Việt Nam’s start-up market enters restructuring phase

Việt Nam’s start-up market enters restructuring phase

In 2026, venture capital inflows into Việt Nam’s start-up ecosystem are expected to recover gradually, though in a more selective manner. VinVentures forecasts that capital will focus on start-ups that have survived the rigorous screening of 2024–2025, possess clear business models, strong commercialisation capacity, and the ability to generate real cash flows.

total venture capital investment in Việt Nam is estimated at about US$215 million in 2025. —VNA/VNS Photo

Venture capital investment in Việt Nam’s start-up ecosystem fell sharply in 2025, with funding increasingly concentrated on companies that had demonstrated their feasible business models, signalling a clear restructuring phase for the market.

According to the Việt Nam Tech & Venture Capital Outlook 2025: Reshaping Growth for a New Era, released by VinVentures, total venture capital investment in Việt Nam is estimated at about US$215 million in 2025 across 41 deals, down roughly 30 per cent year on year. The downturn extends a correction trend that began after the market peaked in 2021.

The report notes that this prolonged adjustment reflects not only tighter global capital flows but also a shift in investor mindset following a five-year observation cycle. As earlier investments have started to deliver results, investors have become more cautious toward unproven business models and early-stage ventures.

Beyond a decline in deal volume, capital allocation became more concentrated. Funding largely flowed into later-stage rounds with clearer market traction, typically in the range of $5-10 million. Notably, the top 10 deals accounted for as much as 72 per cent of total invested value, with most going to relatively resilient sectors such as EdTech, ClimateTech, and retail and e-commerce.

A similar pattern emerged in deal size distribution, with transactions worth between $1 and 5 million jumping from about 21 per cent in 2023 to roughly 41 per cent in 2025. Meanwhile, the small deals under $1 million kept dropping. This change points to a more cautious investment approach, with funds focusing on protecting capital and strengthening existing portfolios.

However, VinVentures stressed that the slowdown does not signal a full-scale withdrawal of capital, but rather a phase of “selective repositioning.” In a cautious environment, funds are tightening capital deployment, with about 60 per cent of resources allocated to follow-on and bridge rounds. These investments aim to extend financial runways and strengthen operational efficiency, rather than expand into new deals.

In 2026, venture capital inflows into Việt Nam’s start-up ecosystem are expected to recover gradually, though in a more selective manner. VinVentures forecasts that capital will focus on start-ups that have survived the rigorous screening of 2024–2025, possess clear business models, strong commercialisation capacity, and the ability to generate real cash flows. 

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