Key findings from the report:
1. Vietnam is seeing strong and resilient economic growth for investors, supported by robust engines
- Vietnam has experienced 6% annual real growth over last 10 years, outpacing peers and is expected to join World's top 25 economy in the next decade.
- Growth has been driven by export-oriented manufacturing and growing investment towards higher value products.
2. Its unique macroeconomic situation presents multiple opportunities for investors
- Vietnam is continuously gaining market share internationally in a context of supply chain repositioning. Leading global players are investing in manufacturing and delivery centers in Vietnam.
- Local market is growing very rapidly with the rise of the middle and affluent population and the development of T2 cities, opening new markets.
- Vietnam is in a super cycle of infrastructure investment.
3. Environment is supportive for private capital
- Government actively supports next economic breakthrough toward modernization, sustainability and innovation.
- Financial infrastructures are maturing (PE/VC landscape, stock exchange, blockchain, etc.) and provide more visibility on future liquidity.
4. Vietnam is at the forefront of the digital and AI revolution in Asia
- Vietnam’s digital economy reached $36B and is projected to maintain double-digit growth, with strong government backing (Resolution 57), private investment, and a robust talent pipeline, Vietnam is on track to become the second-largest digital economy in SEA, contributing 30% of GDP in the near future.
5. Vietnam offers multiple pathways for private capital to create value
- Multiple pathways for private capital: partner with local champions to expand regionally, fund the next wave of champions, consolidate/modernize traditional industries, grow underpenetrated sectors, infra/PPP, etc.
- Key success factors including leveraging local partnerships, investing in talent, building ecosystem, digital.
6. The market may have tightened, but deal-making stayed on course
- Vietnam’s innovation & private capital market recorded $2.3B in 2024 across 141 deals, with deal count remaining relatively stable in both VC and PE despite a decline in capital deployed, highlighting investors' continued engagement with Vietnam’s long-term potential.
7. Smaller deals made a notable comeback
- Early-stage VC activity showed signs of recovery, as $0.5M or smaller deals rebounded, reflecting sustained appetite for backing Vietnam’s next generation of startups.
8. Resilient capital deployment in mature and sizable opportunities
- Buyout transactions dominated, accounting for $1.7B of total PE investment, reflecting investor preference for mature, cash-generating businesses in a cautious environment.
- Mid-sized deals ($100M–$300M) showed strong resilience, with capital invested rising 2.7x to $700M and deal count increasing, signaling improving investor confidence in sizable transactions.
9. High-tech and sustainability sectors led the way forward
- Sectors like Business Automation led VC deal value growth (562% surge), reflecting Vietnam’s increasing focus on productivity-enhancing technologies.
- AI, AgriTech, and Green Tech sectors gained strong investor momentum, driven by digitalization, sustainability trends, and government support. AI funding surged 8x, while AgriTech grew 9x YoY.
10. Investor participation showed strength in VC and remained steady in PE
- Vietnam’s VC market attracted nearly 150 active investors in 2024, the highest since 2021, reflecting strong interest from domestic and regional players, especially Singapore and Japan.
- In PE, the number of active investors in Vietnam remained on par with the previous year, with non-domestic GPs and corporate investors remained key players.