Vietnam – a magnet for foreign investors: Russian expert

Illustrative photo. (Source: VNA)

Hanoi – Having the third most vibrant startup ecosystem in Southeast Asia, Vietnam has been a promising land for foreign investors, according to Sergey Sinitsyn from the Moscow State Institute of International Relations.

A report from the ESP Capital and Cento Ventures shows that investment for Vietnam’s share of startup investment value in the region jumped from 5 percent in 2018 to 17 percent last year.

In the past four years, the country’s innovation and startup ecosystem has developed from dawn to a level that is significant to the whole region, Sinitsyn was reported by Sputnik as saying.

Vietnam has become a hub for innovation projects in Asia-Pacific, he said, adding attractive sectors include finance, education, technology, artificial intelligence and blockchain technology.

Several standout investments are Singaporean Temasek’s participation in VNG Corporation’s project, Softbanks & GIC’s investment in VNPAY, and Warburg Pincus’s investment in MoMo.

Particularly, VNG Corporation became Vietnam’s first ever unicorn tech start-up following investment of GIC, he said.

He stressed Vietnam has high-quality human resources, laying stress on the important roles of universities, institutes as well as business incubators and human resources training centres.

Meanwhile, the Vietnamese Government plays a tectonic role in encouraging and supporting a modern economy, he said, describing the Ministry of Science and Technology’s effort to organise the annual Techfest Vietnam which creates opportunities for local startups to access international markets like the US, the Republic of Korea, Singapore and Russia as a significant milestone in pushing ahead an innovative economy in the nation.