Hanoi (VNA) – Venture capital investment in Vietnam’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 Vietnam Tech & Venture Capital Outlook 2025: Reshaping Growth for a New Era, released by VinVentures, total venture capital investment in Vietnam is estimated at about 215 million USD in 2025 across 41 deals, down roughly 30% 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 USD. Notably, the top 10 deals accounted for as much as 72% 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 USD jumping from about 21% in 2023 to roughly 41% in 2025. Meanwhile, the small deals under 1 million USD 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% 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 Vietnam’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./.
