The fulcrum for the digital economy
VinVentures Fund is a blockbuster name that was officially announced by Vingroup Corporation on October 28. Accordingly, the total assets of VinVentures Fund are up to 150 million USD with investment focus on Artificial Intelligence (AI); Semiconductor and Cloud Computing, high-tech products.
This is considered great news for the Vietnamese startup community. Mr. Ngo Duc Hai - Founder of Funzilla Vietnam Company - a business operating in the entertainment technology sector in Hanoi, pointed out the fact that capital flows for technology startups have been increasingly gloomy in recent times. Statistics from the market data platform Tracxn show that total funding for Vietnamese technology startups in the first half of 2024 decreased by 52.7% compared to the first half of 2023.
“This is the time when technology projects need to be accompanied more than ever. If they cool down, it will be difficult to revive the market,” said Mr. Hai.
With VinVentures, what he expects is not only to “quench the thirst” for capital for startups but also to create a strong driving force through a methodical and quick approach in the “Vingroup style”. He gave the example of technology projects in the Science and Technology Project Funding Program of the Vingroup Innovation Fund (VinIF) that have made the research community “take their hats off” because of the methodical appraisal process and fast disbursement speed, helping many projects to soon come into reality.
“For startups, speed is the most important thing because opportunities come and go very quickly. That is also the reason why many startups expect VinVentures to accompany them,” said Mr. Duc Hai.
From a broader perspective, Associate Professor Dr. Dinh Trong Thinh - an economic expert with many years of experience in the field of international finance - highly appreciated the steps taken by Vingroup and Mr. Pham Nhat Vuong when focusing on areas with great potential to develop Vietnam's high-tech industry.
“Artificial Intelligence, Semiconductors and Cloud Computing are the three fundamental fields of the high-tech era. If Vietnam wants to overcome the middle-income trap, it must build a digital economy with the above three pillars,” Associate Professor Dr. Dinh Trong Thinh affirmed.
He also expressed his belief that projects supported by VinVentures will help create a trend of digital technology development in Vietnam. “To overcome the middle-income trap, we must successfully build a digital economy and we need inspirational people like VinVentures,” the expert said.
Creating "resonance", increasing competitiveness for Vietnamese brands
From a companion perspective, Associate Professor Dr. Dinh Trong Thinh pointed out the advantage of VinVentures is Vingroup's multi-industry ecosystem. Startups will have the opportunity to connect with companies in many fields to receive advice, appraisal, and quality testing before going to market and then possibly becoming future customers.
“Good technology projects can even be applied to the group's spearheads like VinFast to create technological resonance, thereby increasing the competitiveness of Vietnamese electric cars,” Associate Professor Dr. Dinh Trong Thinh assessed.
Not only accompanying VinFast, with the strong network of relationships and resources of large corporations such as Vingroup, startups have many opportunities to meet and connect with other world-class businesses. If they “seize the opportunity” to grow, Vietnamese technology startups can even reach out to the region and the world.
In particular, with the open mindset of previous companion projects, the economic expert believes that VinVentures does not “tie” startups with exclusive terms, but on the contrary, can find more resources from other investment funds in the market. “With the Vingroup network, startups not only have access to the support of VinVentures but also of many other investment funds in the market. This alliance will help projects develop in a more sustainable and long-term manner, thereby making greater contributions to the country's industry,” the expert said.
According to the expert, VinVentures' $150 million in assets may just be the starting point. "With national spirit and a strong mindset, I believe Vingroup will be willing to invest more resources if the project's contributions are practical for the startup ecosystem as well as the Vietnamese industry," said Associate Professor Dr. Dinh Trong Thinh.
