Ltd. Local firms account for 13% of the total venture funding flows into the region in 2021, after Indonesia and Singapore.

Investment is booming in the country. According to a Google, Temasek Holdings Pte., and Bain & Co. analysis, Vietnam attracted a record USD 2.6 billion through 233 private agreements in 2021, up from USD 700 million through 140 deals in 2020. As highlighted by Bloomberg, Vietnam is a highly desirable location for startups, thanks to the competitiveness of its engineers and booming economy.

It has been recently announced that the Vietnamese government aims to transform Ho Chi Minh City into a hub for tech funding and is working to expand its digital economy, given that this sector accounts for 40% of the GDP of the southern metropolis. In February 2023, the government ordered city officials to prioritize foreign investment in high-tech projects while providing other incentives to entice multinational corporations and investors to establish operations in the country and conduct R&D operations.

(Sources: Pingwest, Vietnamnet)

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