The Reward for Patient Capital: An Investor Perspective on Vietnam

This article is adapted from Tech in Asia

Singapore, 23 January 2026 — As global capital enters a more selective and disciplined cycle, investment and exit decisions in emerging markets are increasingly assessed through a pragmatic and long-term lens. Hosted by Thien Viet Securities (TVS) and AiViet Venture, Founder Codex 2026 summit brought forward in-depth perspectives from investors actively deploying capital in Vietnam, highlighting how the market is being viewed in the current cycle—one in which patient capital is a key determinant of long-term value.

The panel was moderated by Mr. Nguyen Hoa Chung, Managing Director, Private Equity at Thien Viet Securities (TVS), with the participation of senior investors from TVS, Jungle Ventures, and Vertex Ventures. The discussion covered investment selection, growth opportunities, core competitive moats of Vietnamese companies, and challenges in exit pathways.

Vietnam: From a Frontier Market to an Independent Asset Class

Despite recent withdrawals or increased caution among some foreign funds, panelists agreed that Vietnam is increasingly being viewed as an independent asset class, rather than merely a component of frontier-market allocations.

Speaking at the event, Mr. Terence Ting, Chairman of the Investment Committee at TVS, noted that Vietnam is following a development trajectory comparable to East Asian economies such as Japan, Taiwan, South Korea, and China. Industrialization, urbanization, expansion of the middle class, and rising consumer demand not only provide growth momentum, but also form a long-term foundation for investment decisions.

He also highlighted an important difference in scale. Compared with China, Vietnam’s market is smaller; however, once a company establishes a leading position, competitive pressure from new well-funded entrants may be lower. This creates more favorable conditions for building sustainable competitive advantages over the long term.

From a regional perspective, Mr. Rishab Malik, Partner at Jungle Ventures, assessed that Vietnam shares several similarities with India, including strong macroeconomic fundamentals, attractive GDP growth, and increasingly visible policy support from the Government. While some Southeast Asian markets continue to face challenges in generating returns, he believes Vietnam is laying the groundwork for something bigger.

From another angle, Mr. Genping Liu, Partner at Vertex Ventures Southeast Asia & India, observed that Vietnam holds a closer resemblance to East Asian economies than to much of Southeast Asia, due to cultural similarities, historical linkages, and a strong entrepreneurial spirit. With a population of approximately 100 million, Vietnam’s domestic market is sufficiently large for companies to test and refine their business models, while still allowing capable teams to pursue global market early on.

Capital Prioritizes Quality and Long-Term Competitive Moats

In the current investment cycle, panelists agreed that capital is no longer driven by short-term growth expectations but instead prioritizes companies with operational and governance excellence.

According to Mr. Terence Ting, TVS’ investment strategy focuses on three main areas: first, sectors serving the rising consumption needs of Vietnam’s growing middle class such as education, healthcare, and financial services; second, products and services supporting digital transformation for enterprises and SMEs; and third, enterprise software and AI-enabled solutions developed by Vietnamese engineering teams with regional and global outreach.

This view was echoed by regional counterparts on the panel. Mr. Rishab Malik emphasized that Vietnam’s rapidly expanding technology workforce – comprising hundreds of thousands of engineers – represents a fundamental advantage for building technology-enabled companies.

At the same time, panelists noted that “going global” should not be considered a default strategy from the outset. Market expansion should be pursued selectively, aligned with the company’s business model, market timing, and core capabilities of the founding team.

Beyond technology, investors also highlighted growing interest in value-added manufacturing, reflecting shifts previously seen in China and India. Representatives from Jungle Ventures shared that the firm typically invests across multiple funding rounds to increase ownership, while prioritizing early-stage participation in emerging areas such as artificial intelligence (AI) in order to accompany and help shape companies from an early phase.

Exits as the Outcome of a Long-Term Process

Exit considerations were a central topic of the discussion amid ongoing restructuring of capital markets. Panelists emphasized that liquidity should not be viewed as an opportunistic event, but as the outcome of long-term preparation—starting from company quality, governance capability, and effective partnership between investors and founding teams.

Mr. Terence Ting noted that well-managed companies with sustainable competitive moats will ultimately find liquidity opportunities. Plus, regulatory adjustments to open up IPO path for technology companies, together with increasing participation of institutional capital in domestic financial markets, are expected to broaden exit channels over the medium to long term. In the same vein, Mr. Rishab Malik stated that the higher the quality of the asset, the clearer and more viable the exit pathway becomes.

From the perspective of investors participating in Founder Codex 2026, Vietnam is entering a new phase in private capital market development—one in which returns are driven not by speed, but by discipline and patience. Companies that combine deep understanding of the domestic market with sound operating standards, strong governance, and disciplined capital efficiency are likely to be primary beneficiaries of the current restructuring cycle, while laying a solid foundation for regional and global expansion over the long term.

About Thien Viet Securities (TVS)

TVS is a full-service boutique investment bank with headquarters in Hanoi and Ho Chi Minh City. We are dedicated to attracting the brightest, most motivated and creative individuals to join us in building an exceptional investment banking team in Vietnam’s challenging financial market. Being one of the first investees of IFC (a member of World Bank Group), Thien Viet has proved the commitment to become a leading local merchant investment bank in Vietnam, following international standards. We are dedicated to upholding interests of company’s clients above all else while maintaining the highest standards of integrity and professional behavior.

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