During the peak of the epidemic, most schools and educational institutions had to close, causing online learning to explode. This means the Covid-19 pandemic was the driving force behind the rapid development of the education technology (EdTech) market in the world in general and Vietnam in particular. So far, EdTech has attracted foreign capital more strongly than ever with investments worth millions of USD.
According to the research firm P&S Intelligence, the global education technology market size is expected to reach $998.4 billion by 2030 with a compound growth rate of 17.3%. The strong growth of EdTech solutions is thanks to the development of AI (artificial intelligence) and IoT (Internet of Things) technologies. At the same time, another driver of the market also comes from the increasing use of the Internet and smart devices, boosting the education technology industry. In some developing countries such as China and India, the government has also invested heavily in educational technology.
As for the Vietnamese market, according to a report by Ken Research, the scale could reach $3 billion by 2023, with a compound annual growth rate of about 20.2% in the period of 2019 - 2023. The rise of EdTech in Vietnam is a sign that the country's workforce will be better equipped for a digitalized and globalized market. Many large corporations and startups have been making efforts to gain a piece of this "cake".
Vietnam is one of the most dynamic markets in Asia
Investment inflows into Vietnam's EdTech market in recent years have been very strong, recording a surge in 2021 with about $158 million for 11 deals.
The most notable is the investment of $100 million in Equest Group from the investment fund KKR (USA); $15 million in Elsa Speak from Google's investment funds and Clevai; and $3 million into MindX from Southeast Asian Wavemaker Partners venture capital fund.
Compared to 2020, when there were only 3 deals with a total investment value of about $20 million, the investment amount in the EdTech field in 2021 was really impressive.
Assessing the potential of Vietnam, at a recent event, Ms. Alicia Cheong - Co-Founder and COO of Geniebook (one of Singapore's leading EdTechs) - said that before Geniebook entered the Vietnamese market, this company had conducted an exploratory digital communication strategy. The results were quite surprising when parents in Vietnam are very open to online learning.
Since the beginning of 2019, Geniebook has achieved impressive revenue growth of more than 2,000% with the number of users in Southeast Asia continuously increasing, reaching more than 220,000 people. In Vietnam alone, Geniebook's revenue has tripled compared to 2020.
Of course, the potential market will come with many competitors. Moreover, Vietnamese parents are paying a lot of attention to their children's results and future. Therefore, EdTech businesses need to be aware of this to achieve the best results.