Despite the emergence of innovative tech startups in Vietnam over the last several years, the country still needs to position itself as a hotspot for new businesses. According to Statista Research, the nation’s ecosystem ranked fifth in 2023 among the other Association of Southeast Asian Nations (ASEAN) members and 58th globally.  

Total funding dropped 52.7% to USD 46.5 million in the first half (H1) of 2024, according to market intelligence platform Tracxn. Early-stage investments decreased by 41% to USD 41.3 million, and there were no funds for late-stage startups. Furthermore, the mergers and acquisitions (M&A) landscape experienced a contraction, and no new unicorns (companies with billion-dollar valuations) were minted in H1.

Will Vietnam be the next big startup hub in Southeast Asia in 2025?

Nevertheless, all hope was not lost as some companies in sectors like logistics established themselves. We look at Vietnam’s top 5 tech startups, some of whom received significant investment capital, showed strategic growth, and had many investors, such as Monk’s Hill Ventures, Northstar Ventures, and Ansible Ventures.

Five thriving tech startups in Vietnam

Vietnam’s startup ecosystem faces challenges like a lack of robust policy and regulatory structures, inadequate push for innovation, and a limited local talent pool. Moreover, there is an unconducive business environment and a cap on investments from a venture capital (VC) fund. TNGlobal also highlights cybersecurity threats and infrastructure gaps, such as slow internet speeds.

Despite the obstacles and limitations, the following startups are doing well:

Kamereo 

The eCommerce platform Kamereo provides a business-to-business (B2B) food supply and delivery service. It has more than 2,000 quality products and distributes fresh vegetables and fruits. It recently raised USD 7.8 million in a Series B funding round from individual investors, Sumitomo Corporation, Mitsubishi UFJ Capital, Inspire Co, SMBC Venture Capital, and Reazon Holdings.

Kamereo plans to use the funding to improve its products and services and innovate new product features. The company is also enhancing its logistics operations, having a system for refrigerated transportation of produce, building a network of inventory storage warehouses, and enhancing its sales and delivery services.

Coolmate

Apparel brand Coolmate is a direct-to-consumer men’s clothing store selling essentials like T-shirts, underwear, pants, and more. The platform has an in-house design team and targets young men looking for affordable, quality, branded clothes over cheap, no-name products from other countries. 

Coolmate recently raised USD 6 million from Vertex Ventures Southeast Asia and India and hopes to become a unicorn by 2030. The company will use this funding for international expansion in the US and Southeast Asia, launching the women’s activewear line and building customer loyalty and trust to drive repeat business.

Techcoop

Agritech company Techcoop seeks to optimise the agriculture production supply chain through technology to ensure all stakeholders benefit from the products and services. Lenders provide funding, while agri-input suppliers sell seeds, fertilisers, farm tools, and more to the farmers, agribusinesses, and farmer-owned cooperatives.

Techcoop recently raised USD 70 million in Series A funding from venture capital firms TNB Aura and Ascend Vietnam Ventures (AVV). The company will use the money to develop its technology and expand to other areas.

PangoCDP

The digital platform PangoCDP has a data-driven approach that helps brands interact with their clients better and enhance their experiences. Users get to build a Master Channel where marketers can launch personalised promotional campaigns, leading to increased revenues.

Furthermore, the company continues to research and innovate novel and specialised marketing technology solutions that businesses can use to acquire new buyers, talk to them, and perform transactions.

PangoCDP raised USD 1.5 million in a Seed funding round from investors Kairous Capital and CyberAgent Capital. The company will use this injection of money to scale its team, accelerate its product development, and expand its market.

Kyna

Edtech platform Kyna English gives the younger generation access to high-quality language training using technology to overcome the boundaries of traditional education. It is available in five countries, has taught three million classes, and has 85,000+ students and 4000+ teachers. 

In August, the parent company, Dream Viet Education JSC, sought to raise USD 10 million to expand its services. DealStreetAsia accessed regulatory filings showing the company was able to raise some initial funds in November.

Outlook for Vietnam’s tech startup ecosystem

The focus of Vietnam’s top 5 tech startups above revolves around supply chain and technological concerns. The country’s logistics sector is vulnerable to disruptions caused by natural disasters, geopolitical tensions, and economic downturns. Some quick fixes would be diversifying suppliers, looking for local raw materials and manufacturers, and working with experts like DHL Express Vietnam, who have an established network and experience.

Secondly, tech startups in Vietnam will benefit from investing in sustainability. Powering technological tools will be cheaper with clean energy, and it is possible to lower costs further by using electric vehicles for transportation.

Finally, stakeholders can positively impact their respective sectors by collaborating with the government to shape funding and talent recruitment policies and establish a healthier regulatory climate.