TLDR:
- Vietnam’s corruption crackdown is impacting the startup scene in the country, along with other industries.
- The campaign has led to the dismissal of top officials and is raising concerns among venture capitalists.
Vietnam’s startup funding woes are being exacerbated by the country’s anti-corruption campaign, which has recently targeted top officials in various industries. This crackdown has created uncertainty in the business environment, causing venture capitalists to worry about the future of investments in the country. The dismissals of key figures, including two presidents and a top lawmaker, as well as officials from the stock exchange and regulatory bodies, have contributed to this gloomy outlook.
The campaign, which is unusual for the typically stable one-party state of Vietnam, has had a broader impact beyond just the property and banking sectors. Investors are now concerned about the overall macroeconomic sentiment, with the technology industry in Southeast Asia already experiencing a funding winter. The fear is that the crackdown on corruption may further exacerbate this funding challenge for startups in Vietnam and the region.
