In a recent report by DealStreetAsia and Enterprise SG, Vietnam was highlighted as one of the top three Southeast Asian countries dominating the equity funding landscape.
Many may be curious about how Vietnam maintains this position and what factors contribute to its attractiveness in the current environment. In an interview with e27, Hieu Vo Tran Dinh, Deputy Director at Dragon Capital, shared insights on why Vietnam is a favorable destination for investors.
Hieu pointed out two key factors: attractive valuation and a rapid recovery from the COVID-19 pandemic.
He highlighted that Vietnamese startups offer attractive valuations, which are beneficial for both startups and investors. This disciplined approach to valuation has led to a growth in Series A round valuations in Vietnam, making it a compelling market for investment.
Vietnam’s speedy recovery from the pandemic has also contributed to its investment attractiveness. The country’s economy has shown resilience, with positive GDP growth and a surge in entrepreneurial activity.
Additionally, Vietnam’s government initiatives to promote innovation and entrepreneurship, such as the National Innovation Center, have made the country an appealing destination for investment.
Reflecting on the lessons learned from Vietnam’s startup ecosystem, Hieu emphasized the importance of government support, disciplined valuations, and a focus on solving local problems. He also highlighted the strong sense of community in Vietnam’s startup ecosystem, where founders and investors collaborate to support each other’s success.
As local startups adapt to the current challenges, they are focusing on practical metrics like revenue and cash flow to ensure sustainable growth.
Dragon Capital, a fund management firm active in Vietnam’s startup ecosystem, sees fintech as a promising sector, along with SaaS for SMEs. Hieu noted that Vietnam’s SMEs are receptive to new ideas and services, creating opportunities for innovative businesses.
Overall, Vietnam’s combination of attractive valuation, rapid recovery from the pandemic, and government support for innovation make it an appealing destination for investors.
Image Credit: Tron Le on Unsplash
This article was first published on April 18, 2023
The post Attractive valuation, quick COVID-19 recovery keep Vietnam attractive for investors: Dragon Capital’s Hieu Vo Tran Dinh appeared first on e27.