On December 19, 2022 in Hanoi, the Vietnam National Innovation Center (NIC), the Ministry of Planning and Investment in collaboration with Golden Gate Ventures Investment Fund organized the Forum of Innovative Startup Investment Funds. Vietnam 2022 (Vietnam Venture Summit 2022) with the theme “Global capital flows”.
Vietnam Innovative Startup Investment Fund Forum is an annual conference chaired by the Ministry of Planning and Investment, co-organized by the National Innovation Center and Golden Gate Ventures Investment Fund to connect the ecosystem to the world. Southeast Asia's innovative start-ups with the international and regional investment funds community.
This year's forum is honored to welcome leaders of central departments, ministries, leaders of some localities, international organizations, and hundreds of regional and international investment funds. In addition, the forum was attended by hundreds of delegates who are representatives of the subjects of the Institute - School system, the incubator, innovation support and mentoring networks, and experts. intellectuals in different countries.
Speaking at the forum, Minister of Planning and Investment Nguyen Chi Dung emphasized: “We will discuss and clarify the picture of innovative start-up investment flows in the world and in Vietnam. , technology fields that attract investment, as well as propose policies and solutions to further promote investment activities for innovation and start-up in Vietnam”.
Global capital movement
Global capital movement was selected as the topic for this year's forum in the context of profound changes in global investment trends influenced by geopolitical fluctuations and the possibility of recession existing in many economies. big. The movement of investment capital has been taking place strongly between regions and countries, in which investment opportunities are becoming more and more difficult for both startups and investors.
According to analysis by Crunchbase News, total global venture capital in the third quarter of 2022 was $81 billion, down $90 billion (53%) year-over-year and $40 billion (33%) quarter-on-quarter. In Southeast Asia, the innovative startup investment market attracted US$3.72 billion in the third quarter of 2022, down 36.4% over the same period last year and down 22% compared to the second quarter of 2022.
Although the total investment value decreased, the Southeast Asian market is still considered to be potential due to a number of key factors such as: The growth rate of the region is expected to remain at 4-5%/year; Large market size with 680 million people; Extensive internet coverage, the total value of goods of the digital economy is predicted to reach 200 billion USD in 2022, 3 years earlier than previous predictions. Southeast Asia continues to see growth in the number of Internet users with 20 million new users by 2022, bringing the total number of Internet users to 460 million.
Mr. Vinnie Lauria, Founder and CEO of Golden Gate Ventures, said: “In the first decade of the Southeast Asian startup ecosystem, Singapore and Indonesia were the leading growth drivers, with Singapore being among them. In terms of financial and human resources, Indonesia offers a huge domestic market. By 2022, Vietnam will be the third pillar of this golden triangle, offering the perfect combination of top tech talent, an inherently Vietnamese startup culture and a growing domestic market. fast. Putting these factors together explains why more and more global investors are betting big on Southeast Asia.”
The region continues its strong momentum thanks to higher domestic demand as more countries open up while China's COVID-19 zero policy and the Russia-Ukraine war disrupted global supply chains, causing an energy crisis, thereby creating new opportunities for Southeast Asia.
According to the World Economic Outlook for 2022 from the International Monetary Fund (IMF), the emergence and development of Asia is predicted to witness the highest GDP growth of 4.9% in 2023 among the key global regions, including Europe, America, Latin America and the Middle East. The region's openness to trade, increasing levels of education, an increasingly skilled workforce, a young population, and the combined high mobility of regional supply chains have transformed Southeast Asia. becoming an attractive manufacturing hub in sectors as diverse as electronics, automotive, pharmaceuticals and textiles, and a hotbed for digital innovation.
In addition, Southeast Asia has entered into many trade agreements and all offer great opportunities to reach both in Asia, Europe and North America. The Regional Comprehensive Economic Partnership (RCEP) coming into force, together with the recently signed ASEAN investment facilitation mechanisms and policies, are expected to help promote FDI in the region sustainably. more stable in the medium and long term.
Southeast Asia startup golden triangle
One of the reasons that Southeast Asia continues to have long-term potential is its unique mix of markets. In particular, the "Golden Triangle of Start-up" Vietnam - Singapore - Indonesia is emerging and becomes a strong growth engine in the coming time. The "Southeast Asian Startup Golden Triangle" report by Golden Gate Ventures notes that the "symbiosis" of Singapore, Indonesia, and Vietnam markets will open up the next growth opportunity for Southeast Asia.
According to Golden Gate Ventures, Singapore plays an important role as a “connected marketplace” in Southeast Asia, responsible for pioneering and leading the innovative startup ecosystem. Lion Island also ranks second in the Global Talent Competitiveness Index, has stable national leadership with a long-term vision and a highly educated population. These factors combined make the country the largest recipient of FDI inflows in Southeast Asia.
With the advantage of being the most populous country in Southeast Asia, Indonesia offers a huge growing consumer market that is mobile and digitally savvy, especially in the e-commerce segment. . COVID-19 as a catalyst has brought about an overnight digital transformation that will boost e-commerce growth in Indonesia far beyond pre-pandemic levels, a valuable asset that makes Southeast Asia is becoming more and more attractive.
Now, Vietnam has been participating in the “Southeast Asian Startup Golden Triangle” by bringing to a young, vibrant domestic market with great tech talents and constant innovation. The opportunity from this golden triangle is hard to replicate anywhere else in the world and the strength of the Singapore-Indonesia-Vietnam trio will make Southeast Asia a magnet for global investment. bridge.
Vietnam – A bright spot to attract investment
Vietnam is currently rated as Southeast Asia's newest gem and the small country's rise is the result of the market's attractiveness to investors, as well as support from the government. government with the startup ecosystem.
According to the Vietnam National Innovation Center (NIC), Vietnamese startups have raised a record $1.4 billion across 165 deals in 2021, up 1.6 times from the previous year. 894 million USD and 126 transactions in 2019. This shows that trading activity in the market has improved significantly, regaining momentum after a slump due to the COVID-19 pandemic. This growth momentum will continue into 2023 with a projected GDP of 6.7% in 2023.
Some of the factors that make Vietnam a bright spot for investment include political stability, a young and highly educated workforce, developed infrastructure, digital skills and the ability to In addition, Vietnam is considered a "good land" for high-quality FDI inflows, large international enterprises are looking for investment opportunities to diversify supply chains and limit over-dependence on the Chinese market. Vietnam becomes one of the brightest candidates to welcome this capital flow.
Vietnam is at an important turning point in its economic development. In the global macroeconomic picture, Vietnam's position in the region, the impacts of COVID-19 and the trend of investment funds to thrive have created a favorable context for Vietnam to occupy an outstanding position. turn on.
At the forum, the committed investment capital of 39 investment funds in the three years of 2023-2035 is 1.5 billion USD and the total value of creative startup investment in Vietnam in this period is expected to reach 5 billion USD. .
Speech Matching – Bridge between startups and investment funds
In addition to thematic sessions and seminars with experts and influential speakers bringing valuable information and useful information, Speed Matching program - a space to support startups to meet and connecting with more than 30 domestic and international investment funds also take place within the framework of the Vietnam Innovative Startup Investment Fund Forum 2022.
Speed Matching will be divided into many 1-to-1 meeting sessions, in which, each startup will have the opportunity to connect directly with 3 investment funds. The organizers will rely on the information of each startup to connect with the most suitable investment funds.
Speed Matching is the bridge between startups and potential investment funds, to help startups share business ideas, receive advice from investors' perspective, access capital raising opportunities, and open new business opportunities. market wide.
The Vietnam Innovative Startup Investment Fund Forum brought a multi-dimensional perspective from investment funds on the startup ecosystem of Vietnam, Southeast Asia and the world. Here, experts and businesses share candid views on investment, create a close relationship between investment funds and businesses, and propose policies for the Government of Vietnam to open up capital. venture capital, creating a favorable and transparent investment environment, promoting investment activities for innovative start-ups in a sustainable direction.
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