Golden Gate Ventures, Access Ventures, Burda Principal Investments, 500 Startups, Jungle Ventures, and Cyberagent Ventures, among others, have signed an agreement with Vietnamese government to commit VND10 trillion (US$425 million) investment in Vietnamese startups for the next three years.

The agreement was made during the Vietnam Venture Summit. A collaboration was initiated by Vietnam’s ministries of investment and technology and science with Golden Gate Ventures on 10 June 2019.

The Vietnam Venture Summit is an event that seeks to connect investors to work together. Apart from the signing between the Ministry of Investment and Planning and Golden Gate Ventures, several other partnerships were signed off to support the growth of Vietnamese startups.

Additionally, Vina Capital also has entered into an agreement with US$1 billion-worth Mirae-Naver Asia Growth Fund, in which Mirae Asset invests an undisclosed amount in VinaCapital Ventures and Naver to provide access to its portfolio companies to facilitate their expansion plans.

The summit also played witness to a US$1.4 million investment made by South Korean venture firm DTNI into Insignia Ventures-backed real estate platform Propzy.

“Vietnam is getting more attention from international investors and we believe there will be enough opportunities for them to deploy the committed capital”, said Director of the Ministry of Science and Technology’s market development division, Pham Hong Quat.

Vietnam had approximately 400 startups in 2012. By 2018, that number had grown to 3,000, especially due to the US$890 million funding which occurred in the same year.

Vinnie Lauria, the founding partner of Golden Gate Ventures, highlighted that despite the challenges in investment procedures that are still present in Vietnam, the number of venture capitals that are willing to commit to investing into the country is a testament that Vietnam has become one of the key strategic markets in the region.