Vietnam’s fintech sector experienced a sharp fall in funding in the first half of this year, to $6.2 million from $17.9 million in the same period of 2022, representing a decline of 62 per cent, according to Tracxn Technologies.

Based on Software as a service (Saas), Tracxn said in its recently-released “FinTech - Vietnam Half-Yearly Funding Report - H1 2023” report that the sector experienced a significant downturn in funding in 2023, largely because of the lingering effects of the “funding winter” and the global economic uncertainties.

Total funding into Vietnamese tech startups fell 82 per cent to $66 million in the first half from $372 million in the same period of 2022.

The absence of late-stage funding rounds also contributed to the decline, with Vietnam’s fintech space witnessing no late-stage funding in 2022 and 2023.

In funding rounds that did occur, early-stage investments constituted the majority, contributing $5.1 million to total funding in the first half of 2023, Tracxn reported.

However, this amount reflects a 97 per cent decline compared to the substantial $195 million raised during the first half of 2022.