Raising Capital in Vietnam: A Beginner’s Guide for Entrepreneurs

Securing capital is a critical step for any startup. In Vietnam’s dynamic economy, funding comes from diverse channels. In 2021 Vietnamese startups attracted $1.4 billion in venture investment (about 90% from foreign investors). However, after global market headwinds, 2023 VC funding slowed to around $529 millions. Despite short-term dips, long-term forecasts remain strong: investors expect capital in Vietnamese startups to grow by 83% between 2025–2030, reflecting confidence in Vietnam’s fundamentals. Whether you’re launching an innovative tech venture or a growing SME, understanding Vietnam’s capital landscape is essential. This guide covers the main fundraising sources, steps to prepare for investment, and tips for success, with a nod to how LXNA Finance’s advisory services can support your efforts.

The Funding Landscape in Vietnam

Vietnam offers multiple funding options tailored to different stages of a startup. Notable sources include:

• Government Grants and Support Programs: The Vietnamese government actively supports startups through initiatives and grants. For example, Decision 844/2016 (amended 2021) allocates around $42 million to boost 800 entrepreneurial projects. Agencies like the National Technology Innovation Fund (NATIF) and the National Agency for Technology Entrepreneurship and Commercialization (NATEC) provide R&D grants and incubation support. In 2023 alone, specialized grants were awarded to early-stage climate-tech and fintech startups to help them become investor-ready.

• Venture Capital (VC) Funds: Both foreign and domestic VC firms actively invest in Vietnam. In 2021, foreign investors dominated, accounting for 90% of $1.4B VC funding. Global VCs are drawn by Vietnam’s strong tech talent and growing market. Domestic VC is also rising: Decree 38/2018 paved the way for local VC funds, and today Vietnam has 40 domestic VC funds managing over 100 billion VND ($4.2M). Leading VC players include IDG Ventures, 500 Startups Vietnam, and local bank-run funds. These firms typically seek high-growth tech startups in fintech, e-commerce, AI, and renewable energy.

• Angel Investors: Wealthy individuals and informal groups (angel investors) often provide seed or early-round funding. Angels not only fund but also mentor startup teams. Networks like the Vietnam Angel Investment Network (VAIN) connect angels with promising startups. Early-stage entrepreneurs should prepare to pitch their vision and equity plan to such investors.

• Incubators and Accelerators: Organizations like the National Innovation Center (NIC) or Saigon Innovation Hub run programs providing seed money, office space, and mentorship. Completing an accelerator can open doors to investors. Accelerators often culminate in demo days where startups pitch to dozens of VCs and angels.

• Corporate Venture Capital (CVC): Some large Vietnamese or international corporations establish CVC arms to invest in startups aligned with their business. Examples include Masan Ventures and Vinacapital’s funds. CVCs can offer strategic partnerships in addition to cash.

• Bank Loans and Financial Institutions: Although Vietnam’s startup culture is still evolving, specialized loans exist (e.g., subsidized loans through the Vietnam Bank for Social Policies). These loans often require collateral and predictable cash flows, so they’re more suitable for later-stage ventures or SMEs.

• Crowdfunding: Platforms like DreamStarter and FundStart allow startups to raise smaller amounts from a broad audience. Crowdfunding can validate product-market fit and raise working capital without giving away equity. It’s a growing alternative especially for consumer products.

• Initial Public Offering (IPO): A smaller number of Vietnamese startups eventually list on the stock market (Ho Chi Minh City or Hanoi exchanges) to raise large capital sums. This path suits mature startups meeting listing requirements.

Each option has trade-offs in terms of equity dilution, control, and conditions. Entrepreneurs often use a mix: for example, tapping grants and competitions in very early stages, then angels/seed funds, followed by VC rounds. According to NSSC, startups typically navigate a diverse range of capital sources including all of the above.

Steps to Prepare for Fundraising

Preparing for investment is as important as finding the investors. Follow these steps:

1. Develop a Solid Business Plan: Clearly articulate your value proposition, target market, business model, and milestones. Use market research and data to back your plan. Investors expect clear projections (revenues, expenses, cash flow) often for 3–5 years.

2. Build a Compelling Pitch Deck: Create a concise presentation covering problem, solution, market size, competition, team, financials, and funding needs. Tailor the narrative to each investor’s interests. For example, when pitching to a fintech investor, emphasize your regulatory compliance roadmap (particularly in Vietnam’s financial sector).

3. Legal and Financial Readiness: Ensure your company’s legal structure is appropriate (especially if seeking foreign investment). Commonly, Vietnamese startups create a Singapore holding company and then raise FDI into the local entity. Be ready for due diligence: have your corporate documents, IP filings, and audit-ready financial statements in order.

4. Valuation and Negotiation: Research comparable deals to set a realistic valuation. Early-stage rounds often leave significant equity on the table. Engage a consultant or mentor to negotiate term sheets — a lawyer or seasoned advisor can save you from unfavorable clauses.

5. Practice Your Pitch: Treat investor meetings like board presentations. Practice answering tough questions about your risks and assumptions. Seek feedback from experienced founders or consultants, and iterate.

This preparation often requires expertise. LXNA Finance offers investment advisory services to help startups polish financial models and pitches. An LXNA advisor can run mock pitches, review valuation strategies, and connect you to appropriate funding channels. Their background in Vietnamese startups and international markets provides practical guidance at each step.

Common Funding Options: Pros and Cons

Here are key funding paths with considerations for Vietnamese entrepreneurs:

• Angel/Seed Funding: Good for seed stage. Angels may require 10–25% equity for $50K–$200K. Pros: fast decisions, mentorship. Cons: high equity dilution; angels may want quick exits.

• Venture Capital: Suited for high-growth startups with proven traction. VCs invest larger sums ($500K to millions) in exchange for ~15–30% equity. Pros: significant capital, expert guidance, networks. Cons: rigorous due diligence; loss of some control; preferred stock terms can be complex.

• Government Grants: Non-dilutive (you don’t give equity). For example, NATIF offers matching grants for tech R&D (often 50% of R&D costs). Pros: free capital, validation. Cons: intense application processes; strict use of funds only for R&D or specific activities; limited amounts.

• Incubators/Accelerators: Usually combine small funding ($10K–$100K) with mentorship. Pros: package of support (office, mentoring, demo day). Cons: highly competitive selection; may require a commitment or equity (~5%).

• Crowdfunding: Good for consumer products or social causes. Pros: marketing buzz, proof of demand, no dilution. Cons: unpredictable amounts; success needs strong campaign; not suitable for B2B or niche tech.

• Bank Loans: Maintain equity ownership. Loans for startups are hard to get without collateral or revenue. Government-subsidized loans may have interest support. Pros: non-dilutive if repaid. Cons: debt burden; personal guarantees may be required.

• Strategic/Corporate Investment: If aligned with a larger company, a CVC investment can bring strategic advantages (distribution, credibility). Pros: partnership synergies. Cons: investor’s strategic goals may influence business direction.

Every startup’s funding journey is unique. A very early-stage app startup might start with a combination of personal savings, a small angel round, and a government tech grant. Later on, a solid Series A might involve multiple VCs.

Partnering with LXNA Finance

Raising capital often happens on tight timelines and with high stakes. Many founders find it beneficial to work with professional advisors. LXNA Finance offers tailored fundraising consulting to Vietnamese startups. Their services include:

• Investor Readiness: LXNA experts review your business plan and pitch materials, suggest improvements, and conduct dry runs. They ensure your story resonates with target investors (local or international).

• Connecting to Investors: Leveraging their network, LXNA can introduce you to appropriate angel groups, VC firms, or corporate partners. For example, through LXNA’s relationships, a fintech startup might meet financial VCs active in Southeast Asia.

• Structuring Deals: Consultants from LXNA can advise on deal terms, corporate structure (such as establishing a holding company abroad if needed), and valuation. This guidance is crucial since many Vietnamese startups face requirements (like the “offshore parent company” practice) that demand expert handling.

By working with a consultant, entrepreneurs gain experience without trial-and-error. In fact, data shows that startups using consultants and advisors can reduce time-to-funding and negotiate better terms. With LXNA’s blend of local expertise and international finance acumen, Vietnamese founders can improve their fundraising outcomes while staying focused on product and operations.

Sources: NSSC (2025) nssc.gov.vn; OnDemand International (2023) ondemandint.com; Vietnam Briefing (2023) vietnam-briefing.com.