Edutech Market in Vietnam
1. Market Overview
Edtech market in Vietnam is the 2nd largest and the most prospective market in ASEAN. According to Nextrans, a venture capital company, the market has been expected to grow at a CAGR of 20.2% from $1.2 billion in 2018 to $4.34 billion in 2025.
Many Vietnamese companies are harshly competing to occupy the market mainly in the fields of kids, K12(Formal education), students and worker, languages.
2. Major market driver
2-1. Young Population
Vietnam is a country with the population of nearly 100 million, and it possesses a workforce of approximately 55 million between the ages of 15 and 65, which is close to twice the level of South Korea.
Furthermore, it has a very youthful population structure, with the school-age population under the age of 24 accounting for about 36% (36 million people) of the total population.
In addition to having a youthful population structure, Vietnam, along with Indonesia and the Philippines, maintains a consistently growing (upward-sloping) population structure. While many ASEAN countries are currently experiencing a slowdown or stabilization in population growth, these three countries are still steadily expanding their populations. This growing population is expected to drive demand in the Edtech market.
2-2. High Economic Growth
Vietnam is currently exhibiting a remarkable economic growth rate in the range of 7% among ASEAN countries. The neighboring countries are achieving economic growth rates around 5% or so.
2-3. Smartphone and Internet Accessibility
Vietnam has surpassed approximately 61 million smartphone users, ranking in the global top 10. Furthermore, the country is currently experiencing a continuous increase in smartphone users, with this trend still on the rise.
The widespread availability of the internet also serves as a backdrop for the growth of the Edtech market. As of 2023, Vietnam’s internet penetration rate is approximately 79.1%, ranking it fourth in Southeast Asia after Singapore, Malaysia, and Thailand, and placing it in the global top 40.
2-4. Aggressive Investment in Vietnamese Edtech
Aggressive investment can also act as a significant growth driver for the Vietnamese Edtech market. In 2021, among the total of 76 investment deals amounting to approximately $1.28 billion in ASEAN’s Edtech companies, 14.1% or $180 million (11 deals) were invested in Vietnam. Among these investments, 63.6% were directed towards Edtech startups in the Seed stage.
Hebronstar Strategy Consultants
Hyunil Seo / Senior Consultant
