Venture capital, private equity investments in Vietnam drop 35% to $2.3 bln in 2024: report

Total venture capital (VC) and private equity (PE) investment in Vietnam fell 35% year-on-year to $2.3 billion in 2024, as investors turned more cautious amid tighter global financial conditions and heightened scrutiny of valuations, according to a newly-released report by the Ministry of Science and Technology.

Vietnamese startups raised $398 million in venture funding across 118 deals in 2024, down from $529 million over 122 deals in 2023, says the 2025 Vietnam Innovation & Private Capital Report.

Business automation led by deal value, with investment surging 562% to $84 million. Agriculture ranked second, recording an 857% jump in VC funding, while financial services saw a sharp 61% decline.

Investment in artificial intelligence stood out, with VC funding into AI startups rising eightfold to $80 million last year, underscoring growing investor interest in data-driven and productivity-enhancing technologies.

Private equity activity also slowed. PE investment fell to $1.86 billion across 23 deals, compared with $2.99 billion over 25 deals a year earlier.

Financial services remained the largest PE destination, attracting $852 million despite a 51.6% year-on-year decline. Consumer goods emerged as the fastest-growing segment, with investment jumping to $252 million from just $20 million in 2023, while healthcare continued to draw steady interest, rising to $539 million from $438 million.

The report said the pullback reflects a shift toward capital discipline, stronger fundamentals and sectors seen as more resilient in a prolonged period of global uncertainty.

Currently, Vietnam is home to over 4,000 startups, including two unicorns and dozens of near-unicorn enterprises, making the country an attractive hub for tech investment in Southeast Asia.