Vietnam startup sector to receive USD 425 million from domestic and foreign funds

Giving the sector a boost but obstacles remain.

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Vietnam startup sector to receive USD 425 million from domestic and foreign funds

Vietnam held its first Vietnam Venture Summit, co-hosted by Vietnam’s ministries of investment and technology and science, and Singapore-based Golden Gate Ventures on June 10. The summit saw 18 domestic and international venture capital firms committing to spend a total of USD 425 million on Vietnamese startups over the course of the next three years, reports VnExpress. 

Some notable deals include Vietnamese fund VinaCapital’s agreement with two South Korean funds to put aside USD 100 million for the country’s startups; the European Chamber of Commerce in Vietnam (EuroCham) pledging  EUR 3 million (USD 3.4 million) from its members; and South Korea’s DTNI’s USD 1.4 million investment in local proptech startup Propzy.

Vietnam’s Ministry of Investment and Planning also signed a Memorandum of Understanding with Golden Gate Ventures to support the growth of Vietnamese startups and another one with SGInnovate to develop deep tech companies in Vietnam,  according to VnExpress.

Various speakers at the summit highlighted how the inflexible local regulatory framework is driving startups abroad. In the same vein, Deputy Prime Minister Vũ Đức Đam called for closer cooperation between governmental entities, local authorities, bigger established companies, and startups to foster a thriving tech sector.

The 18 investors that pledged to invest in Vietnamese startups are Golden Gate Ventures, Access Ventures, Burda Principal Investments, 500 Startups, Jungle Ventures, Monk’s Hill Ventures, NCORE, KK Fund, Patamar Capital, Insignia Ventures, Line Ventures, Alpha JWC, Lotte, Vietnam Silicon Valley, VinaCapital Ventures, Vingroup and ESP Capital.