Vingroup launches USD 150 million fund to support Southeast Asian start-ups

Vietnam’s biggest conglomerate Vingroup JSC has announced that it is setting up a USD 150 million fund that will support Singapore-based technology start-ups across Southeast Asia – with artificial intelligence, semiconductors and cloud computing as its sectors of focus. The initiative shows Vingroup shifting strategic gears towards becoming a conglomerate of technology.

The USD 100 million will come from Vingroup’s existing investment portfolio, while founder, Pham Nhat Vuong, Vietnam’s richest man, will add another USD 50 million from personal wealth. Firstly, VinVentures will concentrate on Vietnamese start-ups and then will stretch its arms to countries including Singapore, Indonesia and Philippines.

Previously, Vingroup has backed various ventures through other funds such as Vingroup Ventures and VinTech City highlighted its commitment to invest in technology start ups. Vingroup is undertaking this move as part of its ambition to diversify its business beyond its core real estate businesses in particular, through its electric vehicle subsidiary, VinFast Auto Ltd.

Over that time, Vietnam has become a centre for start up investments. In 2021, the country became a hotbed of funding, welcoming record amounts in the USD 2.6 billion raised in that year, up from the previous USD 700 million the previous year, according to a joint report by Google, Temasek Holdings, Bain & Co. Despite that, a new report from Do Ventures and Vietnam National Innovation Center showed that total capital invested in Vietnamese start-ups has shrunk to USD 529 million last year, with Vietnam placed third in the region in start-up funding.

In undertaking this new venture, Vingroup hopes to utilise the technological potential of the region and drive breakthrough innovation in what is a rapidly advancing market.