(MPI) - The National Innovation Centre (NIC) and Golden Gate Ventures jointly organized a workshop themed “Vietnam Perspective in Southeast Asia” and signed a cooperation agreement to strengthen long-term relationship and support the development of the startup and innovation ecosystem in Vietnam on May 30.
The signing of cooperation agreement. Photo: MPI
With Singapore and Indonesia, Vietnam is one of the three countries forming Southeast Asia's Startup Golden Triangle, according to the venture capital fund Golden Gate Ventures.
With this deal, Golden Gate Ventures will increase investment in the market, promote exchanges, develop new ideas and innovations, and act as a catalyst to support Vietnam’s startups in building a position in the region.
Currently, Golden Gate Ventures has established representative offices in Singapore, Vietnam and Indonesia, which are considered as the Startup Golden Triangle in Southeast Asia.
Thanks to a decade of outstanding growth, the global investor community is paying more attention to Southeast Asia. Vietnam has become the new pearl of the region since rising to the top of the rankings - along with the leading countries in the region such as Singapore and Indonesia - with a record high investment capital of 1.4 billion USD in 2021 - 1.6 times higher than the previous record of 874 million USD in 2019.
NIC Director Vu Quoc Huy said that in the first four months of 2022, the number of newly-established enterprises in Vietnam increased by 12.3 percent over the same period last year and by 31.9 percent compared the previous two years.
At the panel discussion. Photo: MPI
Along with the positive growth momentum of foreign investment, this outcome is a clear recognition of Vietnam’s potential in the startup ecosystem and the investments into innovation and startups are expected to double in the next three years.
Vietnam is projected to become an important driving force for the Asia market over the next decade as an additional 36 million people join the consumer class. Vietnam also has the largest middle-class population in Southeast Asia, accounting for about 40 percent of the total population and 04 times higher than in 2000. By 2030, this number is expected to hit 75 percent.
A young and high-educated workforce is also attractive in the Vietnamese market. Currently, 70 percent of its 98 million people are under the age of 35 and the literacy rate accounts for over 95 percent of the total population.
The third factor contributing to Vietnam’s potential is the strong increase in digital demand after the pandemic. Up to the first half of 2021, the market added 8 million new digital users, 55 percent of which were from non-metropolitan areas.
Vinnie Lauria, founder of Golden Gate Ventures stated that Southeast Asia is always a region with great potential, but expanding the business model is a big challenge because of the uniqueness of each market. Our research on the region’s largest unicorns confirms that the combination of the unique strengths of Singapore, Indonesia and Vietnam could accelerate growth and boost innovation.
Among health technology, financial technology and supply chain analytics continue to be essential sectors in the “Startup Golden Triangle”, video games and D2C (Direct to Customer) are also anticipated to grow./.
Ministry of Planning and Investment