Startups in Vietnam have access to all the conditions required to hatch multi-million dollar tech firms.

Having attracted a rising large amount of foreign investment from global players, Vietnam and its startup scene deserves far more attention from investors than it gets.

You could maybe even argue that Vietnam’s startup ecosystem is Southeast Asia’s very best in terms of opportunities and lack of entry barriers.

The Best Frontier Market for Startups?

Vietnam has long been home to manufacturing plants from the world’s top innovators. Those include LG Electronics, Panasonic, and Toshiba. Since the US-China trade war began, Vietnam also transformed into Southeast Asia’s production hub for Korean electronics giant Samsung.

Yet Vietnam’s local startup scene only recently started luring investment from across Asia and beyond.

Following integration into the ASEAN Economic Community, along with an increased presence of global tech companies, seemingly more investors than ever want to put money into startups in Vietnam.

Back in 2016, Goldman Sachs and Standard Chartered Bank teamed up to raise US$28 million for Vietnamese e-payment operator Momo. Their successful investment quickly helped bring over two million extra customers along with incredible transaction growth exceeding 30%.

Meanwhile, California-based venture capitalist 500 Startups also announced the creation of a US$10 million fund focused on startups in Vietnam.

Large investors like these are betting on another goldmine in Vietnam. They’ll probably strike gold too considering most of the country’s startups are focused on the e-commerce sector.

Vietnam’s e-commerce sector is absolutely booming. Despite getting no federal support at all, it grew by an astounding 35% last year to reach US$4 billion in value.