Vietnam's emerging tech industry attracts investment from the US

On August 15, the US Department of State , the US Embassy in Hanoi and partners: Posts and Telecommunications Institute of Technology (PTIT), VMO Holdings Technology Joint Stock Company and New Energy Nexus Vietnam Co., Ltd. co-organized the Investment Connection Event for Vietnamese Climate Technology Startups.

The event brings together a dynamic ecosystem of 100 startups, investors and leading experts in climate technology, with the aim of narrowing the gap between startups and mobilizing the necessary capital to promote the development of the domestic climate technology industry.

Speaking at the event, Mr. Alan Brinker, Regional Climate Officer of the US Embassy in Vietnam, emphasized that the comprehensive strategic partnership has opened up opportunities for the two countries to identify new areas of cooperation. One of these is cooperation in addressing the challenges of climate change through promoting energy transition.

The Vietnam Climate Technology Startup Investment Connection Event brought together nearly 100 startups, investors and leading experts in climate technology. Photo: US Embassy in Vietnam.

Notably, Ms. Dorothy McAulife, US President Joe Biden’s Special Envoy for Global Partnerships at the US State Department , delivered a speech at the event. She emphasized the US’s commitment to continue supporting Vietnam in achieving its climate goals, and to continue working with Vietnamese partners to support climate startups through the Collaborative Center for Climate Entrepreneurship (CCE Hub).

“Since General Secretary Nguyen Phu Trong stood with President Joe Biden to announce our comprehensive strategic partnership, and affirm that our two countries will work together to achieve our shared goals of peace, prosperity and sustainable development, we have made great progress in realizing those aspirations. Part of that is the establishment of the Climate Innovation Hub to support climate technology founders in Hanoi ,” said Dorothy McAulife.

Field of the future

In recent years, climate change has become increasingly extreme, the most obvious manifestation of which is global warming leading to ice melting at the poles and that is the main cause of rising sea levels. The impacts of this phenomenon have significantly affected Vietnam, especially the ecosystem, environmental resources and human life.

A recent study by the World Bank (WB) indicated that climate change could cause Vietnam to lose about 12% - 14.5% of GDP each year by 2050, and could push 1 million people into extreme poverty by 2030. The WB also estimated that to overcome the impacts of climate change, Vietnam will need an additional 368 billion USD by 2040 and maintain the goal of achieving net zero emissions.

This requires Vietnam to transform its development model from an economy dependent on fossil fuels and natural resources to a green economy that reduces carbon emissions to adapt to climate change. Therefore, technologies that reduce greenhouse gas emissions or address the impacts of global warming need to be considered and prioritized for development in the coming time.

Climate technology investment in Vietnam accounts for only 4% of total venture capital in 2023, much lower than the global average of 10%, but there is room for growth as connections are fostered. In addition, climate technology startups in Vietnam have great potential for development with innovative solutions.

In this regard, Special Envoy Dorothy McAulife emphasized that the US is committed to continuing to support the energy transition, carbon market development, forest protection, agricultural resilience, and small and medium-sized enterprise development in Vietnam. This support will be provided through agencies such as the US Agency for International Development (USAID), the US Environmental Protection Agency (EPA), the US Department of Energy (DOE), and the US International Development Finance Corporation (DFC).

US President Joe Biden's Special Envoy for Global Partnerships at the US State Department speaks at the Vietnam Climate Technology Startup Investment Connection Event. Photo: US Embassy in Vietnam

“In fact, in March this year, the US Export-Import Bank (US EXIM Bank) signed a $500 million Memorandum of Understanding with the Vietnam Development Bank (VDB) on green energy exports,” McAulife said. In addition, New Energy Nexus and the US State Department have committed to jointly invest $450,000 over the next two years to build CCE Hub programs, including supporting climate technology startups in Vietnam and Southeast Asia.

'Launch pad' for climate technology

In recognition of the important role that entrepreneurship plays in addressing climate change, the U.S. State Department CCE was established on the sidelines of the 2021 United Nations Climate Change Summit. The program aims to address the climate crisis and contribute to the economic empowerment of developing countries by fostering entrepreneurship focused on climate solutions.

The CCE Hub in Vietnam was launched in September 2023 during US President Joe Biden's visit to Hanoi last year. The program aims to facilitate the establishment of pioneering businesses in sustainable solutions such as clean energy, sustainable agriculture, resilience and climate change...

The Vietnam Climate Technology Startup Investment Connection Event is one of the important milestones of CCE Hub. Operated by VMO and PTIT, this is the first CCE hub in Asia and the second in the world.

Signing ceremony of the memorandum of understanding between the US Department of State, PTIT and VMO Holdings on the opening of the Climate Change Entrepreneurship Hub (CCE Hub) in Vietnam. Photo: US Embassy in Vietnam

“In our efforts to support climate startups in Vietnam, we are grateful to have partners like VMO Technology Company and PTITT. These are partners who have made important contributions to helping us launch the CCE Hub and advance CCE’s mission of energizing startups focused on sustainable development around the world,” Special Envoy Dorothy McAulife said at the event.

Ms. McAulife was also pleased to announce that the CCE Hub has welcomed new partners such as New Energy Nexus and the World Wildlife Fund (WWF). “These collaborations will accelerate climate-focused investment and help the region achieve its climate goals,” the special envoy stressed.

Source: https://kinhtedothi.vn/nganh-cong-nghe-moi-noi-tai-viet-nam-thu-hut-dau-tu-tu-my.html