India and Vietnam Attract Global Capital, Emerge as Strong Investment Hubs in Asia

by Archish Mittal, MBA ’25, and Dr Philipp Rösler

India has emerged as a prime prospect for global investors. With the largest population in the world, a rapidly growing middle class, and a politically stable environment, India continues to strengthen its position as a major target for investors from across the world. Even if there was a momentary downturn in the startup ecosystem, this rich investment landscape had already fostered over 111 unicorns by the time January 2024 rolled around. The Indian financial markets are thriving and robust, with over $5.9 billion raised from initial public offerings (IPOs) in 2023. According to forecasts made by S&P Global, India’s nominal GDP growth is projected to reach $7.3 trillion by the year 2030, which places it in a position to become the third-largest economy in the world in the future.

Vietnam, on the other hand, has quickly risen to the top of the global investment landscape, which is a testament to the country’s developing market and the strategic initiatives adopted by the government. Twenty-five years ago, Vietnam was largely overlooked in the circles of venture capital and private equity. However, in the past five years, Vietnam has witnessed an explosive surge in venture capital funding, which has increased from $48 million in 2017 to $1.15 billion in 2023. Vietnam’s growing potential as an investment hub is highlighted by this expansion, which has been spurred by the COVID pandemic, trade concerns between the United States and China, and alterations in geopolitical conditions.

Creating a financial ecosystem attractive to foreign investors

The Vietnamese government, led by Prime Minister Pham Minh Chinh, demonstrated its dedication to enhancing Vietnam’s financial industry at a dinner held during the World Economic Forum at the HCMC Finance Centre in Davos on January 17, 2024. His Excellency Nguyen Chi Dung, Minister of Planning and Investment, and Phan Van Mai, Chairman of the People’s Committee, were also present at this event designed to bring attention to opportunities that exist in Vietnam’s financial sector. Clearly, the administration is actively working towards the goal of establishing a comprehensive legislative framework that would enable Ho Chi Minh City to become a globally competitive financial center. Specifically, this entails establishing a comprehensive financial ecosystem that encompasses fintech, digital banking, and green finance, with the objective of attracting a greater number of foreign investments by implementing conducive laws and special economic zones.

The presence of four unicorns and other startups with valuations of more than $100 million demonstrates that Vietnam’s expanding market is at the forefront of innovation. Recent investments made by leading private equity organizations such as Warburg Pincus and KKR provide more evidence that Vietnam’s market potential is substantial.  The fact that No Va Land Investment Group received $250 million in funding from a consortium led by Warburg Pincus and that KKR has a large position in Medical Saigon Group are two examples that demonstrate the appeal of the country to investors from across the world.

India and Vietnam each have compelling tales to tell about investment opportunities, and each country has its own set of advantages. Vietnam’s dynamic growth, which is supported by smart government measures, puts it at an attractive frontier for investment in Asia. India’s market is diversified and mature, and it offers a wide range of opportunities across a variety of industries. Without a doubt, through the development of favorable investment climates and robust infrastructure, these countries will continue to strengthen their position as leading investment hubs as they continue to attract global money.

About the Authors

Archish Mittal, MBA ’25, is a student at Cornell University’s Samuel Curtis Johnson Graduate School of Management in the SC Johnson College of Business and a Cornell Emerging Markets Institute Fellow. He has experience working on public-private partnerships at McLarty Associates, International Solar Alliance, and the Massachusetts Institute of Technology Jameel World Education Lab. Mittal serves on the board of advisors of LEO1, a fast-growing fintech company in India focused on education. He is a member of the Heidelberg International Club, a Next-Gen Scholar at the Center for High Impact Philanthropy at the University of Pennsylvania, a councillor at the Atlantic Council, and a member of the Young Leaders Circle at the Milken Institute (2022-2023).  Mittal holds a BSc (Hons) in investment and financial risk management from City University, London, and an MA in law and diplomacy from the Fletcher School at Tufts University. He writes regularly for Al Arabiya, Fair Observer, and other global publications.

Dr. Philipp Rösler is a physician who started his career in the German Armed Forces, joining politics in 2003. He served as the chairman of the Free Democratic Party in the German state of Lower Saxony. In 2009, he joined the federal government of Germany as the minister of health. In 2011, Rösler  was elected chairman of the Free Democratic Party in Germany and he became vice chancellor of the Federal Republic of Germany, serving 2011-13. Rösler left politics 2013 and joined the managing board of the World Economic Forum in Geneva, serving for four years. He holds management consulting mandates and supervisory board memberships in several known Swiss and international companies, where he focuses on cross-border investments, market access, and market development for Asia and Europe. In 2020, Rösler founded the consulting firm Consessor AG. He recently joined the board of CVVC, a global venture capital firm for blockchain technology based in Zug, Switzerland.