Deputy Prime Minister Nguyen Chi Dung said that innovation is not only a driving force for growth but also the “key” for each country to affirm its position in the global economy .
In fact, Vietnam is witnessing an unprecedented wave of investment in high-tech and innovation sectors. In particular, artificial intelligence (AI), with strong breakthroughs in generative AI, is becoming the focus of attention from global strategic investors.
The recently released Vietnam Innovation and Private Equity 2025 Report shows that Vietnam is not only welcoming investment capital but also ready to lead innovation investment activities in the region.
In 2024, investment capital in the innovation sector will reach 2.3 billion USD, with 141 deals; of which, the number of investment deals from 100 - 300 million USD will increase 2.7 times; the number of investment deals under 500,000 USD will increase 73% compared to the previous year; the value of acquisitions of companies operating in the innovation sector will reach about 1.7 billion USD.
Vietnam is expected to emerge as a “hot spot” for new-generation technology investment in 2024, with investment in AI startups increasing 8-fold in 2023 (from 10 million USD to 80 million USD); Agritech will increase 9-fold due to the demand for food security and digital supply chains…
The robust deal activity, supported by strong fundamentals, shows that investor confidence remains strong amid weakening global venture capital and private equity flows.
At the same time, Vietnam is in a large-scale infrastructure investment cycle with nearly 500 billion USD of FDI capital being deployed, including strategic projects from Samsung, Intel, Lego and Foxconn. Vietnam is not only a manufacturing factory but is becoming a strategic link in the global supply chain.
Ms. Le Hoang Uyen Vy, Chairman of VPCA and Managing Director of Do Ventures, said 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.
Mr. Ben Sheridan, Global Director of Financial Investment at BCG, assessed that Vietnam is entering a period of strong transformation with many rare favorable factors opening up unprecedented opportunities for private capital flows. That is, real GDP growth of 7.1% in 2024 - higher than most Asian economies, low inflation and many investment opportunities for long-term growth.
The size of the economy is expected to reach 1,100 billion USD by 2035 - 2.5 times higher than the current size; of which, the digital economy contributes 18.3% of GDP, aiming for 35% by 2030.
Deputy Prime Minister Nguyen Chi Dung said that it is necessary to re-evaluate the role of innovation funds and private capital in promoting the innovation ecosystem. These funds not only provide important seed capital for high-tech projects but also play a role in “activating” the participation of the private sector, contributing to a strong increase in the scale and efficiency of investment...
According to Mr. Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), each year, Vietnam has attracted over 500 million USD in venture capital deals for creative startups. One of the most important policies in the story of start-up development is to solve venture capital. Venture capital requires a State to have seed capital, seed capital can be very low, under 5% but from there can attract other investment funds.
“For creative startups, commercial capital is not really the main thing. Many large investment funds worth billions of dollars are willing to participate on the condition that we must initially incubate and have seed capital for the startup,” Mr. Thinh emphasized.
Ms. Le Hoang Uyen Vy believes that cooperation with regional venture capital associations will open new doors for Vietnamese startups; at the same time, attract Asian private capital into the domestic innovation sector.
To strongly increase the scale and efficiency of investment in innovation, according to NIC Deputy Director Do Tien Thinh, ministries and sectors need to introduce policies and mechanisms to support innovation, including reducing barriers in regulations, administrative procedures, targeted tax incentives, providing grants and financial support for research activities, developing business incubation, building shared digital infrastructure to encourage innovation, creativity and digital transformation.
Deputy Prime Minister Nguyen Chi Dung requested the subjects of the innovation ecosystem, especially investment funds, innovation enterprises and startups, to synchronously deploy groups of solutions, accordingly, continuing to have recommendations and proposals on institutions and policies to create open and favorable conditions for private investment funds operating in Vietnam, especially funds with priority investment portfolios for emerging technology, high technology and strategic technology industries.
In addition, through connecting forums such as the 2025 Innovation Investment Forum, investment funds and businesses need to continue to discuss specifically about business investment orientations, potential advantages of each side and soon establish practical and effective cooperation mechanisms and forms.
Along with that, ministries, branches, research institutes, universities, and innovation centers need to continue to play the role of supporting and promoting agencies, creating an open and transparent "playground" for businesses, funds, organizations, and individuals to invest in innovation and startups.
"The Government is committed to always being ready to act, accompany and create the most favorable conditions for all parties involved in promoting innovation," Deputy Prime Minister Nguyen Chi Dung emphasized.
Source: https://doanhnghiepvn.vn/cong-nghe/he-sinh-thai-doi-moi-sang-tao-viet-nam-san-sang-cho-quy-mo-lon-hon/20250505081757849
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