Delegates pose for a group photo at the inaugural event of the Vietnam Private Capital Agency in HCM City on Thursday. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Việt Nam has emerged as a key destination for venture capital and private equity investments, driven by its dynamic economic growth and vibrant entrepreneurial sector, financial insiders said at a meeting on Thursday in HCM City.

Speaking at the inaugural event of the Vietnam Private Capital Agency (VPCA), Kobe Ge, Regional Head of China Capital Markets at the New York Stock Exchange, said: “Global investors are increasingly drawn to Việt Nam due to its robust economic expansion and favourable demographics.”

The Vietnamese government is also committed to supporting innovation through forward-thinking policies, he said.

Lê Hoàng Uyên Vy, chair of the VPCA, said: “Việt Nam is witnessing a pivotal moment as foreign venture capital and private equity funds increasingly seek investment opportunities and the government implements supportive policies to foster a thriving business climate.”

Experts have also noted the need for structured capital deployment, enhanced industry expertise, and effective support mechanisms, which remain critical for sustained growth in the country.

Bình Trần, vice chair of the VPCA, said: “While investment opportunities in Việt Nam are abundant, it still trails behind advanced regions such as North America, which accounted for nearly half of the total private capital fundraising in 2023.”

“There is a clear gap in capital flow and activity that can only be bridged through strategic initiatives and enhanced support for private capital sector,” he added.

$35b private investment target

The VPCA has set an ambitious goal of mobilising US$35 billion in private investment by 2035 as it aims to improve the investment climate by promoting best practices in venture capital and private equity, expediting capital deployment, and nurturing talent.

By uniting investors, industry partners, and entrepreneurs, it seeks to enhance access to high-impact opportunities and advocate for policies that contribute to a more favourable investment climate.

The agency also collaborates with industry leaders to establish a robust entrepreneurial framework, aiming to strengthen the nation’s venture capital ecosystem and promote entrepreneurship throughout Southeast Asia.

The inaugural event attracted nearly 100 investors from various venture capital and private equity firms worldwide, including representatives from Việt Nam, Singapore, Indonesia, Hong Kong (China), and the US. — VNS