Vietnam’s Flourishing Startup Scene

Despite global challenges in funding, Vietnam’s startup environment remains vibrant, drawing significant investment from both local and international entities. This robust performance showcases the increasing attractiveness of Vietnamese startups to global investors.

In the wake of the Covid-19 pandemic, the international venture capital sector has faced difficulties, with many startups around the world struggling to maintain their operations. Yet, Vietnam’s situation is markedly different.

Pham Hong Quat, Director of the Market Development and Science-Technology Enterprise Department at the Ministry of Science and Technology, reports that venture capital in Vietnam is thriving. In just the first three quarters of 2024, Vietnamese startups secured 38 deals worth $372 million, marking a notable contrast to other ASEAN nations that have experienced stagnation.

Looking ahead, Quat anticipates that total investments in Vietnamese startups for 2024 could reach near the previous year’s $529 million, indicating sustained investor confidence.

Key Features of Vietnam’s Startup Ecosystem

Vietnam boasts a dynamic startup community, which includes:

• Over 4,000 innovative startups, with two classified as unicorns and 11 valued above $100 million.
• 1,400+ support organizations and 202 coworking spaces available.
• 20 innovation hubs, both national and local, catalyzing entrepreneurial initiatives.
• 208 investment funds, 79 incubators, and 35 accelerators playing pivotal roles.
• Collaborations with approximately 170 universities and colleges promoting entrepreneurial education.

In terms of venture capital impact, Vietnam improved its standing on the Global Innovation Index by the World Intellectual Property Organization, jumping from 77th place in 2022 to 50th in 2024. Furthermore, its ranking for venture capital funding received has advanced from 54th in 2021 to 44th in 2024.

Evolving Ecosystem Dynamics

The Ministry of Science and Technology believes Vietnam’s startup ecosystem is evolving from a foundational growth phase into a more sophisticated focus on scalability and depth. This development demands enhanced collaboration among stakeholders:

• Government: Formulate targeted policies to promote innovation that align with the country’s specific requirements.
• Corporations: Actively invest in and utilize innovative solutions from startups, presenting challenges that startups can tackle.

Vietnam’s growing presence in the venture capital and innovation sectors underscores its emerging role as a key entrepreneurial hub in the region. With ongoing efforts to improve connectivity, reform policies, and attract investments, the country is well-positioned for continued advancement.