|39 investment funds commit 1.5 billion USD to innovation start-ups in Vietnam at VVS 2022. (Photo: NIC)
Themed “Shifting Global Capital Flows”, Vietnam Venture Summit 2022 returned after a year of suspension due to COVID-19, bringing together policy-makers, global investors, founders, and corporates across the region, who shared their views on the latest startup and investment trends in the startup ecosystems of Vietnam, Southeast Asia, and the world.
Addressing the event, Minister of Planning and Investment Nguyen Chi Dung said that at Techfest Vietnam 2022, held two weeks ago, Prime Minister Pham Minh Chinh underscored the need to complete institutions, mechanisms, and policies to promote the capital market in a manner consistent with the market mechanism and international practice.
“To meet the requirements, investment funds and innovation enterprises will be important partners of the Government, ministries and sectors to support and contribute ideas to policy making on investment for innovation start-ups, to give Vietnam a business environment attractive to international investors,” said Mr. Dung.
|Minister of Planning and Investment Nguyen Chi Dung speaks at the event. (Photo: NIC)
In 2022, the global investment trend has changed due to geopolitical instability and the possibility of recession in many large economies, making it difficult for startups and investors to foster investment opportunities, according to the forum. As a result, there is a big shift in global capital flows.
Southeast Asia is emerging as an attractive destination for direct investment and venture capital flows, said Vinnie Lauria, co-founder and CEO of Golden Gate Ventures, one of the organizers of VVS 2022.
|Vinnie Lauria, co-founder and CEO of Golden Gate Ventures. (Photo: NIC)
“I think Vietnam’s growth is very fast, especially the tech-market. In fact, Vietnam's tech industry has grown at an annual rate of 20% over the past decade, making it one of the fastest-growing tech markets in the world. So I think in the next ten years the opportunities are limitless, it is growing so fast because of a foundation it has – education, science and technology, long-term planning, and infrastructure for high-tech and manufacturing,” said Vinnie.
Some of the world’s largest tech companies have set up manufacturing here in Vietnam, like Google, Microsoft, Intel, Amazon, and Samsung, he said, noting that this phenomenon will create growth opportunities both for Vietnam as a country and for young entrepreneurs building companies here.
· According to a Crunchbase News analysis, global venture funding for the third quarter of 2022 totaled 81 billion USD, down 90 billion USD (53%) year over year and 40 billion USD (33%) quarter over quarter.
· Startups in Southeast Asia secured 3.72 billion USD in venture capital funding in the third quarter of 2022, down 36.4% year-on-year and 22% from the previous quarter.
· The Southeast Asian market is still considered attractive due to the region's growth rate, expected to remain at 4-5%/year; a large consumer market of 680 million people; wide internet coverage; and total value of the digital economy expected to reach 200 billion USD in 2022, 3 years earlier than expected.