Vietnamese and Japanese startups eye cooperation

There were few startups in ASEAN a decade ago. At that time, startups were mostly operating in Silicon Valley, China, and the EU. However, the situation has changed since then and the number of startups in the region has grown significantlly. The startup ecosystem in Vietnam is developing particularly fast. Last year, Vietnam climbed five places to 54th place in the latest Global Startup Ecosystem Index according to StartupBlink.

Established in 2015, Vietnamese startup Abivin operates in Myanmar, Singapore, Indonesia, and Japan, providing software solutions for corporate governance in the transport, electronics, and construction industries. It is seeking to expand further.

Pham Nam Long, CEO and founder of Abivin said, “Japan is the world’s third-largest economy. So, it is a potential market for us. Our software can help businesses deal with labour recruitment and increase productivity”.

Similarly, another Vietnamese startup Fastech Asia, which runs the men's sportswear brand Coolmate, has seen its annual growth rate double then quadruple since it was established in 2019. In 2022, it reported revenue of $12 million. Coolmate has investment from a Japanese fund.

“We are expanding in Asia, the Philippines, and Indonesia,” said Pham Chi Nhu, CEO of Coolmate. “We plan to launch an initial public offering in Vietnam or elsewhere in Asia in 2025 to facilitate our expansion”.

At the event, Japanese startup Medring, a pioneer in healthtech developing medical SaaS and AI to support clinics in Vietnam, also expressed its interest in cooperating with Vietnamese firms.

Kazuma Abe, CEO and Founder of Medring said, “We want to partner with Vietnamese startups. We plan to introduce better products to the Vietnamese market, but also produce for export. We plan to develop a high-quality clinic in Indonesia and then do the same in Vietnam”.

Despite strong interest from the Japanese market and ongoing partnerships with Japanese firms, the two nations also face obstacles, with language being the most significant obstacle, "Vietnamese and Japanese startups should deal with the language problem soon, while developing appropriate products and marketing strategies for locals," said Abvin CEO Long.

Startups seek the knowledge to flourish With the venture capital market in 2022 deemed generally gloomy with total investment and number of deals falling globally, more work is to be carried out for new companies in Vietnam to survive.

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Fintech startups urged to think for long term While tech businesses around the world struggle to raise funds, some fintech companies in Southeast Asia continue to receive large sums.

Vietnamese startups raise $855 million in 2022 Vietnamese startups secured $855 million in fresh funding in 2022, which is only one-third compared to the value in 2021, according to a recent report by Nextrans.

Vietnam an attractive spot for startups: Bloomberg Bloomberg on February 14 published an article “Silicon Valley talent is helping grow Vietnam’s startup hub”, quoting founders’ opinion that an abundance of inexpensive engineers coupled with a fast-growing economy makes Vietnam an attractive spot for startups.