Vietnamese startups raised $398 million in venture funding across 118 deals in 2024, down from $529 million over 122 deals in 2023, says the 2025 Vietnam Innovation & Private Capital Report.

Business automation led by deal value, with investment surging 562% to $84 million. Agriculture ranked second, recording an 857% jump in VC funding, while financial services saw a sharp 61% decline.

The Building of SIHUB, the symbol of Ho Chi Minh City's innovation and startup ecosystem. Photo courtesy of SIHUB.

Investment in artificial intelligence stood out, with VC funding into AI startups rising eightfold to $80 million last year, underscoring growing investor interest in data-driven and productivity-enhancing technologies.

Private equity activity also slowed. PE investment fell to $1.86 billion across 23 deals, compared with $2.99 billion over 25 deals a year earlier.

Financial services remained the largest PE destination, attracting $852 million despite a 51.6% year-on-year decline. Consumer goods emerged as the fastest-growing segment, with investment jumping to $252 million from just $20 million in 2023, while healthcare continued to draw steady interest, rising to $539 million from $438 million.

The report said the pullback reflects a shift toward capital discipline, stronger fundamentals and sectors seen as more resilient in a prolonged period of global uncertainty.

Currently, Vietnam is home to over 4,000 startups, including two unicorns and dozens of near-unicorn enterprises, making the country an attractive hub for tech investment in Southeast Asia.