Vietnam's Startups Maintain Stronghold in Southeast Asia's Investment Landscape

Vietnam has cemented its role as a leading hub for startup investment in Southeast Asia, securing $529 million in funding in 2023.

According to the 2024 Technology and Innovation Investment Report, this places Vietnam as the third-largest investment destination in the region. Although this figure reflects a 17% decline from the previous year, it stands out against a global venture capital drop of 35%. The total number of deals also saw a modest decrease of 9%, bringing the count to 122, yet Vietnam's investment appeal remains robust.

The Vietnam Innovation Forum 2024 in Ho Chi Minh City showcased Singapore as the leading investor in Vietnamese startups, with local investors also playing a significant role. Notably, the healthcare sector experienced a remarkable 391% increase in funding, while the education sector saw a substantial 107% year-on-year rise.

Despite global economic challenges, nearly 100 investment funds supported Vietnamese startups in 2023, underscoring the country's growing attractiveness as an investment destination. Vietnam’s digital economy is projected to expand 11-fold by 2030, positioning it to leverage artificial intelligence (AI) to drive innovation and growth.Research by McKinsey & Company estimates that Generative AI could boost global company productivity by between $2.6 trillion and $4.4 trillion annually.

Vietnam has already made significant strides in AI development, with advancements in application, research, and human resources. The government’s National Strategy on Research, Development, and Application of Artificial Intelligence, extending to 2030, further highlights the country’s commitment to integrating AI.

With favorable policies and a strong emphasis on AI, Vietnam continues to attract global investments, fostering technological and economic progress. The country’s rise to 46th place in the Global Innovation Index in 2023 further solidifies its status as a leading innovator among middle-income nations.

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Source: Vietnam Investment Review