These three markets will rock the next wave of growth in Southeast Asia
On May 30, the National Innovation Center (NIC), the Ministry of Planning and Investment cooperated with Golden Gates Venture Fund to organize a seminar “Vietnam market potential in Southeast Asia”.
Within the framework of the conference, Golden Gate and NIC signed a cooperation agreement, consolidating a long-term cooperation relationship to support the development of the startup and innovation ecosystem in Vietnam.
Under the agreement, the fund will increase investment in the market, promote the exchange and development of new ideas and innovations, and act as a catalyst to support Vietnamese startups. established a position in the region.
“We started planning to set up an office in Vietnam in 2019 when Golden Gate Ventures co-organized the first Vietnam Innovative Startup Investment Fund Forum under the chairmanship of the Ministry of Planning and Investment. aims to accelerate the development and influence of Vietnam in the “golden triangle of start-ups”, said Vinnie Lauria, founder of Golden Gate Ventures.
According to the assessment, Vietnam has become the new pearl of the region. In 2021, Vietnamese startups attracted $1.4 billion, 1.6 times higher than the figure of $874 million in 2019. With a record high investment capital, Vietnam entered the leading group region along with Singapore and Indonesia.
” The inflow of capital coupled with the positive growth of foreign investment indicates a clearer recognition of Vietnam’s potential in the startup ecosystem and that Vietnamese startups are rising to a new level. new high, we expect these investments to double in the next 3 years ”, said Mr. Vu Quoc Huy, Director of NIC.
Although Vietnam has been on the radar of founders and investors over the past decade, the next few years are the time when this market will be noticed thanks to the convergence of the consumer class and the labor force. young, educated workers increase along with the increasing demand for digital technology after the pandemic.” The source of investment capital along with the positive growth momentum of foreign investment shows a clear recognition. More clarity about Vietnam’s potential in the startup ecosystem and how Vietnamese startups are reaching new heights, we expect these investments to double in the next three years,” he said. Vu Quoc Huy, Director of NIC said.
Domestic consumption is forecast to grow at a rate of 20% per year. Vietnam is expected to become an important driving force for Asia’s consumer market over the next decade, with 36 million people added to the consumer class. The middle-class population is believed to be growing the fastest in Southeast Asia and is estimated to account for around 40% of the total population, up from just 10% in 2000. By 2030, this number is estimated to reach as high as 10%. 75%.
According to experts, one of the other attractive points of the Vietnamese market is the young and highly educated workforce, with 70% of the population under 35 out of a total of 98 million people.
The third factor contributing to Vietnam’s potential is the strong increase in digital demand after the pandemic. Studies show that Vietnam has added 8 million new digital consumers, with 55% coming from non-urban areas between the start of the pandemic and the first half of 2021. The transformation of Vietnam’s Internet economy in 2021 is forecast to be 21 billion USD – up 31% thanks to the 53% growth of e-commerce over the same period last year. By 2025, the overall Internet economy could be worth $57, with a compound annual growth rate of 29%.
“Over the next decade, we expect to see Vietnam develop at a rate we have never seen before,” said Ms. Kim Ngoc Thanh Nga, Head of Ecosystem Development at NIC.
Ms. Nga said that Vietnam is in the perfect position with high Internet penetration, a strong domestic market, many founders with innovative ideas that can expand beyond Vietnam, and many more. partners are present in Vietnam to support the development of the startup ecosystem.
“Over the past decade, the Government of Vietnam has invested in many pillar areas – from supporting education to building infrastructure and developing ecosystems. These investments are paying off – This is clearly due to the great interest from investors and Vietnam’s active start-up activity,” added Ms. Nga.