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.
The recent interest shown by Big Tech to set up presence in Vietnam provide a great opportunity to the country, according to Bobby Liu, Venture Partner at Vietnam-headquartered VC firm Touchstone Partners.
“Given the recent interest by Big Tech to establish presence in Vietnam, this can only augurs well for the technology sector in Vietnam; a great opportunity to propel into the lucrative high-end manufacturing in chips and fabrications, in the process elevating the overall talent base in Vietnam,” he told TNGlobal in a recent email interview.
His comment came as Big Tech such as Meta Platforms Inc, Apple Inc, Alphabet Inc’s Google plans to expand in the country.
Last month, Meta said it will expand manufacturing of its latest mixed reality device Quest 3S to Vietnam. The Facebook’s parent company will also launch a credit-earning artificial intelligence (AI) literacy course next year at the Vietnam National University.
It was reported that Google plans to build a hyperscale data center. Earlier this year, iPhone maker Apple also pledged to increase spending on its Vietnam suppliers, state media reported.
The government also said Elon Musk’s SpaceX plans to invest $1.5 billion while US chip maker Nvidia’s Chief Executive Officer Jensen Huang has reportedly expressed plans to set up a base in Vietnam.
Liu said the rise in the AI space is an opportunity to showcase the talent pool of the much-touted Vietnam talent pool in technology.
“In under two years, Vietnamese developers and data scientists have been ranked amongst the top innovators. Known for being a country that leapfrogs technological advancement, this is yet another opportunity for that,” 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.
Vietnam is seen as a rising star in the Southeast Asian tech landscape.
Liu, who is also the founder of co-working space and incubator Hub.IT, actively mentors and advises startups in Southeast Asia. He is also an accredited mentor for the Google Developer Launchpad Accelerator and other startup programs.
“From various reports such as GenAI Fund, Vietnam is ranked second to Singapore in terms of startup output, with a caveat that many AI-led startups domiciled in Singapore are actually from Vietnam,” he said.
“While it may seem sudden, it’s actually been in the works since 2005, where some of the pioneer technology-based companies were established,” he noted.
In the interview, Liu also shared the opportunities and challenges, the funding environment, emerging trends in the tech ecosystem in Vietnam, among others.
Below are the edited excerpts:
How do you see the current state of Vietnam’s technology and startup ecosystem?
Given the recent interests by Big Tech to establish presence in Vietnam, this can only augurs well for the technology sector in Vietnam; a great opportunity to propel into the lucrative high-end manufacturing in chips and fabrications, in the process elevating the overall talent base in Vietnam.
The rise in the AI space is an opportunity to really showcase the talent pool of the much-touted Vietnam talent pool in technology. In under two years, Vietnamese developers and data scientists have been ranked amongst the top innovators. Known for being a country that leapfrogs technological advancement, this is yet another opportunity for that.
Where does it stand among other countries in Southeast Asia? What key trends are driving growth?
From various reports such as GenAI Fund, Vietnam is ranked second to Singapore in terms of startup output, with a caveat that many AI-led startups domiciled in Singapore are actually from Vietnam.
While it may seem sudden, it’s actually been in the works since 2005, when some of the pioneer technology-based companies were established.
Some observers opined that the Vietnam tech ecosystem is still a closed one and not many startups are expanding regionally. What’s your view on this?
It is true to a certain extent. It is no different from other tech ecosystems, by the way.
Let me explain: Most startups were established to solve local problems or disrupt outdated incumbent businesses, with ideas and use cases coming mainly from more tech-active ecosystems such as SV. Given that there are more than 10 countries in Asean, other countries like Thailand and Indonesia also have startups in similar verticals.
Expansion into the region hence become a lot harder and most of these startups end up focusing on their own domestic markets.
Even across Southeast Asia, less than 10 startups that are truly regional. It’s not so much a Vietnam anomaly, rather, a regional malaise. However, the AI trend will see many more AI-led startups from Vietnam expanding quicker and faster into the region, and even on a global level.
How is the funding environment in Vietnam? Vietnam has come into the limelight as one of the hottest markets for VCs and investment firms. Are there adequate funding for startups?
Like the rest of the region, Vietnam’s funding environment suffers similarly due to a slowdown of fund managers being able to raise new funds, like pre-covid. The fact that funding returns have been less than ideal, partly because of the wrong playbook (but that’s another conversation), the overall funding climate has been soft. Still, I believe that once fund managers are back on track with their raise, the attention to funding will shift to Vietnam.
Where are the opportunities? Are there any hot sectors? Are there any sector you think should be disrupted more by tech startups?
If I have to start from ground zero, I would zoom into areas of growth that will contribute towards Vietnam becoming an emerging economy, driven by the rise of the middle class. Areas like healthcare, consumer-centric products and services, finance, and real estate. One outlier will be HR-related companies. Without sounding too buzzy, I also believe Vietnam will lead in AI-based type of disruptions.
What are the challenges? How can the tech ecosystem in Vietnam be better? What are your suggestions?
Challenges will always be there but I believe these challenges can be overcome; it’s a function of time. Every ecosystem can be better, even in SV. I think if there’s a near term challenge, it is in the entire Southeast Asia ecosystem taking a good look at the playbook, and establish one that is the best fit for Southeast Asia. I think the reality of Southeast Asia is that startups are fast-growing SMEs, not unicorns, at least not in the timeframe of fund’s lifecycle.
You have been actively mentored and advised startups in Southeast Asia. How do you see the tech entrepreneurs in Vietnam? What are their strengths and weaknesses?
Yes, I continue to be active in mentorship duties. In fact, I was just in the recently concluded Vietnam Google for Startup AI Accelerator program. In the dozen of years that I have been in the ecosystem, I have seen huge changes in the mindset of these quality founders.
These founders are fast in embracing opportunities and some even invent opportunities. The strength of such founders, where speed and passion are concerned, have also a couple of weaknesses. One of them is that they get bored rather easily.