Vietnamese Edtech startups have been drawing strong investor interest in the previous year . The country’s Edtech market is estimated to be worth around 3 billion USD in 2023 (Edtech Agency, 2023). The growth rate of Edtech in Vietnam is quite high, at around 20.2% per year from 2019 to 2023, making Vietnam one of the top 10 fastest-growing Edtech markets in the world (Ken Research, 2019).
In this article, we delve into notable developments surrounding key Edtech companies and industry updates in Vietnam throughout the preceding year of 2023.
Vietnam Edtech Start-ups 2023 Highlights
Vietnam’s English learning app ELSA raises $20m in fresh funding from UOB
In September 2023, the AI-based English learning app ELSA, backed by Vietnam Investment Group (VI Group), is understood to have raised $20 million in a new funding round led by UOB Venture Management, the private equity arm of Singapore-based bank UOB (Nikkei Asia, 2023). Based in San Francisco and Ho Chi Minh City, the company secured $7 million in its Series A round led by Gradient Ventures in 2019 and secured a pre-Series A funding of $3.2 million led by Monk’s Hill Ventures for talent acquisition and technology development in 2018.
The local Edtech firm Vuihoc bags $6m in TNB Aura-led round
In August 2023, the local EdTech firm Vuihoc has raised US$6 million (vietnamnews.vn, 2023) in its series A funding round led by TNB Aura In a bid to capitalize on the market’s high demand. Founded by Lam Do and Thu Do in 2019, Vuihoc has amassed over 1.1 million users, primarily from Tier 2 and Tier 3 cities. The platform offers educational content, including video lectures and quizzes, and has an inventory of over half a million resources.
TEKY Alpha JSC raised $5 million in funding from Singapore-based impact investor
In May 2023, Vietnamese Edtech startup TEKY Alpha JSC raised $5 million (Nikkei Asia, 2023) in funding from Singapore-based impact investor Sweef Capital, which made its first investment from its Southeast Asia Women’s Economic Empowerment Fund.
MindX – a startup that offers training in technology and programming received $15 million in a Series B
In April 2023, the Vietnamese Edtech startup MindX also raised $15 million (TechCrunch, 2023) in a Series B round led by education-focused private equity fund Kaizenvest. Other investors that participated in the round included Thailand-based education company Aksorn; Japanese HR firm Mynavi; and existing investor Wavemaker Partners, which had led the startup’s Series A round.
The support for Edtech in Vietnam
It is evident that the Edtech market in Vietnam is gradually proving its potential to both domestic and foreign investors. As of June 2023, about 70 investment funds have poured more than 400 million USD (Edtech Agency, 2023) into Vietnamese Edtech startups. This, in turn, is contributing to the enhancement of the quality of education in the country.
Here are some noteworthy updates from government units, organizations, and businesses in the Edtech sector over the past few year:
Government Initiatives and Policies:
The government is also making efforts to create favorable conditions and build a stable legal framework for the overall business environment and startup ecosystem to develop and innovate
- Creating better conditions for foreign investors: amending and enacting laws on investment, M&A, and venture capital investment. According to VNA, as of December 31, 2021, Vietnam had 605 valid foreign-invested education cooperation projects with a total investment of over 4.57 billion USD (VnEconomy, 2022)
- Supporting digital transformation, applying technology to production, business operations, and management of enterprises, especially small and medium-sized enterprises.
- Government agencies and organizations play an increasingly active role in promoting incubation programs and accelerating startups. (e.g InnoLab Asia coordinates with the Department of Science and Technology and corporate partners to promote startup support programs like Crowdpitch Vietnam, Vietnam Innovation Summit, ect.)
Global Edtech Conferences in Vietnam:
Conferences that gathering leading experts in the field of education held in Vietnam are opportunities for businesses, startups, governments and educational units to work together towards initiatives and solutions for the future of domestic Edtech market. For example, the EdTech Asia Vietnam conference was held in 2021 to discuss technology, innovation, and rapid market growth for education sector.
Edtech Competition and Acceleration Programmes:
Startup competitions and acceleration programs with the participation and sponsorship by the government, businesses, corporations, etc. have contributed to creating a good foundation of expertise, mentoring, technology and finance for early stage Edtech startups to grow and to scale up. For example, Crowpitch Edtech 2023 hosted by InnoLab Asia, Vietnam Immersion Program: EdTech 2023, Edtech Village – Techfest Vietnam, Australia-Vietnam EdTech Innovation Exchange, etc.. are typical programs that gather and support continuing education startups to grow and have investment and mentoring resources.
In conclusion
Amid the undulating currents of the global economy, the field of educational technology in Vietnam stands resilient, drawing potent investments. The market is constantly growing day by day with the attention, support, and sponsorship from many domestic and foreign units contributing to creating a greater prospect for the future of Edtech in Vietnam.
Refferences
Edtech Agency. (2023). Vietnam’s EdTech Ranking & White Paper 2023 – Edtech Agency. [online] Available at: https://edtechagency.net/product/vietnams-edtech-ranking-white-paper-2023/.
Nikkei Asia. (2023). Vietnam English learning app ELSA raises $20m. [online] Available at: https://asia.nikkei.com/Spotlight/DealStreetAsia/Vietnam-English-learning-app-ELSA-raises-20m [Accessed 10 Jan. 2024].
Shu, C. (2023). Edtech MindX wants to build ‘little Silicon Valleys’ across Vietnam. [online] TechCrunch. Available at: https://techcrunch.com/2023/04/11/mindx-series-b/.
vietnamnews.vn. (2023). Edtech VUIHOC raises $6 million to promote AI to personalise experiences. [online] Available at: https://vietnamnews.vn/economy/1551921/edtech-vuihoc-raises-6-million-to-promote-ai-to-personalise-experiences.html.
VnEconomy. (2022). MoET holds conference on cooperation and investment in education. [online] Available at: https://vneconomy.vn/moet-holds-conference-on-cooperation-and-investment-in-education.htm.
Ken Research. (2019). Vietnam E-Learning Market, Top Players In Vietnam E-Learning Market, Competitors in Vietnam E-Learning Market – Ken Research. [online] Available at: https://www.kenresearch.com/education-and-recruitment/education/vietnam-e-learning-market-outlook/248568-99.html.
