According to Mr. Pham Hong Quat, Director of the Department of Market Development and Science and Technology Enterprises, in the first nine months of the year, Vietnamese startups made 38 deals with a total value of 372 million USD, an impressive number compared to Southeast Asian countries, where many companies recorded negative or zero growth. However, total investment capital is expected to fall short of the previous high in 2024, and there is a risk that this will be the third consecutive year of decline in startup capital.

Investment funds are currently very cautious in selecting startups. Representatives from funds, such as ITI Fund, Do Ventures and VIISA said that the rate of businesses receiving investment can only reach 0.5 - 1% of the hundreds of candidates they contact each year.

To attract investment, startups need to have a sustainable business model, product-market fit, and the ability to increase profits, along with fundamentals, such as technology and a quality founding team. In particular, venture capitalists have become less adventurous in their investment decisions.

In addition, startups in Vietnam are also looking forward to a more flexible legal framework so they can quickly test and adjust their business models. Although Vietnam has mentioned the regulatory sandbox mechanism for five years, it was not until November 2024 that this mechanism was officially implemented in Ho Chi Minh City, allowing testing of drones and autonomous vehicles. The sandbox mechanism not only creates conditions for businesses to operate in a safe environment but also helps to limit negative impacts, create space for innovation and product development, and promote progress in the technology industry.