Vietnam innovation funding faces capital mismatch and collateral hurdles

Venture capital investment in Vietnam reached $509 million in 2025, a 28% increase from the previous year, despite a decrease in the total number of deals. According to a report by the National Innovation Center, the Vietnam Private Equity and Venture Capital Association, and Boston Consulting Group, the market is seeing a trend of “selective confidence,” with two deals exceeding $50 million accounting for nearly half of the total capital.

There is a notable mismatch between available capital and the needs of the innovation lifecycle. While total private equity disbursement reached approximately $4.5 billion, most funds target mature enterprises. Mid-stage companies often struggle to find suitable financing. Furthermore, current R&D spending in Vietnam is approximately 0.5% of GDP, significantly lower than the government's target of 2% by 2030.

Key obstacles to innovation funding include discrepancies in loan terms, the difficulty of using intellectual property as collateral, differing risk appetites between traditional lenders and innovators, and the misalignment of capital stages with business lifecycles. The State Bank of Vietnam has highlighted the difficulty of valuing intangible assets, noting that the rapid pace of technological change makes pricing intellectual property a complex challenge for traditional banking assessments.