Over the past decade, Vietnam has made strides in economic modernization. However, the pace of innovation has not kept up with the country’s ambitions. The contribution of science, technology, and innovation to GDP remains limited, while institutional and policy frameworks still lack the flexibility and effectiveness needed to support high-impact innovation.

Prime Minister Pham Minh Chinh’s recent engagements during the 16th Annual Meeting of the New Champions of the World Economic Forum in Tianjin underscore Vietnam’s commitment to accelerating this transformation, with meetings including Cisco’s Asia Pacific leadership and Foxconn Industrial Internet executives discussing manufacturing and AI collaboration.

Our Founding Managing Partner Yinglan Tan also had the opportunity to meet with the PM—highlighting Vietnam’s recognition of the venture capital firm’s significant contributions to the country’s startup ecosystem through investments in companies like Logivan and Finhay. During this meeting, PM Chinh shared Vietnam’s newly approved list of 11 strategic technology sectors and demonstrated the government’s commitment to fostering deeper partnerships with venture capital firms to accelerate the country’s innovation agenda [6].

To address these constraints, the Vietnamese government is accelerating reforms.

Shifting focus to private enterprise, redefining the innovation ecosystem

A key shift involves moving from a state-led innovation model to one where businesses and private enterprises play a central role. New policy initiatives aim to support this transition, including proposed amendments to the Law on Science and Technology, improvements in administrative procedures, and the key tool introduction of preferential loans, tax incentives, venture capital, and regulatory sandboxes for innovative enterprises.

Policy reforms underway

The amendment of the Law on Science, Technology, and Innovation is in progress to:

• Decentralize authority
• Streamline administrative procedures
• Digitize R&D and innovation processes
• Embed businesses as innovation hubs

High-Tech Industrial Priorities

In this context, innovation is more than a policy priority—it is a strategic imperative. By embedding technology and digital capabilities across all sectors of the economy, Vietnam hopes to boost productivity, enhance global competitiveness, and lay the foundation for becoming a high-income nation in the coming decades.

Vietnam is strategically prioritizing 11 sectors essential to global competitiveness. Specifically, Prime Minister Pham Minh Chinh has signed Decision No. 1131/QD-TTg, dated June 12, 2025, officially issuing the List of Strategic Technologies and Strategic Technology Products.

The list outlines key technology categories as follows:

(1) Artificial Intelligence, Digital Twins, and Virtual/Augmented Reality: Six product groups, including Vietnamese language models, virtual assistants, specialized AI, analytical AI, digital twins, and Metaverse technologies.

(2) Cloud, Quantum, and Big Data: Comprises cloud computing services, quantum computing and communication technologies, and large-scale data centers.

(3) Blockchain: Includes digital assets, cryptocurrencies, digital currency, blockchain infrastructure, and traceability systems.

(4) Next-Generation Mobile Networks (5G/6G): Covers ORAN-compliant radio access network equipment, core network solutions, and high-speed IP transmission systems.

(5) Robotics and Automation: Encompasses autonomous mobile robots, industrial robots, advanced food processing technologies for agro-forestry-fishery products, and post-harvest quality preservation systems.

(6) Semiconductors: Focused on specialized chips, including AI and IoT chips.

(7) Advanced Biomedical Technologies: Includes next-gen vaccines, gene editing for medical and agricultural use, and cell therapies such as stem and immune cells.

(8) Energy and Advanced Materials: Encompasses small modular nuclear reactors, lithium-based and solid-state batteries, and advanced materials.

(9) Rare Earth, Marine, and Subsurface Technologies: Includes technologies for rare earth assessment and processing, smart geological exploration, deep-sea resource exploitation, and offshore energy systems.

(10) Cybersecurity: Covers firewalls, intrusion detection/prevention, and security solutions for critical infrastructure and national databases.

(11) Aerospace Technologies: Includes low-orbit satellites for remote sensing and telecommunications, satellite control ground stations, and unmanned aerial vehicles (UAVs).

In its pursuit of long-term, sustainable development, Vietnam is placing innovation at the heart of its economic strategy. Facing the looming challenge of the middle-income trap, the country recognizes that traditional growth models are no longer sufficient. Instead, technological advancement and digital transformation have emerged as the key levers for breakthrough development in the new growth cycle.

What This Means for Venture Backable Opportunities in Vietnam

Vietnam’s strategic technology priorities create compelling venture opportunities that extend beyond government policy. The $2.3 billion invested across 141 deals in 2024 reflects a maturing ecosystem where successful companies like MoMo and VNG have proven that Vietnamese startups can achieve unicorn status by solving local problems with globally defensible solutions.

1. Hyperlocal Innovation with Global Defensibility

The most compelling opportunities emerge from Vietnamese startups that build strong competitive moats through deep local market understanding while creating globally defensible business models. Finhay exemplifies this approach perfectly—rather than simply offering another investment app, they became Vietnam’s first fintech to acquire a securities brokerage license through their 18-month acquisition of VNSC [1].

This strategic move created multiple layers of defensibility: regulatory barriers to entry, proprietary technology integration, and comprehensive financial services capabilities that competitors cannot easily replicate. Finhay’s founder Huy Nghiem understood that in Vietnam’s heavily regulated financial sector, owning the infrastructure rather than partnering creates sustainable competitive advantages.

Their acquisition strategy transformed them from a wealthtech startup into a comprehensive digital investment platform with regulatory moats that protect against both local and international competition.

2. Government-Aligned Sectors with Proven Technology Applications

Vietnam’s strategic technology sectors offer significant opportunities where AI, automation, and digital transformation create immediate business value. Logivan demonstrates how AI-powered platforms can address massive market inefficiencies—their truck-matching technology tackles Vietnam’s fragmented logistics industry where 90% of trucking companies have fewer than 5 trucks and empty return rates exceed 70% [2]. By leveraging AI-powered pricing, real-time cargo tracking, as well as AI agents for drivers and shippers, Logivan creates value for both shippers and drivers while building network effects that strengthen with scale.

The electric vehicle sector presents similar opportunities as Vietnam pushes toward sustainable transportation, with startups developing EV charging infrastructure and fleet management solutions for the country’s rapidly growing delivery economy.

AI agents represent another frontier, particularly in customer service and business automation, where Vietnamese companies can build solutions tailored to local languages and business practices before expanding regionally.

3. Strategic Corporate Investment from Asian Partners

The most significant trend reshaping Vietnam’s venture landscape is the influx of strategic corporate investment from Korea, Japan, Singapore, Hong Kong, and China, creating new pathways for both funding and exits.

Korean conglomerates lead this charge, with SK Group investing $3.5 billion in Vietnamese companies including Vingroup, Masan, Pharmacity, and Imexpharm, while Samsung has committed over $23 billion with an additional $1.2 billion for next-generation display manufacturing [3]. Japanese corporations like Mitsubishi Research Institute are actively seeking Vietnamese startups creating social impact, with Japanese investors already backing unicorns like VNPay and MoMo [4].

Chinese tech giants Alibaba and Tencent have invested over $26 billion across Southeast Asia, with Alibaba’s $2 billion Lazada acquisition and Tencent’s $1.2 billion Go-Jek investment demonstrating their regional ambitions [5]. Singaporean sovereign wealth funds Temasek and GIC provide patient capital and regional market access, while maintaining Singapore’s position as Southeast Asia’s leading startup investment destination.

This corporate investment trend creates multiple advantages: strategic partnerships that accelerate market entry, operational expertise that improves execution, and clear exit pathways through acquisition by regional players seeking Vietnamese market presence.

References

[1] Paulo Joquino. “Behind Vietnam’s first fintech acquisition of a securities brokerage.” Insignia Business Review. April 3, 2025.

[2] Insignia Ventures Partners. “Logivan – Vietnam’s AI-powered truck-matching platform.” Portfolio.

[3] VNA. “South Korean firms plan to expand investment in Vietnam.” VnExpress International. February 21, 2025.

[4] Bich Thuy. “Japanese investors tap into startups.” Vietnam Investment Review. September 18, 2023.

[5] Jon Russell. “Alibaba and Tencent are carving up Southeast Asia’s startup ecosystem.” TechCrunch. July 22, 2017.

[6] Vietnam News Agency. “PM meets with global tech corporations, investment fund in Tianjin.” Vietnam News. June 25, 2025.