Vietnam attracts $400 million in venture capital as tech startups surge

THE HANOI TIMES — Vietnam now hosts more than 4,000 technology startups and drew nearly US$400 million in venture capital in 2024, the Ministry of Science and Technology reported during Techfest Vietnam 2025, the country’s largest tech exhibition.

The figures, released in the Vietnam Startup Ecosystem Report 2025 on December 12, underline the rapid growth of Vietnam’s innovation ecosystem and its rising appeal to global investors.

The report identifies three sectors with the strongest growth momentum. Digital transformation led the market, drawing $84 million in investment, up 562% from the previous year.

High-tech agriculture followed with $74 million, nine times higher than in 2023, while artificial intelligence (AI) attracted $80 million, an eightfold increase. In contrast, investment in fintech dropped 61% as the market showed signs of saturation.

Luong Van Thuong, head of the Innovation Startup Division under the National Agency for Technology Entrepreneurship and Commercialization Development, said the data confirms Vietnam’s rising profile as an emerging technology investment destination in Southeast Asia.

He said Vietnam aims to create three to four new unicorns by 2030 and will focus on 11 strategic technologies. Among them, AI, semiconductors and green technology rank as top priorities.

Vietnam’s startup ecosystem has expanded quickly, with more than 4,000 startups and two unicorns now operating nationwide.

To describe the outlook for 2025, Thuong cited the “5P” framework: policy, progress, capital, planet and people.

In this model, policy plays a core role, as authorities continue to improve the legal framework and build a more supportive environment for innovation-driven enterprises.

AI will serve as a major growth engine in 2025. Private investors poured $80 million into AI startups in 2024, eight times more than a year earlier.

By the end of 2025, around 170,000 businesses are expected to have adopted AI technologies, reflecting the rapid spread of digital tools across the economy.

At the same time, Vietnam’s semiconductor sector continues to gain momentum, with more than 50 chip design firms and about 7,000 engineers, double the number recorded three years ago.

Digital infrastructure keeps improving, with 4G coverage reaching 95% nationwide and 5G deployment expanding steadily.

Climate technology is emerging as a key investment theme, driven by Vietnam’s net-zero commitments and plans to launch a carbon credit trading platform in 2026.

The report shows that venture capital has shifted strongly toward climate-tech startups, with investment levels reaching twice the global average share.

Despite these gains, challenges persist. Vietnam ranks 44th worldwide on the Global Innovation Index but places only 70th in human capital.

The report highlights a “brain drain,” with about 65% of Vietnamese tech talent working overseas.

Shortages of research and development staff and experienced mentors continue to slow progress in core technologies. Even so, policies supporting women, students and young entrepreneurs are expected to narrow these gaps over time.

At the local level, startup activities show diversity but remain uneven across regions.

About 68% of support activities cluster in the Southeast, drawing in most resources, while the Central Highlands and northern midlands receive far less attention.

Looking ahead, eight major startup trends will shape Vietnam’s innovation landscape. They include climate technology, the creative economy, age-tech, education technology, plastic innovation, women-led enterprises, electric vehicle startups and overseas Vietnamese startup communities.

Techfest Vietnam 2025, co-organized by the Ministry of Science and Technology and the Hanoi People’s Committee, runs from December 12 to December 14 under the theme “Nationwide Entrepreneurship – A New Growth Driver” at Hoan Kiem Pedestrian Street.

Organizers expect the event to attract about 60,000 participants online and offline, along with 1,200 investment funds and incubators and 1,700 domestic and international startups.