The article cites a report published in July 2022 by KPMG International Ltd. and HSBC Holdings Plc. which states that the number of start-ups in the country nearly doubled from the beginning of the COVID-19 pandemic to mid-2022.

leftcenterrightdel
In 2021, Vietnam draws a record 2.6 billion USD through 233 private deals, up from 700 million USD via 140 deals of the previous year. (Photo: baodautu.vn)

Some of the world’s largest investors including Sequoia Capital, Warburg Pincus LLC, and Alibaba Group Holding Ltd. are backing start-ups offering promising solutions.

According to data from Google, Temasek Holdings Pte., and Bain & Co., in 2021, Vietnam drew a record 2.6 billion USD through 233 private deals, up from 700 million USD via 140 deals of the previous year.

According to investment firm Do Ventures, local start-ups are also competing against businesses from throughout Southeast Asia. Investment in start-ups in Vietnam accounts for 13% of the total venture funding flows into the region after Indonesia and Singapore in 2021.

Bloomberg’s article also mentions the Vietnamese government aims to turn Ho Chi Minh City into a magnet for tech funding and is striving to grow its digital economy which is expected to represent 40% of the Southern city’s gross domestic product.

The city’s authorities thus prioritize attracting foreign investment to high-tech projects, while also offering other incentives to lure global talent and international firms to establish innovation research centres.

Experts said that Ho Chi Minh City has factors to make it the next Silicon Valley including a heavy math and science educational system, a decades-old software outsourcing industry that’s created an abundance of inexpensive and talented engineers, and the benefits of Vietnam’s 2021 economic growth - one of the fastest across Asia.

Source: VNA