In the past two years, the number of transactions into startups has increased to the highest level in the past five years, reaching 108 investment deals.
This has been released in the Vietnam Open Innovation Landscape Report 2021 by BambuUP under the auspices of the National Startup Support Center under the Ministry of Science and Technology on January 13. The number of investment deals ranging from $500,000 to $3 million has increased 2.58 times compared with 2020.
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Le Hoang Uyen Vy, co-founder and general partner of Do Ventures shared, “The Vietnamese startup ecosystem is at a tipping point and leaves a mark in the region and the world thanks to targeting regional and global markets instead of just the domestic market, launching new products and services with high technology, and enough maturity to become the investors for the next generation of founders.”
The report outlined the startup ecosystem, spanning over 11 prominent areas, such as consumer goods, retail, education, and travel and Tourism. For each of these areas, the report forecast challenges and trends.
For example, fintech would experience an acceleration in the next five years, particularly banks, businesses, and fintech companies pursuing digital-first approaches. The report indicates that 25 per cent of banks in Vietnam will “actively pursue modernisation of digital core platforms”. The major trends in the banking industry would include customer experience as the highest priority, voice-activated technologies, and decentralised finance, among others.
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In mar-tech and sales-tech, technology adoption used to revolve around innovation and experimentation but are now expected at the core of all activities. AI and machine learning are used in many solutions to help optimise and automate marketing in ways humans cannot match.
For agriculture, the report indicates major trends such as smart agriculture, climate change adaptation, e-commerce sales, and increased IT application to ensure food safety and transparency.
When it comes to healthcare, the report states notable trends in medical technology in Vietnam, including digitalised health records, telemedicine, and remote patient monitoring. Healthcare is believed to be the fastest digitally transformed industry.
Opportunities for Vietnamese startups
Nguyen Huong Quynh, CEO of BambuUP shared, “Our mission is to enable everyone and every business to easily update access, and deploy innovation. We will provide innovation, connections, and consultations beyond any limit of geography and time. We absolutely believe that continuous innovation is the only way for businesses to survive and develop. Human knowledge is being doubled every 12 hours. So, ask yourself, are you prompt and fit enough for the future?”
Vu Binh, consul general of Vietnam in Japan’s Fukuoka said, “The Vietnam Open Innovation Landscape 2021 Report has demonstrated initial efforts in building an innovation ecosystem in the country. The report shows the meteoric rise of businesses, both in small and large enterprises. The international context is increasingly favourable for the development of companies that are facilitating the development of open innovation.”
By Nguyen Huong @ VIR