波士顿咨询公司（BCG）：越南：全球经济增长的一架引擎-越南投资格局分析

Copyright©2023byBostonConsultingGroup.Allrightsreserved.

Vietnam:

AGlobalEngineofGrowth

withcontributionfrom

1

ExecutiveSummary

‘Vietnam:AGlobalEngineofGrowth’reportprovidesacomprehensiveanalysisofVietnam'sinvestmentlandscape,aimingtoprovidevaluableinsightsfortheinternationalinvestmentcommunityonthegrowthjourneyandfutureprospectsofVietnam,oneofthemostfastestgrowingeconomiesinSoutheastAsia,aswellasitsrisksandchallenges.

Overthepastdecades,Vietnamhasemergedasanattractivehotspotwithsubstantialcapitalinflows,attributedtorobusteconomicgrowth,strategiclocation,andabundantmarketpotentials.Vietnamranks70thover190othercountriesin“EaseofDoingBusiness”researchbyWorldBankGroup2020,coupledwithongoinggovernment’seffortonpolicyreforms,whichpavesthewayforVietnam’spro-businessenvironmentgoingforward.

Thisreportpresentssomehighlightonmacroeconomicoverview,businessenvironmentsaswellasinvestmentopportunitiesintheVietnam:Tech-enabledsectors,modernB2Bservicesandgreen-focusedinitiativesareamongthemostpotentialverticalsforfuturegrowth.However,toensuresuccess,itisimperativetoconductacomprehensiveevaluationofthemarketentrystrategyandtheabilitytothrive,takingintoaccountthevariouseconomic,legal,operationalandenvironmentalchallengesthatmayarise.

Successfulforeigninvestorslargelypossess4keyfactors:

.Strategiclong-terminvestmentstrategyintogovernmentkeyareas,leveraginggovernmentincentivesscheme

.Stronglocalpartnershiptoleverageexpertiseandknowledgeoflocalbusinesses,savingtimeandcostnavigatinglocalnormsandbusinesspractices

.Investmentdiversificationacrossmultipleassetclasses/industriesinordertominimizerisksfrommonopolyindustriesandexternalshocksaswellastomaximizereturns.

.Strongriskmanagementandmitigationstrategyinplacetoproactivelymanagerisksassociatedwithemergingmarket

Methodology.ThisreportusesproprietarydatafromGoldenGateVenturesandpublicdatabases/reportstodrawmeaningfulanalysis.

2

Vietnam:AtaGlance

ECONOMICINDICATORS

SOCIALINDICATORS

GDPGrowthrate

8.02%(2022)

3.32%(2023Q1)

GDPperCapita

US$3607.23

(2022)

Population

Nearly100m

GlobalIndexofDigital

EntrepreneurshipSystems

Globalrank:63/113(2022)

FDIInflows

US$27.7b(2022)US$

BenchmarkInterestRate

5.5%(May2023)

Government

(Single-party)Communist

GlobalInnovationIndex

Globalrank:44/132(2021)

Inflationrate

3.15%(2022)

3.35%(2023Q1)

Easeofdoingbusiness

Globalrank:70/190(2020)

Literacy

96%(2019)

InternetUsage

74%ofpopulation(2021)

HaNoi

DaNang

HoChiMinhCity

spendingoneducationandhealthcarethanregionalpeers

Spendingas%ofhouseholdincomein2022

Macroeconomicoverview|VietnamhasbeenoneofthefastestgrowingeconomieswithinSoutheastAsia

VietnamhasbeenoutperformingitsregionalpeersintermsofGDPgrowthrateandisexpectedtokeepupwiththismomentumintheupcomingyears

In2022,Vietnamachievedeconomicstabilitydespiteglobalturmoilwithdecenteconomicgrowthandinflationbeingundercontrolcomparedtoregionalpeers

GDPGrowthrate(%annual)-2020-2024F

Vietnamesehouseholdsfocusonhumandevelopment,provenbythehighest%

GDPpercapita($US2015constant&CAGRfrom2017-2022)

Asamajoragendainthenationaldevelopmentfocus,urbanizationhaspickedup

speedtosupportVietnam’sambitiousgrowthtrajectory

Urbanizationrate(%oftotalpopulation),2022&Averageurbanpopulationannualgrowthrate(2018-2022)

Averagegrowth

(‘18-’22)

2.8%

1.6%

1.7%

2.1%

0.1%

2%

3

Source:VietnamGeneralStatisticsOffice,PhilippineStatisticsAuthority,SingaporeDepartmentofStatistics,VietnamMinistryofPlanningandInvestment,PassportEuromonitor,IMF,WorldBank.

2

Macroeconomicoverview|VietnamhasemergedasahotspotforFDIespeciallymanufacturing,withAPACcountriesasmajor

contributors

VietnamhasemergedtobeoneofthemostattractivedestinationsforFDIintheSEAregion

Setbyrapideconomicgrowthandindustrialization,Vietnam’sFDIdisbursementhasbeenacceleratingataCAGRof6.4%(2015-2022).TheVietnamesegovernmenthastakenproactivestepstofosterhealthyinvestmentclimateforFDImovementssuchasadministrativereform,legalandtaxincentives.

Vietnam,DisbursedFDI(2015-5M2023)and2023forecast,billionUSD

●TopsectorsforFDIdisbursement:

1

Manufacturing&

Processing

Realestateactivities

3

Production,

electricity,gas,

stream&air

conditioningsupply

●TopCountriesbyTotalregisteredcapital:

1Singapore2SouthKorea3Japan

Covid-19pandemic

4

(*)WeexpectVietnamwillmaintainthecurrentCAGRof6.4%inFDIDisbursementin2023amidglobaleconomicdownturns,amountingto$24BforFDIprojectsbyyear-end2023.Theshadedareaisactualfigurefor5M2023.Source:VietnamMinistryofPlanningandInvestment,GoldenGateVentures

Astheglobalsupplychainshift

continuestotakeplaceand

manufacturingbeingthekeydriver,

Vietnam'sexportisexpectedtoexceedmostothersintheregion

Vietnamisontracktosustainits

outperformerpositioninSEAifleveragingwellitsstronggrowth

momentum

IndonesiaMalaysiaPhilippinesSingaporeThailandVietnam

-

Macroeconomicoverview|Inthenearterm,Vietnamisexpectedtomaintainstrongmomentumandachievehighestgrowthforecast

ASEAN-6RealGDPgrowth(%),2020–2025F

Vietnamwastheonlyonetologreal

economicgrowthin2020,thankstoitsquick

successincurbingthepandemic,whilstother

economicrecoveryisfurtherdelayedby

recurringandprolongedCOVIDwaves

1

0

5

0

202

0

2022

E

2023

F

2024

F

2025

F

202

1

10

Source:OxfordEconomics,OECD;BCGResearch&Analysis5

-10

-23

6

UK

Canada

20

EU

338

-262

90

-38

55

Russia

China

>$1Tn

Increasein

tradefor

ASEAN

2031

83

70

72

39

32

Japan/

SouthKorea

US

-63

93

172

Mexico

21

35

42

137

59

73

136

Legend

74

Widthofarrowrepresentstradeflowsfor2031vs2021

totalchangein($billions)

Mercosur

<0%

0-2.3%

>2.3%

21

7

2

India

236

ASEAN

27

GCC

438

Africa

Changeintradeofgoods

80

Macroeconomicoverview|Significantchangeintradeexpectedinnext10yearswithASEANasthekeywinner

-26

47

17

(majorcorridors1,

2031Fvs.2021,$B)

Australia

Colorofarrowrepresents

CAGRfor2021-2031(%)

Sources:NaturalEarthCountryboundarieswithoutlargelakes

6

1.Corridorsinthemapaboverepresent~46%ofglobaltrade

Source:BCGTradeFinanceModel2022,UNComtrade,OECD,WEF,IHS,TradeAlert,BCGAnalysis

Mar’20

Feb’Mar’

Jun’19

Jun’20

Jun’21

Aug’21

Dec’21

Feb’22

Oct’22

Jun’22

Aug’22

Nov’22

Dec’Jan’

Jul-Sep’18

23

2323

22

wlstron

Planstoinvest

anadditional

US$45million

initssubsidiary

inVietnam

Investmore

thanUS$1

billionfactory

inVietnam

Expands

itsmnfg.megasiteinVietnam

Startits2ndplantinVietnam

6Apple

Moves

productionof

MacBooksfrom

Chinainto

Vietnam

intel

Considers

investmentin

Vietnamfor

chippackaging

assemblyplant

Partnerswith

DaiAnGroup

for$1Bpharma

manufacturing

plant

Plans

investmentfor

$300mil.

manu.plants

Invests$150

millionin

Vietnamfor

factory

building

Planstobuild

anautomobile

factoryin

Vietnam

Macroeconomicoverview|Globalmanufacturersareincreasingly

shiftingproductiontoVietnamandSEAduetoescalatinggeopoliticsbetweenChinaandtheWest

US& EUactions

China'sactions

Corporateactions

Selective

Newexport

controlsonAl&

semiconductor

technologies;Latvia&

EstoniaexitChina’s

“16+1”CEEcoop.

ChinaimploresUStodroptariffs

CHIPSact&

IRApolicypassedchallengedChina;

UShouseof

representatives

votestosetup

committeeto

counterChina;EUsuit

vs.ChinaatWTO

US-China

PhaseIdeal;

Penaltiesimposed

overChina's

forcedlabor

AUKUS

agreementtocounterChina

Chinaincreased

tariffsonUS

products

US-China

2-waytariff

escalation,US

exportcontrols

onHuawei

ChinaAddsUS

Defense

Companiesto

Unreliable

EntityList

US-China

postponetrade

dealreview;

Chinapushes

UStocancel

tariffs

Exportcontrols

expanded

further

China&Russia

sign“nolimits”

Partnership;

China-EU

summitends—

withoutresults

US-China

balloonincident;EUwarnsChina

onweapons

supplyingto

Russia

China

sanctions4

USgovt.

commission

members

Increasesparts

suppliesfrom

Chinato

Vietnam

ASML

Considers

buildingplants

inSEAinstead

ofChina

LGElectronics

Intendsto

invest$4Bina

manufacturing

base

CorporateactionsPoliticalactions

1.CAI:TheEU-ChinaCompressiveAgreementonInvestment;2.Corporateaction'sdateisthedateofnewsarticlestatingintention7

Source:Reuters,VnExpress,BCGGlobalAdvantageGeopolitics&TradeImpactAnalysis

14citieswith>200,000MACs

ĐiệnBiênVPĩhủnh

Yên

Hanoi&HaiPhong

Capital&largestseaportinVietnam

HoChiMinh

EconomiccenterofVietnam

Qui

Nhơn

TuyHòa

NhaTrang

PhanRang-ThápChàm

MỹTho

25citieswith

>200,000

MACs

Hanoi,BacNinh,Hai

Phong&RedRiver

Delta

Benefitfrommore

industrialareasandFDI

companiessettingup

plants

DaNang

FocusonICT,tourism,

logisticsectors,and

attractmoreFDI->

majorshareofMACin

CentralVietnam

Qui

Nhơn

TuyHòa

Nha

Trang

.

ThủDầuMột

ĐàLạt

.PhanRang-ThápChàm

CanTho

CenterofMekong

Deltaregionfor

economicactivities

andMACpopulation

HoChiMinh&Southeastregion

HousemoreMACs-

moreindustrialparks

andlogisticinBaRia–

VungTau

.PhanThiết

Cao

Bằng

●BắcKạn

Thái

Tuyên

Bắc

Giang

Hạ

Long

Thanhýoá-

Định

Ninh

Bình

Vin

h

Hà

Tĩnh

Đồng

Hới

ĐôngHà

Huế

Đà

Nẵng

TamKỳ

QuảngNgãi

KonTum

Pleiku

BuônMaThuộtGia.Nghĩa

Đồng.ĐàLạt

TâyNinh厂ThủDầuMột

PhanThiết

TràVinh

SócTrăng

Bạc

Liêu

Hà

Giang

Lai

Châu

LàoCai

Nguyên

LạngSơn

Bắc

Ninh

Quang

ViệtTrì

SơnLa

NewHanoi

Hoà Bình

HưngYên

Hải

Dương

Phủ

Hải

Phòng

Nam

TháiBình

.

Xoài

Biên

TP.HồChíMinh

Hòa

CaoLãnh

LongI

XuyêầnBếnTre

TânAn

VũngTàu

RạchơGiá

Vị

Thanh

VĩnhLong

Cà

Mau

Hà

Giang

Châu

ĐiệnBiên

Yên

Hạ

Long

Hải

Dương

Nam

Định

Ninh

Bình

Vin

h

Hà

Tĩnh

Đồng

Hới

ĐôngHà

.

Huế

Đà

Nẵng

.TamKỳ

.Quảng

Kon.Tum

Pleiku

BuônMaThuộtGia.Nghĩa

Đồng

TâyNinhXoài

TP.HồChíMinh..Hòa

hThơTràVinhBếnTre

VĩnhBạc

LongLiêu

Cà

Mau

Cao

Bằng

Lai

LàoCai

BắcKạn

Thái

Nguyên

TuyênQuang

.LạngSơn

Yên

Bái

BắcNinh

Phủ●Vĩnh

Bắc

Giang

ViệtTrì

SơnLa

NewHanoi

HoàBình

Hưng

Phủ

Hải

Phòng

Lý

ThanhHoá

TháiBình

Ngãi

Biên

Cao1

LãnhLongVũng

nXuyênCầnTàuMỹTho

VịThanhSócTrăng

Macroeconomicoverview|Vietnamwillseeasignificantgrowthinitsmiddleclassandaffluentpopulationinthenext10years,

especiallyinemergingcities

2021

.Morethan1,000,000MACs.

Notes:MACs–Middleandaffluentclasses

Source:BCGVietnamwealthandpopulationmodel,BCGgeoanalytics

2030

.200,000–500,000MACs

500,000–1,000,000MACs

.Lessthan200,000MACs

8

9

Protectingminorityinvestors

97

Dealingwithconstruction

permits

25

Tradingacrossborders

104

Gettingcredit

25

Payingtaxes

109

Gettingelectricity

27

Registeringproperty

64

Startingabusiness

115

Resolvinginsolvency

122

Enforcingcontracts

68

Businessenvironment|Recentregulatoryreformshavecreatedamoreconducive

environmentforbusinessesinVietnam

70th

Globalrank

RankingsofVietnaminEaseofDoingBusiness(2020)releasedbyWorldBankGroup,measuringregulatoryperformancerelativetoothercountries

Vietnam,Rankingsonindividualtopics

Vietnamhasbeenworkingonregulatoryreformsandtechnologyinfrastructuretoeasetheprocessofgettingconstructionpermits,credit,andelectricityforentrepreneurs.However,improvementsarestillinneedincross-bordertrading,taxpaymentprocess,andinsolvencytreatment,posingforeseeablechallengesforprospectiveinvestorsandfounders.

**Economiesarerankedontheireaseofdoingbusiness,from1-190.Ahigheaseofdoingbusinessrankingmeanstheregulatoryenvironmentismoreconducivetothestartingandoperationofalocalfirm.

Source:WorldBank:EaseofDoingbusiness2020

VIETNAM

MainlandChina

Thailand

Philippines

Malaysia

Singapore

Indonesia

Russia

ASEAN4

Kyrgyzstan

Kazakhstan

Armenia

Belarus

Philippines

Indonesia

Thailand

JapanNewZealand

Australia

EU

EVFTA

VCFTA

Mexico

PeruCanada

CPTPP

VIETNAM

SingaporeBruneiMalaysiaChile

Innegotiation

Businessenvironment|Thestrategiclocationandopennesstotheglobal

economythroughvarioustradeagreementsprovidegeopoliticaladvantages

Vietnamactsasanindispensablelinkintotheglobalsupplychainwithlongcoastlineof3,260kmstretchesacrossthecountry

Top50

3seaportsofVietnamnamed

intheWorld’slargestcargo

throughput(2020)(1)

14th

Vietnam’srankonLiner

ShippingConnectivityIndex

(2022Q4)(2)

Vietnam’sseaarealocatesintheimportantmaritimeroutesandtheairlinesbetweentheIndianOceanandthePacificOcean,betweenEurope,theMiddleEastand

MainlandChina,Japanandotherregionalcountries.

33airports

(11internationalairports)

320seaports&riverports(163internationalports)

Beinganexport-driveneconomy,Vietnamhasalsoestablisheddiplomaticconnectionswithnumerousmarketsandglobalpowers

SouthKorea

Laos

RCEP

Cambodia

VKFTA

Myanmar

Myanmar

MainlandChina

HongKong

UAE

Canada

Israel

Currently,Vietnamhascreateddiplomacywith178nationsandhasdevelopedeconomic,trade,andinvestmentrelationshipswith224countriesandterritories.

●Vietnamholdsmembershipsinvariousinternationalorganizations

*Non-exhaustive

●Vietnamhas15active(signed)FreeTradeAgreements(FTAs)andother4

undernegotiation.

Notes:TheRHSdiagramisforvisualizationpurposesonly,thisisnon-exhaustivelistofVietnam’sFTAs.FulllistofVietnam’sFTAsisinAppendix-VietnamFTAs.

(1)AccordingtoLloyd’slistof100Ports2020atLloyd'sList,thelatestupdatebyLloydMaritimeCompany(UK)):SaiGonport(ranking22nd),HaiPhongport(ranking28th)CaiMepport(ranking32nd).

(2)Vietnamhadanindexof76.37in2022Q4byUNCTAD.Theindexcanbeconsideredaproxyforaccessibilitytoglobaltradethroughtheshippingnetwork.Thehighertheindex,theeasieritistoaccessahighcapacityandfrequencyglobalmaritimefreighttransportsystemandeffectivelyparticipateininternationaltrade.

10

(3)EFTAincludingNorway,Switzerland,Iceland,Liechtenstein)

(4)ASEANhasmultilateraltradeagreementswithIndia,MainlandChina,NewZealand,Australia,Japan,SouthKorea,HongKong.

Source:EY,SEAmapattributedtoVectorF,Lloyd’sListIntelligence,OpenDevelopmentVietnam,WebsiteofWTOCenterunderVietnamChamberofCommerceandIndustryat

https://www.trungtamwto.vn/

,VietnamGeneralConsulateHouston,visualizationadaptedfromAsiaBriefing.

CorporateincometaxacrossmajorAPACcountries,2022

30%

k

Philippines

China

Vietnam

Indonesia

Malaysia

25%

10%

25%

24%

20%

Businessenvironment|Vietnamalsoofferspowerfulcompetitive

advantagesinworkforce,livingenvironmentandcorporatetaxtreatments

Competitivelabourcost

MinimummonthlywagesofVietnamvsCountries,2022,$

473

380

310

231

Philippines

200

Malaysia

Indonesia

Vietnam

China

Formidableindustryworkforcesize

Hospitablelivingenvironmentforexpatriates

ExpatCityranking,2021

6th

Kuala

Lumpur

13th

Shanghai

11th

Bangkok

Singapore

5th

1st

HCMC

Favourabletaxrate

Workforceinmanufacturingsector,2022,millionpeopleand

percentageoftotalpopulation

14%

1

43

VietnamChinaIndonesiaPhilippinesMalaysia

13

6

4%

8%

9%

4

2

1

11

Note:ExpatCityrankingisannualreportfromInterNationwhereexpatsareaskedtosharepersonalexperiencesfromthequalityoflifetoworkingabroad

Source:OxfordEconomics,InterNation,BCGanalysis

Businessenvironment|InvestmentincentivesarealsoprovidedtosupporteconomicbreakthroughsinmanykeyindustriesinVietnam

Industry-basedtaxincentivesinVietnam

SummaryofPrioritizedBusinessLinesandProjectsEligibleforInvestmentIncentivesInVietnam

Class

Hightech

Largescale

Socialimportance

Description:

Investmentprojectsinthefollowingsectorcategories:

➢Informationtechnology

➢Biotechnology

➢NewMaterialtechnology

➢Automationtechnology

➢Supportingproductsforhigh

technology

➢Scientificresearchanddevelopment➢Softwareproduction

Manufacturingprojectswitha

minimuminvestedcapitalofVND

6,000billion,andwhichmeetoneofthefollowing

➢AnnualrevenuesofVND10,000billionbythefourthyearof

operations

➢Employmentofatleast3,000workers

Manufacturingprojects**witha

minimuminvestmentcapitalofVND12,000billionandwhichutilizecertaintechnologies.

Investmentprojectsinthe

followingsectorcategories:

➢Education

➢Vocationaltraining

➢Healthcare

➢Culture

➢Sports

➢Environmental

Incentives:

10percentCITfor15years*

CITexemptionfor4years**

50percentreductiononpayableCITfor9years

10percentCITfor15years*

CITexemptionfor4years**

50percentreductiononpayableCITfor9years

10percentforentirelifeofproject4yearsofCITexemption**

5yearsof50percentreductiononpayableCIT

12

*Fromthefirstyearofoperatingincomegeneration

**fromthefirstyearofprofit

Note:Projectsinvestedintowithineconomiczonesmaybeliabletodifferenttreatment.

Source:VietnamBriefing

From“Highspeed”...To“Highquality”...Byrestructuringtheengineofeconomicgrowth…

Laborintensive

Talentfocus

Dynamicforces(e.g.innovation)

Hi-techeconomy

DigitalEconomy

Green

Economy

Regionaltop-tiereconomy

Moderntechnical&socialinfrastructure

Highproductivity,advancesinscience,technology&innovation

Developingpeople'smaterial,cultural&spiritualvalue

Greenambition

Forminganddevelopingeconomiccorridors

Investmentopportunities|Governmentdirectiontodoubledownon3keygrowthpillarstorestructuretheengineofeconomicgrowth…

NationalMasterplanfor

2021-2030withvisionto2050

Staticforces(e.g.low-costlabor,naturalresources)

Emergingeconomy

Andmovingtomoresustainabledevelopmentmodel

Depleting/Polluting

Source:ResolutionNo.81/2023/QH15,DecisionNo.569/QD-TTg,BCGanalysis13

Investmentopportunities|…andshiftfocusto“higherquality”FDI

Vietnam’sshiftingofFDIstrategyfrom

“attractingatallcosts”to“selectivelyattracting”

Highquality

Focusonprojectthatblendedintothe

developmentplanofthecountry

Technologyefficiency

Moretechnology,innovation,lesslabourintensiveinvestment

Sustainability

Moresustainableand

eco-friendlyinvestments

KeyselectingfactorsforFDI

Highquality

.PrioritizingvalueaddedinvestmenttothepeoplesuchasEducation,R&D,Supplychainlinkages,etc.

.Prioritizingbusinessesthatoperateeffectively(highsafetystandard,fullyintegrated)&fulfilltheir

commitments(e.g.providingjobs,payingtax,etc.)

Technologyefficiency

.Encouragingadvanced/new/high/clean

technologyandmodernmanagementprojects

.EncouragingtechnologytransferandgovernanceforVietnamesecompanies

Environmentalimpact

.Improvingstandardsandtechnicalregulationsonproducts,environmentalprotection,resourcesandenergysavinginlinewithregionalandworld

standards

.E.g.Newprojectsmanufacturingreproductionenergy,cleanenergy,energyfromwaste

Source:ResolutionNo.50/2019/NQ/TWon“PerfectingthepoliciesofFDIcooperationby2030”;BCGanalysis14

15

2

3

IT&DIgitalservices

FinTech

EdTech

Investmentopportunities|Futurepotentialgrowthsectorsworth

Non-exhaustive

investigatingforforeigninvestors

1

MODERNB2B

SERVICES

GREENECONOMY

TECH-ENABLED

SECTORS

HealthTech

Renewables

Asset-lightLogistics

De-carbonisationservices

Recycling&circulareconomy

Deep-divesinnextpages

NOTABLESTARTUPS

Tech-enabledsector:HEALTHTECH

6%

Healthcare

spendingas%

Vietnamper

capitaincome

(2022)

x3

$161

Healthcarespending

percapitain

Vietnam(2018)

percapitainVietnam(2028)

$408Healthcarespending

Telemedicine/O2O

Booking/DigitalPharmacies

Marketplace

medici

Biotechnology

*Thelistisnon-exhaustiveandnotordinal.

Source:InsigniaVenturesPartners,InnolabAsia,TracxnTechnologies

Anuntappedsectorwithnumerousunresolvedpainpoints,HealthTechisemergingtobebeyondpromising

Attributedtothefollowingdrivers:

●Growingtech-savvypopulationwithhighpropensitytospendonhealthcaredrivenbyexpandingconsumingclassandrisinghealthawareness.

●Overloadedpublichospitals,lackofpublicinfrastructureinvestmentandundersuppliedhealthcareprofessionalshavecreatedasolidgroundforinnovativeformsofhealthcaresuchasremotemonitoringsolutions,telemedicine,AI-diagnosisandempoweredtheprivatehealthcaresectortogrow.

●Unpleasantexperience,longwait,outdatedinfrastructureremainpatients’painpointsduringofflinehealthcheck-upatpublichospital,givingariseforprivatesectorandpatient-focusstartupsolutions.

●Governmentsupportandpreferentialtaxtreatmenttoencouragethedevelopmentofhealthcaresectorandmakeroomforinnovation.

16

Tech-enabledsector:FINTECH

Vietnam,Totalfundingvalue&Countoffintechdeals,2016-9M2022(inmillionUSD)

Dealscount(*)22572514133027

Vietnam,Transactionvalueofthefintechsector,2017-2027F,bysegment(inbillionUSD)

FintechismakingaboominVietnam,thesectorhasreceivedsubstantialfundingwhilepresentinghugeroomforgrowth

Attributedtothefollowingdrivers:

●Young,tech-savvypopulationofnearly100millionpeoplewithincreasingdigitaladoptionandsmartphoneownership.

●Asignificantproportionoftheunbankedpopulationremainsuntapped;MSMEs(representing70%ofVietnam’sGDP)arestrugglingwithfinancing.

●Risingmiddle-classandbuoyanteconomicactivitiesfurtherfortifydemandforfast,cost-effectiveandinnovativefinancialservicesdigitalization.

●Favourablegovernmentpoliciesandinitiativestopromotedigitalpayments,financialinclusionandinnovation.

NOTABLESTARTUPS

Payment

Consumerfinance

=undiin

easygp

Data

Intelligence

tustingsocia

Blockchain

(*)GoldenGateVenturespreliminarycount,non-exhaustive.Fintechsectorincludesbutisnotlimitedtocorepaymentservices,technologicalapplicationsintofinancialservicesandbanking.

*Thelistisnon-exhaustiveandnotordinal.

Source:WorldBank,Statista,DoVentures;TracxnTechnologies

17

Tech-enabledsector:EDTECH

Vietnam,Totalfundingvalue&CountofEdtechdeals,

2013-2021(inmillionUSD)

Dealscount(*)---3+5+3+3+2+6+11+

NOTABLESTARTUPS

EdTechisgainingattentionfrompurpose-driveninvestors

Attributedtothefollowingdrivers:

●Largeandgrowingyoungpopulationwithastrongdemandinhigh-qualityeducationandprofessionaldevelopmentwithhighlevelofdigitaladoptionintolearning,teachingandeducationalexperiences.

●Higherspendingpropensityoneducationduetodeep-rootedbeliefintheimportanceofhavingeducationaladvantages,coupledwithrisingdisposableincomeandbuoyanteconomicgrowth.

●COVID-19hassetanewlearningandteachingnormalsthatcanbefacilitatedthroughonlineplatforms.

●Supportinggovernmentinitiativestopromotethedevelopmentofeducationandedtechindustry.

DigitaltransformationofeducationinVietnamisstillinitsearlystages.In2019,Vietnamwasamongthetop10fastest-growingonlineeducationmarketsworldwide,withanannualgrowthrateof44.3%.Currently,thereareover200EdTechfirmsinVietnam,serving2millio