According to the Vietnam Venture Capital Report 2025 published by DealStreetAsia, total investment into Vietnamese startups reached $494 million across 68 deals in 2024, down 8 per cent from the previous year. Capital inflows were increasingly concentrated, with investors from Singapore accounting for 39 per cent of total deals, while domestic investors contributed just under 20 per cent.

Speaking at an event in Ho Chi Minh City on January 29, Vinnie Lauria, founder of Golden Gate Ventures, said the current downturn reflects a structural reset rather than a cyclical slowdown. “Unlike the boom period of 2021, when capital flooded the market and valuations became irrational, investors have now returned to core principles: sustainability and capital efficiency,” he said, adding that “capital hasn’t disappeared; it is just becoming highly concentrated in proven business models.”

Lauria noted that despite these shifts, Vietnam remains at a disadvantage in a more competitive regional fundraising landscape. He described the ecosystem as, “playing a local game in a regional sport”, pointing to several structural constraints, including a limited international outlook, reluctance to hire foreign expertise, language barriers, and legal and foreign exchange restrictions that complicate cross-border operations.

"To address these challenges," Lauria said, "Vietnamese startups should consider regional expansion from an early stage, build cross-border teams, and place greater emphasis on product research and development, positioning themselves to compete more effectively for regional and global capital."

On valuation, Lauria stressed that survival and growth momentum matter more than prestige. He cited Uber’s early fundraising round, which valued the company at only around $6 million, contrasting it with cases where Vietnamese founders turned down $500,000 investments in pursuit of a $10 million valuation, only to eventually run out of runway and go bankrupt.

Nguyen Lan Anh, managing director of Endeavor Vietnam, a network to focuses specifically on helping Vietnamese startups scale beyond the domestic market, said Endeavor’s data shows that the most viable path for Vietnamese startups to scale is to expand beyond Vietnam’s borders.

“For startups with strong growth ambitions and the potential to achieve scale and impact, focusing solely on the domestic market is not enough. Companies need to target global markets. Technological advances are giving us the opportunity to do that,” Lan Anh said.

On this point, Lauria stated, “I am extremely optimistic about Vietnam’s people and its economy over the next five to 10 years. But I am concerned about capital. Unlike Singapore or Indonesia, where large corporations are willing to invest aggressively, corporate capital in Vietnam remains very limited. As a result, Vietnamese startups are compelled to look overseas for funding, and to achieve that, English is essential.”

Nguyen Thi Huong Giang, CEO of Tititada, offered a candid assessment of the ecosystem’s current state, noting that Vietnam still lacks sufficient links to form a fully developed startup ecosystem.

“A truly robust ecosystem requires close connectivity among founders, incubators, large enterprises – such as banks and conglomerates – and the active involvement of the government and policymakers in creating a conducive environment for entrepreneurship. While Vietnam is not short of passionate young entrepreneurs and startup spirit, they have yet to receive adequate support,” Giang said.

According to the Vietnam Venture Capital Report, the capital market landscape still shows several bright spots.

Vietnam has maintained its position among the top three Southeast Asian markets in terms of deal volume (after Singapore and Indonesia), underscoring the ecosystem’s continued attractiveness despite a challenging environment.

Around 60 per cent of investors believe investment activity in 2025 will remain stable or increase, signalling a cautious return of optimism. Fintech, retail, and healthcare continue to lead in terms of investment focus, while AI and semiconductors have emerged as the new buzzwords.