Vietnam has the potential to become a start-up powerhouse thanks to rapid economic expansion and favourable demographics. (Photo: laodongthudo.vn) Hanoi (VNS/VNA) - Vietnamis among the most dynamic startup hubs in the world and well-educated, youngentrepreneurs are expected to improve the country’s position on the global startupmap.
There are no officialstatistics on startups in Vietnam, but according to some regional tech sources,as many as 3,000 are operating in the country, making it the third largest startupecosystem in Asia.
The country jumped 12places to 47th among 127 economies on the World Intellectual PropertyOrganisation’s 2017 Global Innovation Index, its highest ranking in the past 10years. In Southeast Asia, it sits behind only Singapore and Malaysia.
This progress isbelieved to be driven by young entrepreneurs who are tech savvy and welleducated.
About 70 percent of thecountry’s population of more than 90 million is under 35 years old. Thousandsof new young innovators, including Vietnamese talents from overseas, arejoining the startup community every year.
According to the tech platformASEAN Post, more than 290 million USD was invested in Vietnamese startups in2017, double investment levels from the previous year. Investments concentratedon fintech, food tech and e-commerce startups, along with logistics and onlinetravel services.
There are no officialfigures yet for 2018’s deal value, but last year saw two major fundraisings fore-commerce platforms in Vietnam – 50 million USD was invested in Tiki by China’s JD.com and Japanese SoftBank invested 50 million USD in Sendo.
More than 70 venturecapital funds are operating in Vietnam. More than two thirds are from overseasincluding CyberAgent Venture, Incubate Fund, SoftBank Capital, Crystal HorseInvestments and Asia Venture Groups.
Entrepreneurs andinvestors have bet big on Vietnam’s boom economy, which has risen by an annualaverage of 6 percent over the past 10 years.
Vietnam is an attractivedestination for startups thanks to its growing tech scene and its large pool oflow-cost, highly skilled tech talent. According to Binh Tran, a partner at 500Startups and co-founder of Klout, Inc., the country’s engineers are able tobuild and develop products just as well as their rivals in Silicon Valley – ata cheaper cost.
Many Vietnamese talentsfrom around the world who have rich experience working for multinationalcompanies have returned to Vietnam and launched their own startups. Apart fromcapital, Vietnamese returnees bring fresh ideas, business knowledge andconnections.
Eddi Thai, generalpartner at 500 Startups, argued Vietnam has a competitive advantage over otheremerging markets.
“In Southeast Asia,Singapore and Malaysia have well-developed startup ecosystems,” Thai was quotedas saying on ictnews.vn “In contrast, Vietnam has beenemerging thanks to rapid economic expansion, favourable demographics andtalents.”
Vietnam currently hasabout 250,000 tech engineers, double the number it had three years ago, Thaisaid. The salary for IT engineers in Vietnam was still 40 percent lower than inChina and India.
He said many of the startupshe has invested in provide financial solutions to the Vietnamese market,including Productify and Detexian. He expects significant advances in fintech,e-commerce, logistics, education and health in the next few years.
The startup community isalso strongly supported by the Government. Three major high-tech parks arebeing built in the country’s three main tech hubs of Hanoi, Ho Chi Minh Cityand Da Nang.
An 85 million USD startupfund is also expected to launch this year. Projects, incubator programmes andfinancial support will help local entrepreneurs build their companies andexpand within Vietnam and internationally.
At the dawn of theFourth Industrial Revolution, technology and innovation are a key driver ofgrowth. With a rising number of young and talented entrepreneurs, Vietnamstands a chance of becoming a key spot on the global startup map.-VNS/VNA
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