HO CHIH MINH CITY: VietNam’s private capital market is entering a new growth cycle, with both private equity (PE) and venture capital (VC) investments rebounding strongly after a prolonged slowdown, according to a report.
The Vietnam Innovation and Private Capital Report, jointly published by the National Innovation Centre, the Vietnam Private Capital Agency (VPCA) and Do Ventures, showed that total private capital investment reached approximately US$4.5bil across 149 deals last year.
The PE led the recovery, hitting a record US$4bil, while VC investment rose 28% year-on-year to US$509mil.
Although the number of VC transactions declined to 104, average deal sizes increased significantly, driven by investments ranging from US$3mil to US$10mil and deals exceeding US$50mil.
The report found that Series A and Pre Series A fundraising activity remained resilient, while the number of late stage C+ transactions reached its highest level since 2022, reflecting the growing maturity of Vietnam’s startup ecosystem.
In the PE segment, mid-market investments recorded a historic high of 12 transactions. Essential consumer goods attracted US$1.2bil, the largest amount in a decade, while growth equity investments posted their strongest recovery since 2021.
International investors are also returning in greater numbers.
The number of active PE funds more than doubled to 48, the highest since 2016.
Singapore remained the leading source of VC investment, while investors from the United States and Europe expanded their presence in the market.
According to Lê Hoàng Uyên Vy, chairwoman of VPCA, Vietnam’s venture capital market has moved beyond its downturn and is now on a clear recovery path.
She said investors were concentrating larger amounts of capital into fewer companies, reflecting stronger confidence in carefully selected businesses.
One of the most notable trends highlighted in the report was the rapid rise of artificial intelligence (AI) investment.
Funding for AI startups surged to US$130mil last year. Between 2023 and 2025, AI investment increased 13-fold, while the number of transactions nearly doubled to 23 deals. The report said the trend underscored investor confidence in Vietnam’s expanding AI startup ecosystem.
Beyond AI, health technology, retail technology and climate technology also attracted increasing levels of investment, signaling a shift towards sectors linked to long-term economic transformation.
Ben Sheridan, managing director at Boston Consulting Group said Vietnam had emerged as one of the region’s strongest VC recovery stories. — Viet Nam News/ANN
