HANOI – Vietnam’s internet economy is projected to reach US$43 billion in 2025 and new tech unicorns, which are technology startup companies with a valuation of US$1 billion or more, could appear in the country, according to a report of Do Ventures, a venture fund targeting startups in Vietnam and Southeast Asia.
Do Ventures said that Vietnam was highly valued thanks to the rise of the middle class and the surging number of internet users. Due to the impact of the Covid-19 pandemic, more Vietnamese are opting for online platforms and services, including cashless payment methods.
In 2019, Vietnamese tech startups earned up to US$861 million in capital from 123 investment deals. In the first quarter of 2020, the amount of capital poured into the field totaled US$284 million.
In 2019, the country recorded 109 investors in the technology sector. In the first half of 2020, only a limited number of new investors joined the market, with investments mostly from domestic firms and foreign investors who had worked in Vietnam.
Do Ventures added that the Vietnamese market still remains highly attractive to tech investors. In the next 12 months, 50 investment funds operating in the six strongest economies in Southeast Asia will likely focus their attention on Vietnam and then on Indonesia, targeting the fields of education, healthcare and finance.
Tech investors have chosen Vietnam as their investment destination as they see better opportunities here than in other markets. In addition, they recognize the other favorable conditions such as macro factors, demographics and great growth potential owning to the rapid increase in consumption and undervaluation during the pandemic.
Among the Southeast Asian countries, Vietnam now ranks third in terms of the number of internet users, third in the mobile penetration rate and second by the average speed of mobile internet.
The Do Ventures report also praised Vietnam’s telecom industry as its three major telecom carriers—Viettel, VNPT and MobiFone—have piloted 5G services. The popularity of the internet helped raise the value of the local internet economy to US$12 billion in 2019.
Further, Do Ventures forecast that the online payment market in Vietnam would obtain further growth as the Mobile Money service will be launched in the upcoming time with the participation of various telecom carriers.
By Van Ly