VN technological startups still see bright future despite investment decrease

SGGP

The total investment in domestic technological startup enterprises in 2020 reached US$451 million, a fall of 48 percent compared to 2019, as cited in the report by Vietnam National Innovation Center (NIC) and Do Venture. Despite that fact, the country is still considered an attractive destination for international investors.

Vietnamese technological startups still see bright future despite investment decrease ảnh 1 Over a half of these investments were from domestic funds


The ‘Vietnam Innovation and Technology Investment Report 2020’ by NIC (member of the Ministry of Planning and Investment) and Do Venture reveals that in spite of witnessing a decline of 48 percent in investment amount compared to 2019, Vietnamese technological startups only experienced a slight fall of 17 percent in the quantity of investors.

Particularly, in the last half of 2020, there were totally 60 investment contracts, the same as that time in 2019. This signaled a recovery from the second quarter of 2020 after a considerable decline in the first quarter due to the unexpected hit of Covid-19.

More remarkably, over a half of these investments were from domestic funds, showing the important role of national investors in boosting the growth of startups in their initial stage during this harsh time.

Payment and retail continued to be the sectors receiving the most significant investment amounts. Certain fields such as HR Technology, Property Technology maintained their attractiveness while the fields like Education technology, Medical technology, and Software-as-a-Service (SaaS) experienced an impressive increase thanks to behavior shifting of both businesses individuals during the Covid-19 pandemic.

The report stressed that Vietnam is still considered an attractive destination for domestic and international investors alike, especially those from the Republic of Korea and Singapore.

By Anh Phuong – Translated by Thanh Tam

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