Vietnam to grow into third-largest startup ecosystem in Southeast Asia

Golden Gate Ventures forecasts tremendous growth in the Southeast Asian startup scene, with Vietnam being one of the focal points

Golden Gate Ventures highlighted Vietnam as the rising star in Southeast Asia's startup landscape. According to the latest report by the venture capital firm, Vietnam has already solidified its growing prominence in the region. In 2022, the number of Southeast Asia-focused venture capital funds will put more effort into early stage investments in Vietnam, and it will continue to grow in the next 10 years.

There are five industries in Vietnam that are predicted to catch foreign investors' attention, including e-commerce, financial services, online media, online travel, and food and transport. Emerging home-grown startups include Tiki.vn, Sendo, MoMo, Giaohangnhanh (GHN), Lozi, VNPAY, and others.

According to the report, capital flowing into the Southeast Asian startup scene grew phenomenally over the past decade with total capital invested per annum increasing 50 times from $130 million in 2010 to $6.5 billion in 2020 - with the close of the decade culminating in 15 mega-deals of over $100 million each that accounted for over half of the total capital invested. Food, fintech, and logistics were amongst the verticals that drew the most investment.

The number of IPOs in Southeast Asia is expected to cross 300 by 2030, as more local startups seek an exit in domestic public markets. There is also the emergence of "1.5 and second generation entrepreneurs" who will shape a decade dominated by a rise in social commerce, medtech, fintech-only unicorns, and an uptick in B2B SaaS startups.

Social commerce gross merchandise value will cross $5 billion in 2025 and $25 billion by 2030 due to a continued rise in e-commerce adoption, mixed with growing GDP per capita over the next decade. Meanwhile, medtech is on the rise as a means to provide healthcare access for a large demographic and improve infrastructure challenges in Southeast Asia, especially in a post-pandemic world.

A massive unbanked population in Southeast Asia creates a big opportunity fueling fintech players, providing opportunity for a fintech-only unicorn to emerge. Areas open for disruption include e-wallets, neobanks, buy now pay later, and other forms of financing.

In addition, media and entertainment startups will gain stronger following and funding as the industry is shifting its focus into a digital-first solution, including TV/film, live-streaming, and e-sports. Funding in this space will cross $700 million by 2030.