The shifting global investment climate took a toll on Vietnam’s startup ecosystem, with venture funding declining 52.7 per cent in the first half of 2024 compared to H1 2023, a Tracxn report revealed.
The total funding raised by Vietnam-based startups was down to US$46.5 million in H1 this year, compared to US$98.5 million in H1 2023 and US$77.4 million in H2 2023.
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According to Tracxn‘s Geo Semi-Annual Report: Vietnam Tech H1 2024, seed-stage funding decreased 29 per cent to US$5.2 million in H1 this year from US$7.4 million in H2 2023 and a 23.5 per cent decline from US$6.8 million in H1 2023.
Early-stage investments in Vietnam stood at US$41.3 million, a 41 per cent decrease from the US$70 million raised in H2 2023 and a 53.4 per cent drop from US$88.6 million in H1 2023.
No late-stage funding was reported in H1 2024, mirroring the trend from H2 2023, whereas US$3 million was raised in H1 2023.
Transportation and logistics tech, edutech, and retail emerged as the top-performing sectors in H1 2024. Companies in the transportation and logistics tech sector witnessed a 940 per cent spike in funding from US$3 million in H1 2023 to US$31.2 million in the first six months of 2024. The edutech segment also recorded a 280 per cent rise in funding from US$2.5 million in H1 2023 to US$9.52 million in H1 2024.
No new unicorns were created in Vietnam in H1 2024, continuing a similar trend in the previous period. The M&A landscape also contracted, with only two acquisitions in H1 2024 compared to three in H1 2023.
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Key players such as CyberAgent Capital, Insignia Ventures Partners, and Genesia Ventures drove investment activity in Vietnam’s tech ecosystem. Northstar Ventures, Ansible Ventures, and Monk’s Hill Ventures also stood out as significant contributors to the investment landscape in H1 2024.
Despite the funding challenges, Vietnam’s tech startup ecosystem continues to exhibit resilience, driven by strong performances in key sectors and strategic regional investments.
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