Investing in Startups in Viet Nam: An Ecosystem Perspective
1. INVESTING IN STARTUPS IN VIET NAM
AN ECOSYSTEM PERSPECTIVE
Trần Trí Dũng * tran@jeaustin.com
Da Nang, 29 September 2023
2.
3. Viet Nam
Entrepreneurial Ecosystem of Innovation
Started in 2015
Dynamic in 2021-23
There is always innovation in any business.
There is always an ecosystem of innovation.
How entrepreneurial is the ecosystem?
Support programs and services: (a) by
domain and industry, (b) by stages of
development, and (c) on demand
Local ecosystem: Now and Here
4. Quantity that matters
Startups: 3,000+
Entrepreneurship Support Organization: 1,400
VCs: 100+:
o Increasing numbers of domestic VCs (20+)
Incubators: 69 (43 in universities)
Accelerators: 28
Coworking spaces: ~200
Networks of mentors and angel investors:
o Micro VCs
Shifting from quantity to quality
As of summer 2022
5.
6.
7. Product Readiness
Paul Kallmes @ Datbike
“The quality of the design and manufacturing that I
encountered in Vietnam really stands out. From smart
robotic grippers to electric motorcycles to PCR-type
medical devices, there is clearly a substantial amount of
design and manufacturing capability, much of it done on
a comparatively shoestring budget. With proper
resourcing and capital investment, there is little doubt
that this quality can be replicated in any number of
additional ventures.
The sectors receiving the most focus today – fintech,
ecommerce, edtech, medical devices –clearly have the
potential to find markets well beyond Vietnam’s borders.
Investors and corporates alike should add Vietnam to
their opportunity radar as soon as they can.”
8. Product Readiness
“This ecosystem stands out when it
comes to complexity. In contrast to
some of the ecosystems I've previously
encountered, where good salespeople
were present but lacked genuinely
innovative products or services,
Vietnam's startup landscape is different.
Here, we find startups with
groundbreaking innovations, making
them prime candidates for global
expansion. I'm excited about the
potential for these startups to scale
worldwide, given that they have already
conquered the most challenging
aspect—the complexity of their
offerings.”
Martin Kenneth Lopez
CEO, Tekon Labs
10. Ha Noi Capital City
• Population: 8 – 10 mln
• GDP: $38 bln
• GDP per capita: $4000
• Pace of Biz: Low-Moderate
• Advantage: Pool of talents, strong universities;
product-focused
• Satellites:
• Hai Phong
• Bac Ninh
• Thai Nguyen
• Central Gov:
• MOST: 844
• MPI: NIC
• MoIC
• City Gov: New startup support program
• CoWorking Spaces: Toong, Up, many others
• Incubators & Accelerators:
• State-run & university-based
• ThinkZone
• Local Investors: conservative
11. Da Nang – the Hub of
Central Region
• Population: 1.5-2 mln
• GDP: $4.3 bln
• GDP per capita: $3,865
• Pace of Biz: Moderate; direct
• Advantage: Hidden charms
• Quality of life
• Relatively low cost of living
• Expat community; tech nomad
• Outward positioning
• Satellites:
• Hue
• Quang Nam
• Quang Ngai
• Central Highland
• City Gov: Regional Hub of Innovation
• CoWorking Spaces: Surf Space, and others
• Incubators & Accelerators:
• DNES
• Song Han Incubator
• Viet Nam Innovation Hub in Da Nang
• Local Investors: still early
“We want to do good things for our city”
12. Ho Chi Minh city – the
Engine of Economic Growth
• Population: 13+ mln
• GDP: $58 bln
• GDP per capita: $6,430
• Pace of Biz: Fast; risk taking
• Advantage: economic hub; market-oriented
• Satellites:
• Binh Duong
• Dong Nai
• City Gov: Startup Exchange, Startup Runway Programs
• Co-working Spaces: Up, Toong, Dreamplex, Circo, others
• Incubators & Accelerators:
• State-run & university-based: SiHub, SHTP IC, ITP
• BSSC, Zone Startup Viet Nam, IPB
• Local Investors: active
1- Startup: innovative + high growth. Still need to improve awareness more sophisticated
2- Incubators + Accelerators: public, PPP, private. domain focused: fintech, tourism, agriculture, tech-startups
3- Coworking spaces: mushrooming, real estate business
4- VCs + Investment Funds: active, more money is coming to Vietnam. More Vietnamese VCs, pre SeriesA (<$1M). Legal challenge is OK. Deal flow. Capital winter
5- University-based program: early stage
6- Mentors: many and more should be able to access to them.
7- Angel investors: tech focused, successful founders; traditional investors is learning about angel investing. More micro VCs than angels
Follow up story. Father of this summit.
One thing is very clear: NOW is the time tobe in Vietnam in whatever capacityyou can manage. Early-and growth-stage investors; start-up founders and co-founders; outsource of design and manufacturing;corporate VC and partnerships; educators and trainers; and more.
Address investor concerns: legal (deal structure), deal sourcing, post-investment monitoring, management, and Value Building