Is the number of unicorns in Viet Nam too small? ｜SEA Now

Technology knows no boundaries, but it also has its own unique process. Here, we will review with you what events have happened in the field of science and technology Internet in Southeast Asia this week (2024.09.02-2024.09.08).

Since the start of Southeast Asia's tech internet boom in 20 years, this emerging market region has witnessed the emergence of many unicorns. However, it is not difficult to find that the gathering place of these unicorns often means Indonesia, which is known for its huge population (market), or Singapore, which has its own well-developed technology ecology.

Outside of the "frequent headlines" areas, such as Viet Nam, one of the "less common" regions in this column, there are currently eight unicorns in Viet Nam, according to Tracxn. By way of comparison, Tracxn said the number of local startups is more than 9,400.

Correspondingly, turning to Singapore and Indonesia, the two most popular regions in Southeast Asia, the number of unicorns has reached 27 and 14 respectively, and the number of start-ups in both is more than 33,800 and more than 20,000 respectively, according to Tracxn.

This contrast is not insignificant. But as mentioned above, it is an undeniable fact that companies can only grow faster in regions with relatively mature foundations, whether for venture capital firms or entrepreneurs, and one of the main reasons for the startup landscape that Southeast Asia is currently presenting.

Of course, for Southeast Asia, this accelerating startup ecosystem is also driven by a more accelerated digitalization process: companies from the three carriages of the digital economy – e-commerce, fintech and logistics – account for the vast majority of the unicorn list in Southeast Asia. And taking Viet Nam as an example, according to statistics, in addition to the local old unicorn enterprise (also the local technology Internet giant) VNG, the remaining seven unicorns in Viet Nam almost all broke the valuation threshold around 21 to 22 years.

Turning to "before" the process, Viet Nam said in '19 that it hoped to have at least five unicorns by 25 years. And by 30 years' time, that number is expected to rise to 10 – compared to the current 8, which does not seem to be a "small" number, and has even significantly exceeded expectations at the time.

Looking ahead, as far as the digital economy itself is concerned, some data predict that the total GMV of Viet Nam's digital economy is expected to grow from US$30 billion in 23 years to US$43 billion over a 25-year period, achieving a compound annual growth rate of 20% – based on this growth rate, Viet Nam will also tie with the Philippines for the first growth rate in Southeast Asia. From this point of view, it is reflected in the unicorn level, and for Viet Nam, it is also expected to show a more "unexpected" level at that time.

Okay, without further ado, let's get to the point of this issue.

Industry & Dynamics

MINISO's world's largest store opened in Indonesia, with a performance of 1.18 million on the first day: A few days ago, MINISO's flagship store in the world's largest store, Central Park, Jakarta, Indonesia, was officially unveiled, opening a new chapter in the global super store. On the first day of opening, the store's sales exceeded 1.18 million yuan, setting a new single-day sales record for MINISO's global stores. According to the financial report data, the total revenue of MINISO Group in the first half of 2024 increased by 25% year-on-year to 7.76 billion yuan, of which the overseas business revenue exceeded 2.7 billion yuan, achieving a year-on-year growth rate of 43%, becoming an important engine to promote the company's performance growth.

Porsche Design Tower in Bangkok to start construction next year: Porsche Design announced plans to build a car-inspired high-rise building in Thailand's capital Bangkok, bringing high-end luxury to wealthy car enthusiasts and their car collections, as reported by newatlas on September 2. Called the Porsche Design Tower Bangkok, the 95-metre-tall building is a massive building.

Changan Automobile: Thailand new energy base is expected to be put into operation in Q1 next year: On September 4, Changan Automobile said in an institutional survey that Changan Automobile's first overseas base "Thailand New Energy Base" is progressing smoothly according to the construction plan and is expected to be officially put into operation in the first quarter of next year. At the same time, the company is demonstrating the construction of bases in Central and South America and Europe, and helping the rapid and benign development of new energy vehicles through globalization.

Gojek will withdraw from the Viet Nam market: Moving Point has learned that Viet Nam media recently reported that after operating in Viet Nam for 6 years, Gojek announced that it will stop operating in the market area on the 16th of this month. Gojek said the decision was made after parent company GoTo assessed its market position in Viet Nam in order to strengthen business operations and align with the company's long-term growth strategy.

Intel confirms that there is no change in the new plan for the new advanced packaging factory in Penang, Malaysia: It is reported that the local media in Malaysia The Malaysian Insight recently reported that an Intel spokesperson said that Intel's plan to build a new advanced packaging factory in Bay, Penang, Malaysia has not changed.

An Intel spokesperson noted: "Malaysia will remain an important market because of our long and proud history here. ”

Viet Nam unicorn VNG says it is facing local investigation: According to foreign media, Viet Nam unicorn VNG revealed that the company is currently under investigation by the Ho Chi Minh City police. VNG did not disclose the nature of the investigation and how long it will last. However, VNG said it "will continue to actively cooperate with the authorities" during the investigation and that the company's operations remain normal.

As a background, the media said that VNG is considered one of the most promising tech startups in Viet Nam. The media pointed out that previously, VNG had planned to be listed in the United States. But the company withdrew its IPO registration in United States in January.

Investment and financing

MSME lending platform Validus secures US$50 million in financing: Founded in 2015, Validus provides financing and lending services to micro, small and medium-sized enterprises (SMEs) in Southeast Asia through its one-stop financial solutions, covering Indonesia, Singapore, Thailand and Viet Nam.

Roadside assistance provider Bateriku secures $7.4 million in funding: Founded in 2014, Bateriku focused on battery swapping for cars in its early years. Over the years, Bateriku has expanded its business to include a range of roadside assistance services including battery replacement/recycling, tire repair/replacement, trailers, etc.