Vietnam Enters a "Golden Decade" for Innovation and Private Capital

With a solid macroeconomic foundation, a growing middle class and a strong digital economy, Vietnam is entering a “golden decade” to realize its aspiration of becoming a leading regional innovation economy. The main drivers for this transformation come from two key factors: innovation and private capital flows.

This is the main content stated in the Report "Innovation Investment and Private Capital Investment in Vietnam 2025" announced at the Vietnam Innovation Investment Forum 2025 (VIPC Summit 2025), on April 22.

Bright Spot Amid Global Uncertainty

The VIPC Summit 2025 event was attended by hundreds of domestic and international investors, technology enterprises and start-up support organizations. With the theme "Promoting innovation, unlocking private capital, bringing Vietnam into the era of development," the forum affirmed its role as an important bridge between the State and the private sector, thereby aiming to effectively attract investment capital flows for strategic technology fields.

The report "Innovation and Private Equity Investment in Vietnam 2025" - jointly conducted by the National Innovation Center (NIC), the Ministry of Finance, the Vietnam Private Equity Development Organization (VPCA) and the Boston Consulting Group (BCG) - has provided a comprehensive and convincing view of Vietnam's potential in the context of a global economic downturn and tightening capital markets.

Vietnam still recorded $2.3 billion in investment capital disbursed through 141 deals in 2024. This shows investor confidence in Vietnam's solid fundamentals, amid weakening global venture capital and private equity flows.

Stressing that this is a “breakthrough moment,” the report points out a series of rare favorable factors that create Vietnam’s special appeal in the eyes of investors.

On the macro level, GDP growth is expected to reach an impressive 7.1% in 2024, outperforming most Asian economies. The economy is growing in size and is expected to reach $1,100 billion by 2035, 2.5 times larger than it is now.

Vietnam's GDP growth is expected to reach an impressive 7.1% in 2024, outperforming most Asian economies. (Photo: Vietnam+)

Further evidence is the abundant foreign direct investment (FDI) inflows with a disbursement value of 25 billion USD in 2024, up 9% year-on-year. In addition, the middle class is growing rapidly and is expected to account for 46% of the population by 2030, thereby creating a potential consumer market. In particular, the digital economy is making an increasingly large contribution, reaching 18.3% of GDP and aiming for 35% by 2030.

Ms. Le Hoang Uyen Vy, Chairman of VPCA and CEO of Do Ventures, commented that Vietnam has transformed from a potential market to a country ready to break out. This is the decade that will shape Vietnam’s future. In the context of global instability, Vietnam has emerged as a destination for sustainable growth, innovation from the ground up and pioneering policies.

“The capital is ready and the time is now,” said Ms. Vy.

Ecosystem ready for scale

The report also pointed out that the Government has been vigorously implementing an economic transformation roadmap, focusing on the pillars of digital economy, green economy and high technology. Specifically, from capital market reform to the orientation of building an international financial center and legal framework for blockchain technology, Vietnam's financial infrastructure is developing strongly. These reforms facilitate more transparent capital exits, minimize risks for foreign investors and aim for investment credit ratings in the near future.

At the same time, Vietnam is in the midst of a large-scale infrastructure investment cycle with nearly $500 billion in FDI capital being deployed, including strategic projects from Samsung, Intel, Lego and Foxconn. The report emphasizes that Vietnam is not only a manufacturing factory but is also becoming a strategic link in the global supply chain.

Mr. Vu Quoc Huy, Director of the National Innovation Center (NIC), shared that Vietnam’s growth story today is closely linked to its innovation strategy. Vietnam not only invests in physical infrastructure but also builds future-ready ecosystems - a convergence of digital talent, high technology and international capital. Once again, he affirmed that this is an important time to turn Vietnam into a leading flexible innovation economy in Asia.

To realize this orientation, attracting investment resources, especially private investment capital, plays a key role. According to the report, Vietnam recorded nearly 100 funds investing in technology startups, of which the most active investors come from Singapore.

Opportunities for private capital

Another important content in the report is to highlight the directions of creating value for investors. Specifically, the issue of cooperation with leading domestic enterprises to expand to the ASEAN region; Investing in early-stage digital startups, especially in AI, automation and high-tech agriculture; Digitizing traditional fragmented industries; Focusing on green technology, renewable energy and sustainable logistics; Building smart infrastructure and digital public services in secondary cities.

Mr. Ben Sheridan, Global Director of Financial Investment at BCG, commented that Vietnam is entering a period of strong transformation with many rare favorable factors opening up unprecedented opportunities for private capital flows. Investors who understand the specific macroeconomic characteristics of Vietnam and have a long-term vision will have the opportunity to shape the next "wave" of growth in Southeast Asia.

“We are entering a golden age of private equity in Vietnam. This report is a strategic guide for the next steps,” said Mr. Ben Sheridan.

According to the report, although the total value of private capital decreased by 35% in 2024, the level of investor participation remained very positive. Specifically, the economy recorded nearly 150 active venture capital funds during the year, mainly from Singapore, Japan and Vietnam. Of which, deals under 500,000 USD increased by 73%, which shows the resilience of the startup ecosystem.

In addition, the report said that Vietnam is also emerging as a hot spot for new-generation technology fields, with investment in AI startups increasing eightfold compared to 2023, and investment in AgriTech increasing ninefold due to the demand for food security and digital supply chains.

Vietnam is emerging as a hot spot for new-generation technology fields. (Photo: Vietnam+)

As an investor who has been in Vietnam for a decade, Mr. Vinnie Lauria, Founder of Golden Gate Ventures, shared that the business environment is very attractive, especially the Vietnamese people with their education level, talent and aspiration to build large and innovative enterprises...

He also said that Golden Gate Ventures is an investment fund with total assets under management (AUM) of 300 million USD and is making more than 100 investments in Asia, of which nearly 20 are in Vietnam. In the past two years, Golden Gate Ventures has continued to accelerate its investment and one-third of all new investments are directed to Vietnam.

Sharing the same view, Mr. Chad Ovel, representative from Mekong Capital, said that the forum is an important event to remind the outside investment community that Vietnam is a great investment destination.

Mr. Chad Ovel shared: “Mekong Capital has been investing in Vietnam for 25 years. Currently, many new investors have not had the positive experiences that we have had here. Therefore, organizing an event like this will help put Vietnam on the international financial “map”. This event is also a testament to the vibrant business community investing here and at the same time connecting investors in the region with investors currently present in Vietnam.”./.

(Vietnam+)

Source: https://www.vietnamplus.vn/viet-nam-buoc-vao-thap-ky-vang-cho-doi-moi-sang-tao-va-von-tu-nhan-post1034358.vnp