Vietnam a desirable destination for regional VCs

Southeast Asian venture capital funds have set sights on Vietnamese startups. Charles Wong, co-founder and managing partner of TNB Aura, shared with VIR’s Thanh Van the investment trends of regional funds into Vietnam

What factors are driving this strong appeal of Vietnamese startups to Southeast Asian venture capital (VC) funds?

Vietnam’s startups commanded strong VC interest in early 2025. Major Southeast Asian funds, such as TNB Aura, all deployed multi-million dollar rounds into Vietnamese rms. Several factors explain this surge of interest.

First, Vietnam offers a relatively new but promising stability for VC. This, combined with a widening middle class, deep digital adoption, and a young, tech-savvy population, positions Vietnam as one of the most attractive growth markets in Southeast Asia.

High smartphone penetration and improved infrastructure further unlock opportunities across consumer and enterprise sectors.

Secondly, localised, hyperlocal innovation is yielding compelling startups that solve Vietnam specific needs. Vietnamese founders are tackling problems often overlooked by generic regional players – from cashless payments in rural provinces to AI-powered tools for urban users.

Illustrative deals include TNB Aura’s investment into VUIHOC, an online education platform in Vietnam serving millions of K–12 students with digital learning tools tailored to the local curriculum. This round re-establishes investor confidence in startups that combine global best practices in edtech with localised execution to address Vietnam’s rapidly growing demand for affordable, accessible education.

Thirdly, sectoral shifts are clearer. Rather than a broad pivot away from edtech, investors are increasingly focusing on areas where Vietnam has a disproportionately large and attractive market, such as education and agriculture. Vietnam’s strong agricultural base, combined with urgent climate concerns, makes agritech especially compelling.

How has Vietnam’s VC sector established itself as a key destination for investment in Southeast Asia?

Vietnam’s ecosystem has matured into a key regional investment destination. By the end of the 2024, it boasted over 4,000 startups, including two unicorns and 11 companies valued above $100 million. Support infrastructure has grown too – some 1,400 incubators, over 200 VC funds, approximately 200 co-working spaces, and dozens of accelerators now operate nationwide

This critical mass attracts capital: in 2024 there were about 140 investment deals totalling around $2.3 billion in Vietnamese startups, a volume on par with regional peers. Most funding came from Singaporean and Japanese VCs, re-enacting strong foreign confidence, but local funds continue to play an important role.

In fact, home-grown Vietnamese VCs made as many deals in 2024 as Singaporean rms – a milestone showing domestic investors’ growing conviction. Vietnam’s government and industry are strengthening this position. Global rankings have risen (StartupBlink moved Vietnam to 56th globally in 2024), and public–private initiatives like the Vietnam Innovation and Private Capital Summit have sealed co-investment agreements with Korea, Singapore, and Hong Kong VC associations.

These partnerships, combining over $5 trillion assets under management, are intended to smooth cross-border funding and scale Vietnamese startups in ASEAN. Altogether, Vietnam’s entrepreneurial vibrancy, improving legal framework, and cross-border links give it an edge.

What is TNB Aura’s plan to support the development of the startup ecosystem in Vietnam?

Beyond making funding deals, TNB Aura actively supports the growth of Vietnam’s startup ecosystem. The firm has set up a Vietnam Scout initiative to identify and back local founders. TNB commits early capital (often more than $250,000 per team) and mentorship even during funding slowdowns, underscoring its long-term commitment to local founders adopting proven business models.

On the talent side, TNB Aura invests in capacity-building. It runs internships and MBA consulting projects with leading schools to bridge academic theory and real startup work. Crucially, TNB Aura created Startup Wars, a pioneering VC case competition across Southeast Asia. In this multi-round contest, university teams analyse authentic Vietnamese startup case studies and pitch investment theses as if on a VC committee.

Startup Wars immerses students in the mechanics of investing and entrepreneurship, giving them feedback from investors and founders. Winners often earn internships or project opportunities with VC firms and startups. This hands-on approach, taught by VCs at TNB Aura, aims to spawn the next generation of savvy investors and founders in Vietnam and the region.