Vietnamese Startups Drawing Investors from Around the World
April 17, 2016 Leave a comment
Vietnam is turning into an investment hotspot thanks to a number of promising tech startups in that country. Although hard data is difficult to come by, Singapore based Tech in Asia, a startup which apparently researches other startups, says there about 1,500 tech startups in Vietnam at the moment, which is a larger number per capita than Indonesia, China, or India.
Those startups benefit from a tech-savvy population with a median age of 30, in a country where the average 15 year old beats out American, British, and Australian kids in maths and science. Startups there don’t receive much support from the government, just around $10,000 cash and some legal advice, so there are plenty of investment opportunities.
Investments are coming from all over the place, but especially from other Asian countries, like Japan and South Korea. In fact, South Korea’s Samsung has had production in Vietnam for years, and are being joined by a number of other companies seeking cheaper labor than China, closer ties to the European Union, and incentives to lure investors away from the country’s neighbors. Toshiba, Panasonic, and LG have all been producing in Vietnam for quite some time as well. American firms are shoring up or expanding their investments there as well. Goldman Sachs and Standard Chartered PLC just invested another $28 million, and 500 Startups from Silicon Valley pitched in another $10 million.
eCommerce is one of the main focuses of a lot of these startups, and there’s plenty of room for that growing segment to keep up steam. But Vietnam also gave us the international hit mobile game Flappy Bird, which took the world by storm a few years ago. Although China and India are investing a lot of their own money into local startups, the Chinese market at least is harder for foreign investors to access, but those barriers don’t seem to exist with Vietnam.