Vietnam’s climate‑tech startups attract investor interest, yet in 2025 no deal between $350,000 and $1 million was recorded. This “missing middle” leaves many firms unable to move from grant money to commercial financing.

According to the Vietnam Climate Tech Ecosystem Report 2026 series, total sector funding fell 52 % from $104.2 million in 2024 to $49.86 million in 2025. The number of deals also dropped from 60 to 33. The decline is partly explained by the absence of any $350k‑$1 million investments in 2025, compared with four such deals in 2024.

The researchers identified three main obstacles that create the missing middle. First, there are few financial instruments designed for the $350,000‑$1 million range. Second, not enough businesses are ready to use such financing, and third, coordination between grant providers, investment funds and banks is weak.

Bank lending in Vietnam still depends heavily on collateral rather than business performance. As a result, none of the 22 surveyed startups secured a green loan from a domestic bank. This collateral focus makes it hard for early‑stage climate‑tech firms to obtain bank financing.

Women‑founded enterprises represent 33 % of climate‑tech firms but received only 1.7 % of total investment capital. The report notes that many women do not hold land titles, which limits their ability to meet collateral requirements, and they also tend to operate in sectors with smaller average deal sizes. Additionally, 73 % of surveyed startups said a shortage of skilled technical workers is a top workforce need.

The missing middle persists because suitable financing tools, ready‑stage companies and better coordination are lacking, while banks’ collateral rules and gender‑related barriers further restrict access. Understanding these obstacles helps founders and investors find ways to bridge the gap from grant to commercial capital.