AI Boom Draws Foreign Capital Into Vietnam’s Next Growth Sectors

Vietnam Launches Its First Nationwide AI Hackathon

Vietnam’s National Innovation Centre (NIC) has launched the Vietnam AI Innovation Challenge 2026, the country’s first nationwide AI-native hackathon, aimed at connecting AI talent with real-world business and societal challenges. The initiative reflects a growing focus on turning technical capabilities into practical applications and accelerating the commercialization of AI solutions.

Participants will develop AI products addressing challenges across manufacturing, logistics, education, healthcare, public services, and smart cities. Rather than focusing solely on research or coding competitions, the program is designed to create opportunities for developers to apply AI in operational and business environments, helping bridge the gap between technical expertise and market demand.

The challenge is jointly organized by NIC and Meta, with support from AI for Vietnam and Duy Tan University. Organizers expect to attract between 2,000 and 3,000 developers and young innovators, strengthening Vietnam’s AI talent pipeline while creating connections between emerging talent, enterprises, investors, and global technology networks.

The initiative also places a strong emphasis on deployment and commercialization. Winning teams may have the opportunity to pilot their solutions with businesses and gain exposure to major technology companies including Google, Microsoft, TikTok, and Netflix. By fostering collaboration between developers, businesses, and investors, the program aims to support the development of an AI ecosystem capable of transforming technical innovation into scalable products and economic value.

Vietnam’s Private Capital Market Rebounds After Correction

Vietnam’s private capital market rebounded strongly in 2025, with total investment reaching $4.5 billion across 149 deals, marking its highest level since the market correction that followed the 2021 investment boom. The recovery was driven by renewed investor confidence and improving market fundamentals, signaling a more disciplined phase of growth for the country’s private investment ecosystem.

Private equity (PE) remained the primary growth engine, accounting for $4 billion in total investment. Venture capital (VC) activity also recovered, with funding rising 28% year-on-year to $509 million despite a decline in deal volume. The trend suggests investors are becoming increasingly selective, deploying larger amounts of capital into a smaller number of opportunities with stronger long-term growth prospects.

Artificial intelligence emerged as the leading VC investment theme, attracting approximately $130 million between 2023 and 2025, a thirteenfold increase over the period. Healthcare, retail, and climate technology also gained momentum as investors increasingly focused on sectors linked to long-term economic transformation. In the PE segment, activity strengthened with the return of international investors, while essential consumer businesses attracted around $1.2 billion in investment.

Market infrastructure improvements are also creating more favorable conditions for fundraising and exits. A projected IPO pipeline worth between $3 billion and $5 billion during 2026–2027 is expected to expand exit opportunities for investors, a critical factor in attracting long-term PE and VC capital. As capital market reforms continue and liquidity conditions improve, Vietnam’s private capital market appears to be entering a more mature stage of development, supported by stronger investment activity and clearer pathways to value realization.

Australia Backs Vietnam’s Climate-Tech Startups

Australian Development Investments (ADI) has committed $10 million to Do Ventures Fund II, marking its first investment under a Vietnam-focused strategy that combines climate and gender-lens investing. The investment is designed to support early- and growth-stage small and medium-sized enterprises (SMEs) developing solutions in energy transition, climate adaptation, sustainable consumption, advanced manufacturing, and AI-enabled climate technologies.

The commitment forms part of the Australia–Vietnam Private Sector Clean Energy Partnership, which aims to mobilize more private capital into climate-focused businesses. Beyond providing funding, ADI will work closely with Do Ventures to strengthen climate investment capabilities, enhance environmental, social and governance (ESG) practices, and improve impact measurement across the fund and its portfolio companies. The partnership also highlights support for women-led fund managers, reflecting efforts to address the underrepresentation of women in the venture capital and private equity industries.

The deal underscores growing international confidence in Vietnam’s climate innovation ecosystem and the role local venture capital firms can play in scaling sustainable businesses. As climate technology gains traction as an investable venture category, the sector is attracting not only commercial investors but also long-term institutional and development-focused capital.

Do Ventures launched Fund II following its first $50 million fund, which has backed 22 portfolio companies to date. With the new commitment, the firm is expanding its investment platform while strengthening its ability to support startups pursuing sustainable growth and climate-related innovation in Vietnam.

Pharmacity Secures Growth Capital From UK Investor

Vietnam’s leading pharmacy chain Pharmacity has secured growth capital from LeapFrog Investments to support its next phase of expansion, marking a new stage in the company’s evolution from rapid store rollout toward building a broader healthcare platform. The investment comes after Pharmacity achieved consecutive profitable quarters since the fourth quarter of 2025, signaling a stronger operational foundation as it prepares to accelerate growth.

The company plans to expand beyond Vietnam’s largest urban centers, focusing on Tier II and Tier III cities where access to modern healthcare and pharmacy services remains less developed. Pharmacity currently operates a network of more than 1,100 stores nationwide, providing the scale needed to extend healthcare access to a wider population while strengthening its presence across the country.

Alongside network expansion, Pharmacity is broadening its role within the healthcare ecosystem. In addition to pharmacy retail, the company is developing services that include healthcare consultations, diagnostics, and pharmacy benefits management, reflecting a strategy to build a more integrated healthcare platform that addresses a wider range of consumer needs.

The company already serves nearly 19 million loyalty customers and offers more than 7,000 healthcare and wellness products. This extensive customer base provides a foundation for introducing additional healthcare services while deepening engagement beyond traditional pharmacy transactions.

The partnership also brings sector-specific expertise from LeapFrog Investments, which has a track record of healthcare investments globally, including a successful investment and exit in Goodlife Pharmacy. Beyond providing capital, the collaboration underscores growing investor confidence in Vietnam’s healthcare sector and the long-term opportunity to expand access to modern healthcare services across the country.

Genesia Ventures Raises $113M For Fund IV

Genesia Ventures has completed the final close of its fourth fund at $113 million, securing commitments from leading institutional investors and financial institutions across Japan and international markets. The fundraising comes at a time when venture capital is becoming increasingly selective, with greater emphasis placed on long-term value creation, disciplined execution, and sustainable business fundamentals rather than growth alone.

Vietnam remains one of Genesia Ventures’ key strategic markets. Across its four funds, the firm has invested in 15 Vietnamese startups, including BuyMed, M Village, Kamereo, and Fundiin. The continued allocation of capital to Vietnam reflects growing confidence in the country’s startup ecosystem as founders increasingly focus on building resilient businesses with sustainable growth models.

Rather than concentrating on specific industries, Genesia Ventures structures its investment strategy around long-term structural shifts that are expected to shape future economic development. Key areas of interest include artificial intelligence, energy transition, blockchain, computing power, and life sciences. This approach is designed to identify opportunities emerging from fundamental technological and societal changes across the region.

Alongside investment activities, the firm is advocating a broader view of startup financing. Genesia Ventures emphasizes the importance of balanced capital structures that combine equity, debt, and alternative financing solutions, helping companies reduce reliance on a single funding source and strengthen long-term financial sustainability as market conditions evolve.

Support for founders also extends beyond capital. Through Genesia Orbit Vietnam, the firm provides operational expertise and access to regional networks spanning Japan, Southeast Asia, and India. By combining funding with market knowledge and cross-border connectivity, Genesia Ventures is seeking to help startups build stronger foundations for long-term expansion and regional growth.

Genesia Ventures is an early-stage venture capital firm operating in Japan and Southeast Asia, with a strong belief in the long-term potential of Vietnam’s digital economy. Beyond providing capital, the fund actively supports startups through strategic guidance and connections to a broader regional network.