Vietnam’s climate tech startups face gaps in funding

November 04, 2026 | 17:02(0) user say
Recorded climate tech funding in Vietnam declined 52 per cent in 2025 to $49.86 million across 33 transactions, down from $104.20 million across 60 transactions in 2024.

While the 52 per cent drop appears drastic, it was heavily skewed by 2024’s outlier total of $70 million Series A investment in Techcoop. Setting aside the largest deal in each year, funding fell a more modest 19 per cent, from $34.2 million to $27.86 million.

These findings come from a set of three Vietnam Climate Tech Ecosystem Reports focusing on climate tech funding, workforce, and women’s entrepreneurship, released on November 3 by New Energy Nexus Vietnam, SNV Vietnam, World University Service of Canada, and RMIT University Vietnam, and supported by Swiss EP.

Despite continued interest from potential regional funders, the financing gap between early-stage grants and larger commercial rounds remains a challenge. No recorded deal closed within the $350,000 to $1 million range in 2025, compared with four in 2024. Specifically, women-founded enterprises were among the most vulnerable to this gap, as many face more hurdles in navigating collateral requirements and receiving appropriate dual-mandate support.

The report also records a shift in financing composition: equity funding fell sharply, while debt financing rose from $3 million to $20 million, driven by the facility for CME Solar. The findings point to the need for financing pathways that can help enterprises progress from early-stage support to larger commercial investment.

“Funders told us they have money for Vietnam’s climate startups, and founders told us they need it, yet in 2025 not one recorded deal closed between $350,000 and $1 million, the stage where a company moves from grants to its first major investment,” said Thao Tran, country director at New Energy Nexus Vietnam.

Alongside the funding gap, enterprises face a shortage of experienced talent. 73 per cent of surveyed enterprises ranked technical and engineering skills among their top three workforce needs, while 50 per cent identified these skills as the hardest to recruit. The findings point to demand for experienced professionals who can combine technical expertise with interdisciplinary capabilities. The skill needs also go beyond technical skills for climate tech enterprises.

“Capital has arrived faster than the people needed to deploy it. For climate tech enterprises to grow, Vietnam needs more experienced, interdisciplinary professionals, and closer links between training, hiring, and finance to develop them,” said Lindsay Umalla, energy sector leader of SNV in Vietnam.

Women-founded enterprises were among the most exposed to the mid-sized funding gap. They received approximately 56 per cent of recorded grant funding in 2025, but only around 1.7 per cent of total recorded climate tech capital. The report examines barriers that may limit their access to larger financing opportunities.

“Women feel this gap most: they founded about a third of Vietnam’s active climate tech enterprises and won more than half of last year’s grant funding, yet received just 1.7 per cent of all climate tech funding,” Tran said. “Loans designed for young companies, financing repaid from revenue, and guarantees that stand in for property collateral would carry founders across that gap, and they matter most for women, many of whom don’t hold the land titles banks ask for.”

The report also finds out that energy transition led sector funding in 2025, attracting $26.71 million – a 72 per cent increase from the previous year. It was also the only sector to secure funding across all three financing types: venture equity, debt, and grants.

Vietnam recorded 29 climate and innovation-related policies in 2025, while 39 per cent of funded enterprises in the report’s dataset incorporated AI into their work.

SmartSolar brings total funding to $3.15 million with European financing On March 17, Vietnam-based rooftop solar startup SmartSolar closes a debt financing round, bringing total funding to $3.15 million in combined equity and debt as it scales financing for small and medium-sized businesses struggling with rising electricity costs.

Vietnamese startup Alternō named global finalist in clean energy award Vietnamese climate tech startup Alternō has been named a top-three finalist in a prestigious global energy award, marking a significant milestone for the country’s emerging clean technology sector.

VIFC-HCMC, Touchstone Partners, Temasek Foundation to collaborate on green economy On May 29, the Vietnam International Financial Centre in Ho Chi Minh City, Touchstone Partners and Temasek Foundation signed a trilateral strategic collaboration agreement to mobilise financial resources to advance technology development, contributing to Vietnam’s green transition.