Though considered the market with the most growth potential in Southeast Asia, in the context of the general global difficulties, investment in Vietnam’s startup market may decline in the time to come, according to Ms. Le Han Tue Lam, General Manager of South Korean investment fund Nextrans.

Major deals of $5-10 million usually take six months to a year to complete, so if investors decided last year to pour capital into a startup it is only happening now, she explained.

In the first half of this year, capital inflows were largely similar to results in the same period of last year. But in the second half, the market will face more difficulties, Ms. Lam added. The world market has seen a significant correction, and, especially, the US technology stock market has declined, so other markets will face similar developments. Therefore, it is forecast that the next one or two years will see a certain decline in the market. In major markets, investment flows to startups were down substantially in the first half of 2022 compared to the first half of 2021.

However, for emerging markets like Vietnam, the delay may be longer. Given such developments, Ms. Lam said that actual investment inflows into the startup market this year may not be high.

Total investment in startups is indeed likely to decline compared to 2021, and may continue downwards in subsequent years. Therefore, “in 2022, just maintaining the level of investment in startups as in 2021 is already a success for Vietnam,” Ms. Lam believes.