A closer look at Vietnam’s top 5 tech startups right now

Despite the emergence of innovative tech startups in Vietnam over the last several years, the country still needs to position itself as a hotspot for new businesses. According to Statista Research, the nation’s ecosystem ranked fifth in 2023 among the other Association of Southeast Asian Nations (ASEAN) members and 58th globally.

Total funding dropped 52.7% to USD 46.5 million in the first half (H1) of 2024, according to market intelligence platform Tracxn. Early-stage investments decreased by 41% to USD 41.3 million, and there were no funds for late-stage startups. Furthermore, the mergers and acquisitions (M&A) landscape experienced a contraction, and no new unicorns (companies with billion-dollar valuations) were minted in H1.

Five thriving tech startups in Vietnam

Vietnam’s startup ecosystem faces challenges like a lack of robust policy and regulatory structures, inadequate push for innovation, and a limited local talent pool. Moreover, there is an unconducive business environment and a cap on investments from a venture capital (VC) fund. TNGlobal also highlights cybersecurity threats and infrastructure gaps, such as slow internet speeds.

Despite the obstacles and limitations, the following startups are doing well:

Techcoop

Agritech company Techcoop seeks to optimise the agriculture production supply chain through technology to ensure all stakeholders benefit from the products and services. Lenders provide funding, while agri-input suppliers sell seeds, fertilisers, farm tools, and more to the farmers, agribusinesses, and farmer-owned cooperatives.

Techcoop recently raised USD 70 million in Series A funding from venture capital firms TNB Aura and Ascend Vietnam Ventures (AVV). The company will use the money to develop its technology and expand to other areas.

Outlook for Vietnam’s tech startup ecosystem

The focus of Vietnam’s top 5 tech startups above revolves around supply chain and technological concerns. The country’s logistics sector is vulnerable to disruptions caused by natural disasters, geopolitical tensions, and economic downturns. Some quick fixes would be diversifying suppliers, looking for local raw materials and manufacturers, and working with experts like DHL Express Vietnam, who have an established network and experience.

Secondly, tech startups in Vietnam will benefit from investing in sustainability. Powering technological tools will be cheaper with clean energy, and it is possible to lower costs further by using electric vehicles for transportation.

Finally, stakeholders can positively impact their respective sectors by collaborating with the government to shape funding and talent recruitment policies and establish a healthier regulatory climate.

Edited for brevity