Vietnam’s startup market has attracted a growing number of Korean venture capital firms. South Korean investors say Vietnam has a bustling startup ecosystem, and Vietnamese and Korean businesses share certain similarities.

 A seminar during "Vietnam Startup Roadshow in Korea 2019" 

The Vietnam Tech Investment Report produced by ESP Capital and Cento Ventures shows that Korean firms were the most active investors during the year’s first half, having participated in almost 30% of the deals with a total capital of 246 million USD.

The “Vietnam Startup Roadshow in Korea 2019” was held in Seoul and Busan recently to inform Korean investors of Vietnam’s improved startup ecosystem.

In July Nextrans invested in Base.vn, a Vietnamese Software-as-a-Service (SaaS) platform. Since it entered Vietnam in 2015, Nextrans has poured tens of millions of USD into 10 Vietnamese startups, including Luxstay, Jamja, Ecotruck, and Leflair.

STIC Ventures of STIC Investment is another major player from South Korea. STIC Investment eyes SMEs while STIC Ventures focuses its investment on technology startups. STIC’s investment list includes Tiki, Cammsys Vietnam, and Nanogen Biopharmaceutical.

South Korean investors say Vietnam has a bustling startup ecosystem, and Vietnamese and Korean businesses share certain similarities. The Vietnamese government has offered incentives to venture firms and startups.

The “Vietnam Startup Roadshow in Korea 2019” drew 200 venture firms. During workshops, seminars, and networking events, Vietnamese startups sought investment from South Korean venture firms and financiers. Startup support centers, management agencies, and policy makers discussed experience in startup models and got a clearer view of Vietnam’s startup ecosystem.

Korean investors say they will expand their investment portfolios into lucrative sectors like mobile services, fintech, and bio and agricultural technology. ESP Capital estimates that capital invested in Vietnam in fiscal year 2019 will reach 800 million USD.