Vietnam sees a 35% decline in venture capital and private equity investments, totaling $2.3 billion in 2024, according to a report.

The landscape of venture capital (VC) and private equity (PE) investment in Vietnam witnessed a significant downturn in 2024, with overall investments falling by 35% year-on-year to $2.3 billion. This drop reflects a global trend where investors are adopting a more cautious approach, influenced by tightening financial conditions and intensified scrutiny over company valuations. According to the latest report from the Ministry of Science and Technology, this shift in investor sentiment has reshaped the funding landscape for Vietnamese startups.

In 2024, Vietnamese startups secured $398 million in venture funding through 118 deals, marking a decline from the $529 million raised over 122 deals in 2023. The 2025 Vietnam Innovation & Private Capital Report highlights this notable dip, signaling potential challenges ahead for emerging companies seeking investment in the coming years.

Interestingly, the data reveals notable disparities across various sectors. Business automation emerged as a standout category, with investment soaring by 562% to $84 million, showing that investors are actively seeking opportunities within the realm of efficiency-driven technologies. In contrast, the agriculture sector also experienced a remarkable growth spurt, with VC funding surging 857%, indicating a renewed interest in Vietnam’s agricultural innovations.

The financial services sector, however, faced a stark decline, with funding decreasing by 61%. This contrasts sharply with the robust growth seen in other sectors like artificial intelligence (AI), where VC investments skyrocketed eightfold to $80 million. This trend underscores a palpable shift towards data-driven and productivity-boosting technologies, hinting at an evolving investor interest displaying a preference for tech-driven solutions.

Beyond venture capital, private equity activities also experienced a slowdown. In 2024, PE investment fell to $1.86 billion across 23 deals, down from $2.99 billion in 2023 over 25 transactions. Despite this downturn, the financial services sector remained the largest beneficiary of PE funding, attracting $852 million even amid a 51.6% decline from previous years. Conversely, the consumer goods sector demonstrated resilience, with investments surging from a mere $20 million in 2023 to $252 million, marking it as the fastest-growing segment for PE.

Healthcare investments also rose consistently, increasing to $539 million from $438 million, reflecting a steadfast interest in this critical sector. The overall trend indicates a strategic pivot among investors towards more disciplined capital allocations in response to heightened global uncertainties.

Currently, Vietnam is home to over 4,000 startups, including a burgeoning ecosystem that features two unicorns and many near-unicorn enterprises. This vibrant startup culture positions Vietnam as an attractive destination for tech investment in Southeast Asia, promising opportunities for both local and international investors to tap into the country’s potential amid a shifting global investment landscape.