Thirty-three investment funds that attended the Vietnam Venture Summit 2020 (VVS) with the theme "Going Digital" on November 25 have committed to pour US$815 million into innovation start-ups in Vietnam in the 2021-2025 period.

The signing ceremony was held at the Vietnam Venture Summit 2020 on November 25. Photo: Khanh Khanh

Some typical investment funds are VinaCapital Ventures, 500 Startups, AlphaJWC, BeeNext, CyberAgent Capital, Do Ventures, FEBE Ventures, Genesia Ventures, Monk’s Hill Ventures, Insignia Ventures, Patamar Capital, Smilegate, Vietnam Investment Group, and Viet Capital Ventures. 

Speaking at the Summit, Deputy Prime Minister Vu Duc Dam said that if last year there was a sudden increase in the capital of investment funds poured into new Vietnamese companies, with $800 million, the investment capital is just US$200-plus million by 2020.

“However, the startup community of Vietnam has some notable highlights such as many startups being at the forefront together with foreign enterprises in providing solutions in transportation services, e-commerce, and creating co-working spaces,” Deputy PM Dam affirmed. 

Mr. Nguyen Chi Dung, minister of Planning and Investment, pointed out that the Covid-19 pandemic has undermined creative start-up investment in 2020 and revealed that many startups have shortcomings, including those faring well in the international market. 

In the long term, Mr. Dung stated that Vietnam is determined to implement innovation, reform and development policies, proactively and actively restructure the economy to improve the productivity, quality, efficiency and competitiveness of the economy.

"Considering innovation and creativity as an important driving force and the key to rapid and sustainable growth," Mr. Dung added.

“The Ministry of Planning and Investgment is presiding over building a draft of the socio-economic development strategy for the 2021-2030 period, which identifies two important pillars to create a breakthrough which are science and technology; innovation and human development,” the minister said.

The summit included activities designed to connect innovative businesses. Through Startup-Pitching and Business-Matching, potential startups will connect with more than 100 investment funds to present their ideas. 

An overview of the Vietnam Venture Summit 2020. Photo: Khanh Khanh

The summit had the attendance of about 800-1,000 delegates, leaders from several ministries and branches, nearly 50 international and domestic speakers, leaders of technology groups, investors, startups both from home and abroad, as well as representatives of institutions and universities across the country. 

VVS 2020 has a significant objective which is to motivate the development of digital enterprises, as well as to find solutions and opportunities for Vietnam’s innovation ecosystem to integrate into the global market.

It creates opportunities to bridge investors with startups and innovators who have unique and potential ideas. Through the summit, with the support of ministries, key industry players, domestic and foreign digital experts, Vietnamese enterprises discussed the way forward to drive innovation in the country and work collaboratively to achieve success.

Last year’s summit gathered 18 domestic and international investment funds who pledged investment worth of US$425 million in driving startups growth and innovation in Vietnam in 2019-2021. Until the beginning of this year, over US$220 million, which equals to 50% of the total amount pledged, has been disbursed.

Vietnam is a destination for international investors in both FDI and innovative startup. In 2019, investment in innovative startups in Vietnam increased significantly compared to 2018. And the growth potential of Vietnamese innovative startups remains positive. 

A new report by McKinsey & Company finds that Vietnam could capture US$100 billion by 2025 through the formation of 12 large digital ecosystems across retail and institutional services. These digital ecosystems constitute interconnected services from different industries that enable automation on a large scale and integrate purchasing pathways, giving customers access to a variety of products and services on a single platform.