🧠 Food for thought

Implications, context, and why it matters.

Vietnam’s innovation rank hides a funding gap with Singapore and Indonesia

•  Vietnam rose to 44th in the Global Innovation Index, a global ranking of innovation 1. Yet startups raised only 6% of Southeast Asia’s $2 billion in H1 2025, while Singapore took 92% 1.
•  In 2023, venture capital (VC) investment dropped 17% to $529 million, and deal volume slid 40% to the lowest since 2018 2. Rounds under $500,000 fell 50%, signaling investor caution despite the PM’s optimism on ecosystem improvements 2.
•  About 40 local VC funds manage $4.2 million, far below foreign VCs that supplied 90% of investment in 2021 2. Many startups set up an offshore parent, often in Singapore, to fit foreign investor terms 2.

Cloud and data center operators can use Vietnam’s new direct power purchase agreements for green infrastructure

•  Decision No. 2161 issued in September 2025 shifts digital infrastructure to private investment and keeps 100% foreign ownership for data centers 3. It sets up a direct power purchase agreement (DPPA) so large users can buy power from generators for green supply 3.
•  Under Decree 180/2025, the public-private partnership (PPP) framework offers state participation of 50% to 70% of cost 4. It waives revenue increase sharing for the first three years and exempts investors from standard approval steps 4.
•  Provinces plan to issue data center master plans by December 2026 43. Providers can map locations and plan builds around the Ministry of Finance PPP procedure handbook expected in January 2026 43.