Vietnam’s Startup Funding Drops by 73% in 2024

Vietnam’s startup ecosystem has faced a steep contraction in equity funding during 2024, with total investments plunging by a staggering 73% compared to the previous year. By December 2024, startups and companies in Vietnam had raised a modest $140 million across 43 funding rounds, a sharp decline from the $529 million secured through 112 rounds in 2023.

This dramatic downturn underscores a significant shift in the investment landscape. Analysts attribute the decline to several factors, including tightening global financial conditions, heightened investor caution in emerging markets, and reduced high-value funding rounds compared to the previous year.

The funding trend has been steadily declining since 2021, with $634 million raised in 2022 and $529 million in 2023. This year’s dramatic downturn marks a new low, highlighting a stark shift in the investment landscape for Vietnam’s startups.

Despite these setbacks, industry insiders remain optimistic about Vietnam’s long-term potential. “The funding landscape may be facing a slowdown, but Vietnam’s innovation and talent pool remain robust,” said a local venture capitalist. “This period might encourage startups to prioritize building sustainable, scalable business models over-reliance on external capital.”

As the year concludes with sharply reduced funding figures, the focus shifts to whether this downturn signals a temporary dip or a broader trend affecting startup ecosystems across the region.