Annual Startup Competition Showcases Vietnam’s Green Tech Potential

Introduction of the Net Zero Challenge

The annual startup competition, the Net Zero Challenge, co-organized with the Temasek Foundation, has been a pivotal platform in promoting climate-tech innovation in Vietnam. Over the past three years, this competition has attracted more than 1,600 applications from around 60 countries, underscoring a robust interest in sustainable solutions worldwide.

Touchstone Partners’ New Fund

Touchstone Partners, a venture capital firm based in Ho Chi Minh City, recently announced a new US$10 million fund dedicated to accelerating Vietnam’s green transition. This initiative reflects the firm’s confidence in a high-impact, high-return investment thesis focused on climate-tech startups. The Vietnamese government’s supportive policy environment significantly enhances the viability of such investments, positioning Vietnam as a promising hub for green technologies.

Strategic Intentions Behind the Competition

The Net Zero Challenge serves as a strategic platform for investment opportunities while attracting global startups to pilot their solutions in Vietnam. “Vietnam is one of the world’s leading agricultural producers, which also means it generates significant agricultural waste,” says Ngo Thuy Ngoc Tu, general partner at Touchstone Partners. This dynamic creates a fertile ground for climate adaptation and agri-tech innovations.

Record Participation and Competition

This year’s edition of the Net Zero Challenge has seen the largest participation to date. With a record 700 submissions, it highlights the growing international influence of the competition, supported by a strong network of global partners and successful pilot projects from past winners. The heightened interest, especially from startups in Southeast Asia and larger markets like China and India, emphasizes the urgent need for robust climate technologies in regions facing similar environmental challenges.

The Grand Finale: Climate Innovations Recognized

The culmination of the Net Zero Challenge took place in a grand finale event in Ho Chi Minh City. There, 20 billion dong (approximately S$991,730) in grants and investment prizes were awarded to three standout projects that focus on renewable energy, sustainable agriculture, and circular economy solutions. Among the winners was Vietnam Food (VNF), which has developed RetriV, a chitosan-based solution that extracts valuable nutrients from food wastewater. This innovative approach positions VNF to tap into a unique market opportunity in the upcycling of shrimp byproducts.

A Look at Winning Innovations

VNF’s impressive journey from a shrimp co-products processor to a leader in chitosan production illustrates the potential of local startups in making substantial environmental impacts. Another notable winner, Shoes Agtech, focuses on developing ultralight farming robots, showcasing the breadth of innovation taking place within the competition.

Meanwhile, international participants like Alcarbo Technologies from Hong Kong have also made a mark by using algae photobioreactors for carbon capture, further illustrating the global significance of the challenge.

Building Partnerships for a Sustainable Future

The Net Zero Challenge continues to act as a platform for mentorship and local partnerships. It seeks to fill a critical gap in early-stage climate funding by offering startups market access, training, and connections essential for scaling their technologies. Past winners, such as Canada’s CO2L Tech and Australia’s Bygen, have paved the way, demonstrating that innovative climate solutions can thrive when given the right support.

Temasek Foundation’s Role

Heng Li Lang, head of climate and liveability at Temasek Foundation, emphasizes the importance of this competition, stating it serves as an opportunity to spotlight the next wave of innovative environmental solutions. Temasek Foundation, as a philanthropic entity, complements Vietnam’s climate initiatives by fostering partnerships among stakeholders, including governments, businesses, and investors.

Vietnam’s Growing Climate-Tech Landscape

Vietnam’s favorable policy environment further enhances these investment opportunities. With a commitment to achieving carbon neutrality by 2050 and plans for renewables to constitute 25-30% of energy supply by 2045, the government is setting ambitious yet attainable goals. The establishment of the Green Transition Fund allows Touchstone Partners to provide substantial financial support to emerging climate-tech ventures.

Financial Impact and Future Outlook

Touchstone’s new funding vehicle is structured to ensure blended financing models, reducing risks for investors while nurturing startups with non-dilutive grants. Over the coming years, the firm aims to channel seed capital ranging from US$200,000 to US$1 million to various innovative projects. This commitment to nurturing Vietnam’s climate-tech ecosystem is exemplified by their investments in startups like electric-bike manufacturer Selex Motors and rooftop solar provider Stride.

Though the broader climate-tech investment landscape faced fluctuations, with a decline in deal values recently, the competition remains a beacon of hope for sustainable innovation in the region. As climate-tech accounts for a growing share of total deals in Southeast Asia, the future looks promising for startups dedicated to addressing pressing environmental challenges.

Thus, the Net Zero Challenge and Touchstone Partners collectively symbolize the potential for technology, investment, and innovation to propel Vietnam—and Southeast Asia—toward a sustainable, climate-resilient future.