Vietnam tops the list of destinations for venture investors for the next 12 months.

The Covid-19 pandemic has disrupted investment flow into Vietnam’s startups, but for venture funds, Vietnam is still considered a priority market in Southeast Asia in 2021.

A series of startups have stopped operation within a short period. Will startups still have opportunities to attract capital from investors?

The Vietnamese finance market has seen many investment deals by foreign investors who have poured money into startups, showing the attractiveness of the new industry.

South Korea, not the US or Singapore, is the market where many Vietnamese startups will call for capital, according to Pham Ngoc Huy from Vietnam Silicon Valley.

A series of commercial banks, including the big four, are planning to issue shares to foreign investors.

VietNamNet Bridge - Consultants say that even startups with high capability and good business ideas are finding it difficult to call for investment.

VietNamNet Bridge - More and more technology firms are receiving investment from foreign venture funds, which indicates the maturing of the Vietnamese technology community.

When The KAfe had to shut down, analysts said this should be seen as a warning for Vietnamese startups in the coffee cafe market. When Gloria Jean’s Coffee left, they said the same thing. 

Vietnamese startups often become a foreign-invested enterprise (FIE) after successfully raising funds from foreign investors. Coc Coc, Vntrip, Huy Vietnam, The KAfe and Wrap & Roll are just a few of them.

VietNamNet Bridge - About 20 foreign venture funds exist in Vietnam, but they have only representative offices and have yet to set up funds.

VietNamNet Bridge - More Vietnamese startups have received huge investments from foreign investors in recent months.

VietNamNet Bridge - Analysts warned months ago that venture capital pumped into technology startups would decrease as a result of the global recession. However, they have been proven wrong.

 VietNamNet Bridge – Sixty-seven tech startups in Vietnam got finances from venture funds last year, more than double the number in 2014, according to Topica Founder Institute.

VietNamNet Bridge - More and more Vietnamese businesses who can show the feasibility of their business plans have received venture capital from foreign funds.

VietNamNet Bridge - Vietnamese startups have become more and more attractive to angel investors, seed-funds and series A-funds, both domestic and foreign.

VietNamNet Bridge - Venture funds have been very active in ASEAN countries, but not in Vietnam, despite the need for capital from Vietnamese technology startups.

VietNamNet Bridge - Many venture funds have come to Vietnam in recent years to look for startup projects.

 VietNamNet Bridge –  Capital shortage is no longer a problem for many technology startups as many venture funds are increasingly pouring money into them.