Ecosystem Deep Dives #17: Vietnam - A new era
While initially lagging behind local giants Indonesia and Singapore, Vietnam's start-up ecosystem is making its own mark on the region.
A ripe market
With a population of almost 100 million, 70 million internet users, and 60% of the population below 35, Vietnam’s market is ripe for digital disruption. In the past decade, the exponential growth of mobile usage in the country has been a boon for local start-ups. Today, with over 60 million mobile users, Vietnam’s population is prepared to receive the innovations its start-ups are creating.
While historically trailing behind regional giants Indonesia and Singapore, the Vietnamese start-up ecosystem has been making great strides, powered by its population’s desire for digital services. Stable and growing macro-economic indicators make the country’s tech ecosystem attractive to foreign investors, such as Japan’s hyper-active SoftBank or Singapore’s sovereign wealth fund, GIC.
“Vietnam is an emerging startup market with the best growth potential in the region. The country’s GDP is forecast to grow at a rate of 4 per cent in 2021, the highest in Southeast Asia. Foreign inflows into the country are estimated to reach about $20 billion despite the negative impact of the COVID-19 pandemic.” - Vietnam Investment Review
Traditionally viewed as a tech outsourcing hub, Vietnamese tech talent are putting their skills to work by creating disrupting companies in areas such as fintech, e-commerce and proptech to name a few. Recently, some Vietnamese start-ups such as Sky Mavis have been globally competing at the intersection between the blockchain and gaming sector, attracting top-tier Silicon Valley investors such as a16z, Accel and Altos to the country for the first time.