Lee Jae-Woong, one of the three founders of Daum Communications (now Kakao) that provides web services (Source: forbesvietnam.com.vn)Hanoi (VNA) – Vietnamesestartups are expected to have more opportunities to receive investment andsupport from Korean investors, who are coming in droves in Vietnam, expertshave said.
“It is Vietnam’s turn to havenew unicorns,” Korean investor Lee Jae-Woong told the Forbes Vietnam TechSummit 2019 in mid-March, referring to local startup companies.
The Republic ofKorea (RoK) industrialised in the 1960s, developed information technology inthe 2000s, and is now entering the Fourth Industrial Revolution, said Lee, oneof the three founders of Daum Communications (now Kakao) that provides webservices.
Vietnam has allthree conditions, which is perfect for breakthrough growth, he said,highlighting the country’s infrastructure, good labour force and governmentsupport as other facilitators.
Nguyen HoangHai, CEO of Canavi, a startup that specialises in job placements for women, saidKorean investors are showing great interest in Vietnam.
Currently, theRoK is Vietnam’s biggest foreign direct investment (FDI) supplier, he said,adding that apart from investors, startups from the East Asian country havealso considered Vietnam a promising place to expand.
Hai took theexample of the opening of a representative office in Vietnam earlier this yearof Rehoboth Business Incubator, which was formed in 1998 and now has a networkof 59 business centres in the RoK.
Woowa Brothers - operator of the RoK’s leading food delivery platformBaedal Minjok - has also acquired Vietnam’s food delivery company Vietnammm,according to the CEO.
Hai attributed theVietnamese market’s attractiveness to favourable visa procedures and positiveimpacts of cultural exchanges between the two countries as well as promotionprogrammes between Vietnamese startups and RoK investors.
This year isexpected to see tough competition among investors, especially those fromforeign countries, who want to invest in quality Vietnamese startups, he said.
According tothe Korea Trade-Investment Promotion Agency (KOTRA), Korean investors areattracted by Vietnam’s consumer market of more than 96 million people.
In the past,investment has mainly went to services, retail, electronics, finance, bankingand insurance in Vietnam. In 2019, the fashion sector is expected to become anew magnet for investors.
The abundant,hardworking and skillful workforce, and political stability are also Vietnam’sadvantages, other experts said.
However, localstartups need consultations to map out specific operational orientations, they noted,suggesting stronger connectivity in the domestic innovative ecosystem to helpstartups.-VNA
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