Vietnam Venture Summit started from June 10th in Hanoi with the participation and speeches of Government leaders and senior representatives of top venture capital fund. leading startups in Vietnam and the region. In the event, Director of FPT Ventures/CEO of VIISA VIISA, Mr. Tran Huu Duc; CEO of Sendo, Mr. Tran Hai Linh joined and gave a speech in a panel discussion on entrepreneurship and the digital economy.
Vietnam Venture Summit is organized by the Ministry of Planning and Investment in coordination with the Ministry of Science and Technology and Golden Gate Ventures. The event is held in 2 days: June 10th 2019 in Hanoi & June 12h 2019 in Ho Chi Minh City, with the aim of connecting with domestic and international VC interested in a start-up environment in Vietnam.
The conference attracts 100 domestic and foreign investment funds, including many big funds in the world such as FPT Ventures, Softbank Vision Fund, CyberAgent Ventures, Mekong Capital, 500 Startups Vietnam, DT&I, IDG Ventures Vietnam, VinaCapital Ventures… and representatives of international corporations such as Google, Visa, BCG Digital Ventures, One Championship, Lotte, etc
Vietnam’s entrepreneurial ecosystem in recent years has grown impressively in both quantity and quality. This was also confirmed by Deputy Prime Minister Vu Duc Dam and Minister of Science and Technology Chu Ngoc Anh as well as minister of Planning and Investment Mr. Nguyen Chi Dung in the morning session on June 10th.
Panel discussion “The participation of Vietnamese economic corporate in startup ecosystem” took place in the afternoon of the same day with the participation of Mr. Tran Huu Duc-Director of FPT Ventures & CEO of VIISA, Mr. Kyle F.Kellhofer- Senior country manager in Vietnam, IFC; Mr. Hanno Stegmann- Director of BCG Digital Ventures; Mr. Pham Thanh Hung – Vice President of CEN Group; The coordinator is Mr. Vu Duy Thuc – founder of Kambria. During the panel discussion, speakers discussed the role and value of corporations that bring to startups.
Currently, Vietnam’s startup ecosystem is growing with more than 40 venture capital funds, doubling compared to 2015. Many big domestic corporations have joined venture capital investments such as FPT, Viettel, Vingroup, CMC, CenGroup… Along with that, there are more than 40 incubation and accelerating facilities (such as VIISA, VSV…) to support startups, as well as 60 common co-working spaces across the country.
Mr. Tran Huu Duc stated that the start-up environment in Vietnam is making significant progress with the abundant supply of software development talents, with quality comparable to some developed countries (e.g: Korea) but with extremely competitive in terms of expenses. Besides, the openness and support of the government also contribute greatly to the development of a startup innovation ecosystem, which is also a platform for the development of entrepreneurship ecosystems.
Regarding the value of investment funds, Mr. Duc emphasized on the added values that FPT Ventures brings through synergy. FPT Ventures is established based on the synergy of the values of FPT and the external startup ecosystem. FPT.AI platform with the contribution of many resources from FPT as well as leading researchers, support startups to access this platform, decrease the go-to-market time. For example, the application of AI (using Text to Speech technology) in the call center, or security field has brought many positive outcomes.
In response to the investment trend, Mr. Duc shared that he is interested in a breakthrough solution in areas such as fintech, medtech, edutech, traveltech.
In Tech Trend: Digital Economy in Vietnam, distinguished speakers were: Mr. Tran Hai Linh – CEO of Sendo: Ms. Lai Viet Anh – Deputy Director of E-Commerce and Digital Economy Agency, Ministry of Industry and Trade; Mr. Thong Do- founder of Palexy, Mr. Nguyen Lan Trung Anh – CEO of Phoenix Holdings. The talk session was coordinated by Mr. Phan Minh Tam – President & Founder 24h.
With a growth rate of 33% in the past two years, Vietnam is ranked as one of the fastest growing e-commerce markets in the region, attracting many investors. US consulting firm Frost & Sullivan predicts that the e-commerce market in Vietnam will reach the US $ 3.7 billion by 2030.
Vietnam currently has about 35.4 million e-commerce users, this number is estimated to increase by 6.6 million by 2021. In the past 5 years, the market has witnessed a continuous increase in transaction rates. Online Shopping. From 2014 to 2020, Vietnam e-commerce market value is calculated in billion USD.
According to Mr. Tran Hai Linh, there were e-commerce waves taking place in India in 2013, then 2016 in Indonesia. E-commerce investment is a game that requires huge financial resources, with a large budget for marketing activities to change consumer behavior. E-commerce sites compete for burns at such a great amount with an aim to rise to the number one position in the industry and gain market dominance (e.g Amazon in the United States, Alibaba in China, Rakuten in Japan). With such a wave of investment, it is not only beneficial for the e-commerce industry but also facilitates other supporting industries such as electronic payment, logistics.
Mr. Linh has an optimistic view of logistics services in Vietnam. In the last seven years, investment in e-commerce logistics has developed significantly in both quantity and quality. Many companies in the region and all over the world have entered the Vietnam market (with an investment estimated of about 100 million USD). Now Sendo has many partners in technology and services, doing complex tasks in the product supply chain.
In 2018, Sendo.vn received a capital of USD 51 million from SBI Holdings Japan and other investors to improve products and services.
Another highlight from Vietnam Venture Summit in Hanoi is the commitment of domestic and foreign investors to spend the US $425 million, equivalent to about VND 10,000 billion to invest in startups in Vietnam within the next 3 years.