The Startup Ecosystem of Vietnam

The Vietnamese government is actively promoting innovation in the country through initiatives such as the Vietnam National Innovation Center and the Department of Science and Technology (DOST). Various programs and funds like the SpeedUP fund, Startupcity.vn, the Vietnam – Finland Innovation Partnership Program, and the National Technology Innovation Fund (NATIF) are aimed at fostering growth in top Vietnamese ecosystems. International organizations like USAID and CARE are also contributing to Vietnam’s startup scene. The Swiss Entrepreneurship Programme in Vietnam is noteworthy for its efforts to unite ecosystem stakeholders, support startups, and encourage female entrepreneurship.

Vietnam’s venture capital investments are on the rise, with the government offering tax incentives to attract foreign investors and companies. Key investors like Singaporean VC, Antler, and 500 Startups are showing interest, and VC funding is expected to reach US$ 5 billion by 2023-2025.

The approval of National Program 844 in 2016 and the Law on Supporting Small and Medium-Sized Enterprises in 2018 demonstrate Vietnam’s commitment to supporting startups. Despite the growth in the number of startups and revenue, challenges persist such as a lack of qualified workers, scaling startups, and slow regulatory reforms. It is crucial for the government to invest in training and education to build a skilled workforce and continue regulatory reforms to create a favorable business environment for investors and developers. Vietnam’s open society and lack of Internet restrictions will further attract digital businesses and support the growth of its startup ecosystems.

Investors are increasingly drawn to growing industries in Vietnam such as ecommerce, fintech, foodtech, enterprise solutions, and information technology services. With unicorns like MoMo and Sky Mavis, Vietnam is emerging as a powerhouse in Southeast Asia’s startup scene.