Vietnam Venture Capital Alliance (VVCA) was officially established, with the participation of 17 members, within the framework of the National Innovative Entrepreneurship Day (Techfest Vietnam 2020) which was underway recently in Hanoi.

Fund representatives involving in the Vietnam Venture Capital Alliance
at the launching ceremony (Photo courtesy of ThinkZone)

The newly-established alliance consists of 17 members, namely ThinkZone Ventures, 500 Startups, CyberAgent Capital, Vietnam Investment Group, Openspace Ventures, Access Ventures, Quest Ventures , Genesia Venture, Monk's Hill Ventures, eWTP Capital, Teko Ventures, VIC Partners, Venturra, Next100, Nextrans, FEBE Ventures, Duane Morris.

The alliance aims to help increase the efficiency in attracting capital, introducing investment opportunities, and providing support to foreign investors, with a focus on three major tasks, including issuing annual summary reports on investment activities in Vietnam, holding a dialogue with the Government on investment in innovative start-ups and propose policies aimed at improving the startup investment environment, and acting as an official focal point for investment in the ecosystem to link with investment networks.

The Vietnam Investment Fund Alliance is a non-legal entity, consisting of investment funds operating together, sharing investment knowledge, market information, as well as proposing solutions for investment.

Vietnamese startup ecosystem has become dynamic. Last year, the country ranked third in Southeast Asia in the number of active startups, with more than 3,000 startups across a variety of fields.

Notably, the nation ranked second in Southeast Asia in attracting venture capital investment, surpassing Singapore for the first time, and just coming behind Indonesia.

In particular, Vietnam's success in containing the COVID-19 pandemic is seen as a powerful driving force behind the stronger development of the nation's startup ecosystem.

Therefore, Vietnam has become an increasingly attractive destination for investment funds around the world.

However, there still exist major barriers that many investors remain hesitant to enter the Vietnamese market, such as a startup that lacks fundamental knowledge about investment, or legal barriers to foreign investment funds.