Betting on Vietnam's Digital Future - Jim Chuang

As Southeast Asia's digital economy gathers pace, Vietnam has emerged as one of the region's most closely watched investment destinations. Jim Chuang, Founder and Managing Partner of SAN Venture Capital and Senior Advisor to ML Alliance, believes the country is entering a generational shift driven by fintech and AI. In this interview, he shares the vision behind the Southeast Asia Nexus Venture Fund, why Vietnam has become its primary investment focus, what he looks for in founders, and why he believes the region's biggest opportunities are still ahead.

"Fintech is the vehicle delivering the service, but AI is the engine powering the unit economics."

1) Jim, could you tell us about the vision behind the Southeast Asia Nexus Venture Fund? What inspired you to establish the fund, and what gap in the market does it seek to address?

We are building a bridge between global capital and Southeast Asia's fastest-growing digital economy, with a particular focus on Vietnam. The vision is simple: identify local innovators who are leapfrogging legacy financial systems and give them the capital they need to scale across the region.

We saw a market where entry valuations are 30–40% lower than comparable companies in India or Indonesia, yet the underlying growth fundamentals are even stronger. The Fund is designed to capture this valuation arbitrage.

2) The Fund places a strong emphasis on Vietnam as its primary investment market. Why did you choose Vietnam, and what makes it such a compelling destination for venture capital today?

Beyond having one of the strongest GDP growth trajectories through 2030, Vietnam today reminds me of China's fintech boom between 2013 and 2018.

We're seeing the same powerful combination of widespread smartphone adoption and an underserved retail credit market. Historically, these conditions have created exceptional venture opportunities in fintech.

3) The Fund describes the current market as "a generational shift in fintech and AI". What trends are driving this shift, and why do you believe Vietnam is well positioned to benefit from it?

The shift is being driven by consumer demand for speed and convenience, alongside government efforts to encourage the adoption of AI-driven financial technologies.

QR-code payments recently recorded more than 150% year-on-year growth. When cashless transactions become the norm—from street vendors to enterprise supply chains—supported by AI, you have all the ingredients for a generational transformation.

4) The Fund focuses on both fintech and AI. How do you see the relationship between these two sectors, and how do you determine the balance of investment opportunities between them?

Think of it this way: fintech is the vehicle delivering the service, but AI is the engine powering the unit economics.

We invest in AI that solves specific financial bottlenecks. More importantly, we back companies that use AI to remove friction efficiently and profitably.

Around 60% of our capital is allocated to proven digital payment and QR-code ecosystems. The remaining investment targets high-upside AI companies that have the potential to transform underwriting and regulatory technology.

5) Raising and managing a venture fund comes with its own set of challenges. What have been some of the biggest hurdles in launching the Nexus Venture Fund, and how have you addressed them?

The biggest challenge has been changing outdated perceptions. Many global investors still view Vietnam as a frontier market.

We've had to educate limited partners using hard data, demonstrating that Vietnam is already a digitally mature economy growing at close to 20% annually.

Cross-border fund structuring is another challenge. By establishing the Fund as a Singapore Variable Capital Company (VCC) and leveraging Section 13U tax incentives, we've created a structure that maximises investor returns while minimising friction.

6) What qualities do you look for in startups before deciding to invest? Beyond a great idea or technology, what distinguishes founders and businesses that are likely to succeed?

Execution beats everything.

Beyond having a scalable business model, we look for founders with exceptional resilience. Building a successful startup in Southeast Asia demands operational grit and adaptability that you don't always find in more mature markets.

7) The Fund also welcomes General Partners (GPs), Venture Partners (VPs) and Limited Partners (LPs). What qualities and values do you look for in strategic partners who can help grow the Fund and its portfolio companies?

We look for partners who contribute far more than capital.

The ideal partner brings regional operating experience, M&A networks or strong institutional relationships that can actively accelerate our portfolio companies.

Our strategy is built around a three- to five-year exit horizon, primarily through regional M&A and secondary markets. We want partners who understand that pace, share our conviction and can see beyond short-term macroeconomic uncertainty to recognise the long-term fundamentals.

8) Looking ahead, what are your aspirations for the Southeast Asia Nexus Venture Fund over the next three to five years? How would you define success for the Fund beyond financial returns?

Beyond delivering our target 40% internal rate of return (IRR), success means helping to build a modern, resilient digital financial infrastructure that will support Vietnam's economy for decades to come.

9) From an investor's perspective, how do you assess Vietnam's economic fundamentals and investment climate today? What would you say to international investors who are considering Vietnam but remain cautious about the market?

The valuation arbitrage we see in Vietnam today will not last forever.

As Vietnam's fintech market moves towards an estimated US$60 billion by the early 2030s, entry valuations will inevitably rise. The opportunity to generate outsized returns exists today.

Caution is understandable, but the fundamentals are compelling. It's difficult to ignore a market of 100 million people where the digital economy already accounts for around 14% of GDP and continues to grow rapidly.

The consumer shift is permanent. The only question is whether you choose to be part of it.

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