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. In addition, the Fund also expands the investment target without limit to startups in areas with good growth potential.

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. He cited statistics from the market data platform Tracxn showing 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.

In addition to Artificial Intelligence; Semiconductors and Cloud Computing, VinVentures prioritizes unlimited expansion with startups in areas with good growth potential and high-tech products.

With VinVentures, what he expects is not only to “quench the thirst” for capital for startups but also to create a strong driving force by doing things methodically and quickly in the “Vingroup style”. He gave the example of technology projects in the Science and Technology Project Funding Program of 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 come into reality soon. “For startups, the most important thing is speed because opportunities come and go very quickly. That is also the reason why many startups will expect to be accompanied by VinVentures”, Mr. Ngo Duc Hai assessed.

From a broader perspective, Associate Professor Dr. Dinh Trong Thinh, an economist 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 basic areas 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. This means that 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.

Many experts believe that good technology projects can be applied to VinFast to create technological resonance for Vietnam.

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 can not only access 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.

With great significance, according to the expert, VinVentures' $150 million in assets may just be the starting point. "With national spirit and a strong mindset, I believe that 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.