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Vietnam Attracts $2.3B Despite AI Market Setbacks

  • Writer
  • April 22, 2025
    Updated
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Key Takeaways

• Vietnam attracted $2.3 billion in private capital across 141 deals in 2024, defying global investment slowdowns.

• The nation recorded 7.1% real GDP growth in 2024, outpacing much of Asia’s economic performance.

• AI startup funding rose eightfold to $80 million, while agritech and greentech saw exponential growth.

• Vietnam’s economy is forecast to surpass $1.1 trillion by 2035, doubling in size through innovation-driven strategies.


Vietnam’s investment ecosystem demonstrated notable resilience in 2024, attracting $2.3 billion in private capital across 141 deals, according to the newly published Vietnam Private Capital & Innovation Report 2025.

Despite widespread global economic headwinds, Vietnam’s continued commitment to innovation, digital transformation, and ESG goals has positioned it as a high-growth investment destination in Southeast Asia.


Economic Resilience Anchors Capital Confidence

The report, collaboratively released by the Vietnam Private Capital Agency (VPCA), the National Innovation Center (NIC), and Boston Consulting Group (BCG), highlighted that Vietnam achieved a real GDP growth rate of 7.1% in 2024, outperforming many of its regional counterparts.


• The country’s economic expansion was supported by robust exports and increased domestic consumption.
• Pro-investment policies and regulatory reforms contributed to investor confidence.
• Medium-term forecasts project Vietnam’s economy to exceed $1.1 trillion by 2035.

This projection reflects more than just economic optimism—it indicates structural shifts in how Vietnam aligns its growth with emerging technologies and sustainability.


Tech-Forward Investment Drives Momentum

A defining feature of the report is Vietnam’s rapidly evolving tech sector. Capital deployment in next-generation technologies surged, with three sectors standing out:

Artificial Intelligence

AI startups in Vietnam experienced a funding boom in 2024.

Funding for AI startups surged eightfold year-on-year to US$80 million.

This growth signals a strong shift toward automation, data analytics, and machine learning capabilities as businesses and government bodies seek smarter infrastructure and services.

Agritech

Vietnam’s agritech industry saw a transformation due to food security concerns and digitalization demands.

Investments in agritech grew ninefold due to food security and digital supply chain needs.

Startups in this space are leveraging smart sensors, IoT, and blockchain to improve agricultural output and traceability—key priorities for both domestic supply and export.

Greentech

Vietnam’s focus on environmental sustainability continued to shape investor strategies.

Greentech investments more than doubled, driven by environmental, social, and governance (ESG) initiatives.

Efforts in renewable energy, carbon capture, and sustainable infrastructure were highlighted as primary funding areas.


Institutional Support Strengthens the Ecosystem

Vietnam’s ability to draw capital at this scale is closely tied to targeted government policies and multi-stakeholder collaboration. The NIC has facilitated public-private partnerships and innovation hubs, while the VPCA continues to improve transparency and market access.

The report emphasized that these entities are not merely facilitators but are helping set strategic direction for how capital is mobilized across critical sectors.


• Strong public-private collaboration has enabled effective startup scaling.
• Ongoing digital and legal reforms are lowering barriers for foreign investors.
• The innovation ecosystem is maturing rapidly with cross-border investor participation.


A Strategic Outlook for Long-Term Growth

While Vietnam’s current success is significant, the long-term view remains focused on building a resilient, innovation-led economy.

With continued support for ESG-aligned investment and next-gen technologies, Vietnam is shaping a capital landscape that prioritizes sustainable value creation.

The Vietnam Private Capital & Innovation Report 2025 does not downplay the challenges—such as regulatory friction, global macroeconomic volatility, and talent shortages—but underscores that Vietnam’s growth is based on strategic execution, not short-term momentum.

For more news and insights, visit AI News on our website.

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I’m Anosha Shariq, a tech-savvy content and news writer with a flair for breaking down complex AI topics into stories that inform and inspire. From writing in-depth features to creating buzz on social media, I help shape conversations around the ever-evolving world of artificial intelligence.

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