Editor’s note: Discover Vietnam Tech is a new series where we dive deep into the vibrant and rapidly growing tech and innovation ecosystem of Vietnam. In this collection of interviews and editorials, we will spotlight key players—entrepreneurs, innovators, and thought leaders—who are driving the country’s emergence as a global tech hub.
Through candid conversations with industry leaders, we aim to explore the opportunities, challenges, and breakthroughs shaping Vietnam’s tech landscape. From emerging technologies like AI and blockchain to the nation’s efforts to nurture homegrown talent and innovation, Discover Vietnam Tech will give you exclusive insights into how Vietnam is positioning itself at the forefront of the global technology scene.
Stay tuned as we highlight the voices and visions of those at the heart of Vietnam’s tech revolution, offering a unique window into the country’s potential as a leader in innovation and digital transformation.
Contrary to the perception that Vietnam’s tech ecosystem is a closed one, tech startups in the country are demonstrating a growing ambition to expand their reach and compete on a global scale, according to Vietnam-based VC firm Ascend Vietnam Ventures (AVV).
“While there might still be many startups focused on the domestic market, we are increasingly seeing founders who think bigger, build for the world, and expand beyond Vietnam’s borders,” AVV Co-Founder and General Partner Binh Tran told TNGlobal.
“It’s just the beginning, and we expect this trend to continue as more capital and talent pour into the ecosystem,” he said in an interview.
Those observers might not have “boots on the ground”, he said. “…so I can understand why some might think Vietnam’s ecosystem is still somewhat closed. But I would argue that perception is changing rapidly.”
“For example, we invested in ELSA, a Vietnamese speech recognition company that is now operating in 70 countries. Trusting Social, another investment of ours, provides credit scores for over 1 billion people across Vietnam, Indonesia, India, and the Philippines. MFast started in Vietnam as an agent-based banking platform and has already expanded to the Philippines,” Tran pointed out.
On top of that, the VC firm also backed Ho Chi Minh-based companies like Sky Mavis, PowerTrade, Superfine, and many others whose go-to-market strategy is global right from the start, he added.
Vietnam’s tech ecosystem has witnessed significant growth in recent years, capturing the attention of global investors. In 2023 alone, the total investment in Vietnamese startups has amounted to $529 million.
As of 2024, Vietnam has eight unicorns, solidifying its position as one of the fastest-growing tech ecosystems in Southeast Asia. These unicorns include well-known names like VNG, MoMo, VNLife, Sky Mavis, Axie Infinity, VNPay, Tiki, and VNG Cloud.
Some experts also lauded Vietnam as a rising star in the Southeast Asian tech landscape.
According to Tran, domestically, fintech and edtech sectors are also booming.
“Fintech startups are addressing the large unmet demand for borrowing while edtech companies, in particular, have a unique potential in Vietnam because of the country’s cultural emphasis on education,” he noted.
“Families here prioritize education and spend a significant portion of household income on it. This creates a fertile market for edtech solutions that can provide better, more accessible learning experiences,” he said.
As for AVV, Tran said the VC firm focuses on sectors where Vietnam’s strengths can drive significant growth, both locally and globally.
“One area we’re particularly focused on is fintech, but with a local twist,” he said.
“For example, we’ve invested in TechCoop, a company that helps farmers in Vietnam with financing. The agricultural sector here is so large that TechCoop is experiencing explosive growth without needing to expand beyond Vietnam. It’s a great example of how some sectors can reach VC scale by focusing on solving big, domestic challenges,” he added.
Beyond fintech, Tran said the firm also focuses on enterprise software and AI because the talent and cost advantages in Vietnam allow startups to build solutions that can compete globally.
Headquartered in Ho Chi Minh City, AVV is an early-stage venture capital firm. Prior to AVV, Tran was a General Partner for 500 Startups Vietnam and co-founded Klout, the Kleiner Perkins-backed social analytics company in San Francisco.
In the interview, Tran also shared his views and suggestions on how to improve the tech ecosystem in Vietnam and AVV’s fundraising plan, among others.
Below are the editor excerpts:
What do you think about Vietnam’s tech ecosystem in recent years? Some observers opined that it is still quite closed, the tech startups in the country still operate more within the country and not really expanding regionally. What are your thoughts on this?
Those observers might not have “boots on the ground” so I can understand why some might think Vietnam’s ecosystem is still somewhat closed. But I would argue that perception is changing rapidly.
For example, we invested in ELSA, a Vietnamese speech recognition company that is now operating in 70 countries. Trusting Social, another investment of ours, provides credit scores for over 1 billion people across Vietnam, Indonesia, India, and the Philippines. MFast started in Vietnam as an agent-based banking platform and has already expanded to the Philippines.
On top of that, we’ve backed Ho Chi Minh-based companies like Sky Mavis, PowerTrade, Superfine, and many others whose go-to-market strategy is global right from the start.
While there might still be many startups focused on the domestic market, we are increasingly seeing founders who think bigger, build for the world, and expand beyond Vietnam’s borders.
It’s just the beginning, and we expect this trend to continue as more capital and talent pour into the ecosystem.
From a VC’s perspective, where are the opportunities you see in Vietnam? Is there any hot sector? Is there any sector(s) that should see more disruption or innovation?
Vietnam’s tech ecosystem is thriving, thanks to its strong, low-cost technical talent and the removal of foreign ownership limits in many sectors, making it an attractive place for foreigners to establish businesses.
The country ranks fourth globally for mobile app development, with successes like Amanotes reaching over 4 billion downloads, highlighting the strength of the mobile gaming sector, which remains hot.
In addition to mobile gaming, Web3 and blockchain are generating significant global interest.
We have invested in companies like Sky Mavis and PowerTrade, and both are leading the charge in building globally scalable products. Founders in these sectors, especially in Vietnam, are building with a global mindset from day one, aiming for markets far beyond the country’s borders.
Domestically, fintech and edtech are also booming. Fintech startups are addressing the large unmet demand for borrowing while edtech companies, in particular, have a unique potential in Vietnam because of the country’s cultural emphasis on education.
Families here prioritize education and spend a significant portion of household income on it. This creates a fertile market for edtech solutions that can provide better, more accessible learning experiences.
Additionally, Vietnam’s ecosystem benefits from its diversity. Many founders come from all over the world, bringing international experience and perspectives, which strengthens innovation.
This diversity helps founders tap into global markets much faster.
On top of these sectors, I believe there’s also room for more disruption in enterprise software and AI, as Vietnam continues its rapid digital transformation.
Is there any particular sector(s) AVV focuses on? and why?
We focus on sectors where Vietnam’s strengths can drive significant growth, both locally and globally. One area we’re particularly focused on is fintech, but with a local twist.
For example, we’ve invested in TechCoop, a company that helps farmers in Vietnam with financing. The agricultural sector here is so large that TechCoop is experiencing explosive growth without needing to expand beyond Vietnam. It’s a great example of how some sectors can reach VC scale by focusing on solving big, domestic challenges.
Beyond fintech, we also focus on enterprise software and AI because the talent and cost advantages in Vietnam allow startups to build solutions that can compete globally.
While technology adoption in Vietnam is still early, we believe it’s inevitable, and this opens up significant opportunities in many different sectors.
We are excited to back startups that are positioned to capitalize on this growing digital transformation, no matter the industry.
How can Vietnam’s tech ecosystem be more vibrant? Based on your observations, what are the strengths the ecosystem has? What are the areas that need to be improved?
The strength of Vietnam’s ecosystem lies in its talents—there is a growing number of young, highly-skilled engineers and entrepreneurs who are eager to innovate.
Another strength is the cost-efficiency, which allows startups to build and scale without burning through cash too quickly. That said, the ecosystem would benefit from stronger regional and international connectivity.
More cross-border partnerships and collaborations could bring in valuable expertise and help startups scale faster.
Another area for improvement is access to later-stage funding. Early-stage capital is increasingly available, but there’s still a gap when it comes to scaling companies at Series B and beyond.
Any suggestions for startups/entrepreneurs? both local and foreign investors, corporations, and government?
For startups, my advice is to think bigger—don’t just aim to be successful in Vietnam; look at how your solution can work across the region.
For investors, especially foreign ones, Vietnam is still somewhat under-explored compared to other markets in Southeast Asia, so there’s a lot of upside if you’re willing to get involved early.
For corporations, there’s an opportunity to partner with startups, especially in areas like digital transformation. Finally, for the government, continuing to create a favorable regulatory environment for startups and fostering international collaborations will be key to driving more innovation and growth.
How do you identify and support emerging tech talent in Vietnam?
We are very hands-on when it comes to identifying and supporting tech talent in Vietnam. Our team of 10 is entirely based here, so we’re deeply embedded in the local ecosystem.
What sets us apart is that we’re founders turned investors, having built and exited tech companies in the US. This gives us a unique perspective—we know firsthand the challenges of scaling a business, and we bring that experience to the founders we work with.
We leverage our extensive networks outside of Vietnam to connect founders with global opportunities, mentors, and resources. Whether we invest or not, we always try to help founders in any way we can.
In fact, we aim to be the first investor for founders, supporting them from the earliest stages of their journey. We pride ourselves on being accessible and friendly, so founders know they can come to us for advice or guidance at any time.
By combining our international experience with a deep local presence, we’re able to identify promising talent early and give them the support they need to grow, both in Vietnam and beyond.
What are the main challenges you’ve encountered when working with Vietnamese startups, and how have you overcome them?
A key challenge we’ve encountered is the gap in scaling expertise. Many Vietnamese founders excel in developing innovative solutions for local markets but often need guidance on structuring operations to grow regionally or globally.
To address this, we focus on building close relationships with founders, helping them develop the skills necessary to manage larger teams, navigate new markets, and adopt best practices for scaling—often through targeted mentorship and direct, hands-on involvement.
Another challenge is access to capital beyond the seed stage, particularly when it comes to Series A and later rounds. While early-stage funding is growing in Vietnam, many startups face challenges in accessing growth capital.
To help, we leverage our networks and relationships with international investors, connecting Vietnamese founders with the right partners as they scale.
Finally, navigating regulatory environments can be a roadblock, particularly for founders looking to expand outside Vietnam.
We work closely with founders to help them understand and overcome these challenges, drawing on both local expertise and international experience. We don’t just provide capital—we act as long-term partners, helping startups move from local successes to broader, sustainable growth.
Is AVV planning to raise more funds in the future?
Yes, we are planning to raise more funds. We’re currently deploying capital from our second fund and expect to complete the portfolio of around 30 companies next year.
Once that’s done, we’re aiming to close and start deploying from a third fund in the second half of 2025.
Based on the data we’re seeing from our portfolio’s growth, combined with the rapid development of Vietnam and the region, and Vietnam’s advantages in terms of low-cost, highly skilled tech talent, we believe raising a third fund would be a smart decision to capture value for our investors.
How is the deployment of its earlier funds?
Our first fund was fully deployed before we closed our second fund, which is a 2021 vintage. In that first fund, we were fortunate to invest in the seed stages of three unicorns, and we expect to hold onto those positions for a few more years.
That said, we’re seeing increasing distributions from fund 1 as we exit our positions in the other companies.
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