The next SEA thing: VCs eye Vietnam, Philippines as the next Indonesia

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Hi readers,

I grew up seeing friends and family in the Philippines search for greener pastures. That usually means leaving home for good to migrate either to the US or Australia to have better opportunities in life.

In Southeast Asia, investors are doing something similar. While they aren’t leaving the region, they are moving away from their usual destinations such as Singapore and Indonesia for capital gains.

Their next targets? The Philippines and Vietnam.

In this week’s Big Story, I explore why homegrown VCs in these countries are excited despite headwinds while some international investors are still hesitant to funnel their capital into these markets.

Local VCs argue that founders in the Philippines and Vietnam have proven they can build sustainable business models in spite of the capital crunch. But geopolitical tensions and regulatory issues are among the reasons why some have adopted a wait-and-watch approach instead.

In AI Odyssey, I delve into another tale: big tech’s move to Southeast Asia for the backend needs of their AI products.

Last week, Microsoft CEO Satya Nadella was touring the region, pledging billions of dollars to build infrastructure in support of the company’s cloud and AI needs. The numbers are historic, but I wonder if that could mean more than just financial benefits for all parties.

— Elyssa

THE BIG STORY

Vietnam, Philippines attract VCs deterred by pricey Indonesian market, but headwinds bring hesitation

Image credit: Made by Tech in Asia using Midjourney

Homegrown VCs believe startups in the Philippines and Vietnam have high potential for profitability despite operating in restrictive environments.

AI ODYSSEY

Promising AI projects we’re noticing

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