Vietnam’s fintech sector sees sharp decline in funding in 2023

Vietnam’s fintech funding has nosedived by 67% in H1 2023, reaching just USD6.2m from USD17.9m the previous year, according to a report by Tracxn Technologies Ltd. This is a significant drop from the USD201m secured in H1 2022. The substantial decline is attributed to the extended funding winter, global macroeconomic uncertainties, and a lack of late-stage funding rounds. Early-stage investments dominated the few funding activities, contributing USD5.1m. Quarter-on-quarter analysis shows a staggering 99% drop in Q2 2023 compared to Q2 2022. Despite this downturn, experts are hopeful for a rebound as Vietnam’s economy is expected to grow by 6.3% in 2023. The government’s National Digital Transformation Program also promises to boost the sector in the long run.