This VC firm has Vietnam on its radar

This is adapted from Tech in Asia

Vietnam is coming up as an exciting market in Southeast Asia.

The country has stepped into the limelight, and some investors are calling it the third major startup market in Southeast Asia after Singapore and Indonesia. It’s also home to several startups that have made their mark on the global stage, such as electric vehicle maker VinFast, which listed on the Nasdaq in 2023, as well as blockchain gaming startup Sky Mavis, the firm behind the game Axie Infinity.

At Tech in Asia’s upcoming Saigon Summit, we’re gathering some of Asia’s leading investors to share their perspectives on Vietnam’s tech potential.

Vertex Ventures Southeast Asia and India (VVSEAI) is one example. Having backed companies such as Grab, Nium, and Patsnap, the firm recently closed its fifth fund at US$541 million.

Now, Vietnam is on its radar.

Ahead of the summit, Tuyet Vu, advisor at VVSEAI, shares her thoughts on the country’s tech opportunity.

The following interview has been edited for clarity and brevity.

What do you do at Vertex Ventures?

I’m an advisor at VVSEAI. We are excited about the tremendous growth opportunity in Vietnam and are looking to back founders building businesses that have the potential to become regional or global champions.

My role entails sourcing for ambitious and motivated founders in this market and helping them succeed after investment. We already have one Vietnamese portfolio company, Metub, in the content creator space.

Why are you excited about Vietnam’s tech and startup ecosystem?

First, Vietnam is among the few countries hitting more than 5% year-on-year growth in the past year, and this growth is expected to continue in the foreseeable future. It is a sizable market – Vietnam is a country with a population of nearly 100 million, with rising income levels and an expanding middle class with multiple unmet needs. This presents an exciting opportunity for potential startups.

Second, we are excited about the young, tech-savvy, digital-first Vietnamese millennials and Gen Z. They are in their prime earning years or about to enter the workforce. This provides a solid foundation for technological innovation and adoption.

Finally, we believe in the growing pool of Vietnamese skilled talent, particularly in fields such as software development, engineering, and design. We like the optimism and hunger that we see in the young generation of builders. They are fast learners who constantly stay on top of the latest tech trends and business models in the world. They are also very forward looking and ambitious. We are hopeful to find the next unicorn builders in this market and we look forward to building great companies with them.

What are the biggest challenges facing Vietnam’s startups?

First is the operational challenge of the market. It takes street-smart entrepreneurs with the ability to deeply understand the market to navigate and thrive in a place like Vietnam.

Having a financial war chest can only go so far, but in these challenging times, it is a critical part of the solution for founders looking to scale their business. There comes the second challenge, which is the need to educate investors on the market potential of tech startups. Sometimes, this potential is not obvious, especially in a nuanced market such as ours. Therefore, it takes convincing and patient education to demonstrate this potential to investors.

To access funding, Vietnamese startup founders also need strong communication skills in English – be it verbal or written communication. While we increasingly see more founders fluent in English, there are high-potential founders with strong ability to deliver who are disadvantaged because of low English literacy levels.

Third is the access to talent. As startups scale, strong talent is in short supply in all positions – especially in mid-level roles. Vietnamese startups should seek to address this challenge to continue thriving.

What will you be speaking about at Tech in Asia’s Saigon Summit and why is it important?

I will join other speakers on a panel discussing how startups can get funded in Vietnam.

It will be an interesting topic particularly for startups in Vietnam during this time. Access to capital has been a challenge for many startups in the country thus far. It’s driven by either a lack of diversity of investors in the market or the disconnect between founders and investors. I’m eager to meet with many founders in this summit and share with them about VVSEAI’s interest and excitement for this market.

We believe in co-creating champions with outstanding founders. We’re looking forward to meeting founders and hearing from them about their vision, future plans, their priorities, their needs, and how we could be helpful for them in their journey.
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Hear more from Tuyet, as well as a host of other exciting speakers, at Tech in Asia’s upcoming Saigon Summit. Held on May 30 at GEM Center, Ho Chi Minh City, we’re bringing together some of Southeast Asia’s best and brightest to chart Vietnam’s tech future together.

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