Vietnam Edtech market attracts foreign investors

According to the research "Vietnam Technology Investment and Innovation 2024," produced by the National Innovation Center in partnership with Do Ventures, investment in startups fell by 17% in 2023. However, the education technology (Edtech) industry was an exception, getting the most investment to date, up 107% from the previous year.

According to statistics, Vietnam presently has 750 Edtech businesses in operation, providing a diverse variety of hardware, software, and service offerings. Many significant local and foreign technology companies, including Viettel, VNPT, Mobifone, Samsung, and ViewSonic, are involved in this industry.

While the market for Edtech products is wide, two primary categories receiving significant industry investment are language instruction and K-12 education (preschool and general education). In 2023, a record year for Edtech investment, numerous multinational goods joined the Vietnamese market, including the IELTS Science and Global Exam. Several Vietnamese online education platforms received considerable investments from funds and investors, with the goal of improving quality and promoting the use of new technologies to enhance the learning experience and facilitate individualized learning.

As a result, the Edtech business has seen the expansion of various domestic online platforms. For example, VUIHOC, an online education platform, was named Southeast Asia's lone representative in the 2024 Edtech "Rising Stars" list. Similarly, VioEdu, an AI-powered learning assistant, received a Silver Award at the 2024 ASEAN Digital Awards.

The trend of incorporating emerging technology, such as AI, into Edtech products is projected to continue its rapid expansion. According to the Vietnam Edtech White Paper 2024, the number of AI-integrated B2C goods will increase significantly this year.

Aside from K-12 Edtech goods, the market is expected to witness an increase in offerings geared at skill development and retraining, particularly courses on AI, programming, and technology, owing to the government's strategy of investing in technology workforce development.

Dr. To Hong Nam, Deputy Director of the Information Technology Department (Ministry of Education and Training), highlighted the Vietnamese Edtech market's enormous potential, citing 22 million students and 1.6 million teachers. These statistics represent almost one-fifth of the country's population, creating enormous prospects for creative firms.

Although many activities, including education, have returned to in-person formats after COVID-19, the demand for Edtech products remains high. Currently, the expectations of parents and their readiness to invest in their children's education in Vietnam are comparable to those in developed Asian countries like Japan and China.

Vietnamese students are increasingly interested in and excited about STEM education. Approximately 89,000 STEM lessons were implemented during the 2022-2023 academic year, a number that is expected to grow in the current school year as more schools and classes prioritize this subject.

Notably, Vietnam's Edtech environment has seen the introduction of various foreign Edtech products. In 2023, items such as IELTS Science and Global Exam hit the market. Renowned overseas firms such as Samsung and ViewSonic also offered hardware items and IoT solutions for the development of smart school models.

In 2024, the Edtech market in Vietnam is expected to generate USD 364.70 million in sales. The online learning platform industry is predicted to be worth USD 228.70 million, with an average income per user of around USD 42.69.

The Edtech White Paper 2024 highlights that Vietnam ranks among the top 10 fastest-growing Edtech markets globally. Within Southeast Asia, Vietnam is one of the top three most promising Edtech countries, alongside Singapore and Indonesia, contributing 20% of the region's total Edtech sector.