Vietnam’s Thriving Startup Ecosystem: A Beacon of Innovation

Vietnam has increasingly gained recognition as one of the most dynamic emerging countries in the fields of innovation and startups. By the end of 2024, data from the Ministry of Science and Technology (MoST) showcased a burgeoning startup landscape comprising over 4,000 startups. Notably, this includes two unicorns and eleven ventures valued above $100 million, marking a significant milestone for the nation’s entrepreneurial spirit.

An Expansive Ecosystem

The Vietnamese startup ecosystem is not just about the number of startups; it is also a rich tapestry of support structures. More than 1,400 organizations are dedicated to fostering startups, alongside 202 co-working spaces designed to nurture collaboration. Additionally, 208 venture capital funds, 35 business accelerators, and 79 incubators create a favorable environment for innovation. Approximately 170 universities and colleges actively engage in startup activities, indicating a well-rounded commitment to entrepreneurship. Furthermore, over 20 innovation and startup centers have been established nationwide, underscoring the government and communities’ drive to encourage creative ventures.

Rising Global Recognition

According to the Global Startup Ecosystem Index 2024 by StartupBlink, Vietnam has made impressive strides, climbing from 58th to 56th position globally in just one year. This upward trajectory reflects the country’s unwavering commitment to cultivating a vibrant and investor-friendly startup environment. With strategic efforts designed to attract global investors, Vietnam is increasingly establishing itself as an emerging innovation hub.

The National Innovation Center (NIC) also reported that in 2024, 141 investment deals in the startup sector were recorded, totaling around $2.3 billion in disbursed capital. Notably, most investments originated from funds based in Singapore and Japan, with a few contributions from domestic sources, highlighting international interest in Vietnam’s growing potential.

Notable Developments in 2025

As Vietnam’s startup ecosystem heads into 2025, positive developments continue to emerge. For instance, in February, agritech startup Techcoop successfully raised $70 million in a Series A round, led by TNB Aura from Singapore and Ascend Vietnam Ventures. This significant fund-raising is a testament to the sector’s robustness.

Shortly after in March, AI startup Filum AI secured $1 million from prominent regional investors, such as Nextrans and VinVentures. The CEO of Filum AI, Mr. Tran Van Vien, expressed hope that this investment would enhance collaboration opportunities in both funding and technology, positioning Vietnam as a leading player in the regional AI sector.

While these capital raises may not be colossal in terms of amounts, they signal resilience amid global economic fluctuations, particularly those influenced by U.S. tariff policies.

Building a Stronger Investment Community

To sustain growth momentum, the NIC and the Vietnam Private Capital Association (VPCA) signed several Memorandums of Understanding (MoUs) at the Vietnam Innovation and Private Capital Investment Forum 2025 (VIPC Summit). These agreements with leading Asian investment bodies reflect a proactive approach to fostering a robust investment landscape. With combined assets under management exceeding $5 trillion, these partnerships hold great potential for invigorating Vietnam’s startup ecosystem.

Fostering a Culture of Innovation

Vietnam’s growing reputation is not only attributed to the number of startups but the increasingly dynamic environment that supports technological advancements. As emphasized by Ms. Ngo Thuy Ngoc Tu, Co-founder of Touchstone Partners, the emergence of modern laboratories and a solid base of intellectual property (IP) highlight Vietnam’s innovation capabilities. This illustrates the country’s readiness to develop breakthrough technologies essential to a thriving startup community.

Challenges Ahead

Despite the promise shown by these developments, 2025 poses challenges driven by global uncertainties, such as geopolitical tensions and fluctuating trade climates. Experts like Dr. Nguyen Duc Kien, former Head of the Prime Minister’s Economic Advisory Group, caution that one major bottleneck remains: access to funding for later-stage startups. While early-stage capital is relatively accessible, growing startups often struggle to secure the necessary funds for expansion, often requiring investments upwards of $50 million.

Consequently, many promising startups find themselves in a precarious position, forced to either sell or risk stagnation due to financial constraints. Dr. Kien advocates for better funding avenues and an improved legal framework to provide a more attractive investment landscape for innovative startups.

The Role of Technology Transfer

Addressing these challenges is critical, and Ms. Tu emphasizes that facilitating technology transfer and commercializing IP should be a strategic priority for Vietnam. Numerous promising ideas remain confined to labs due to insufficient mechanisms for connecting them with businesses and investors. Enhancing these connections is vital for increasing the value of innovations and positioning Vietnam effectively in the global tech landscape.

Government Support for Startups

In response to these challenges, the Vietnamese government is committed to developing tech enterprises and innovation-driven startups as a cornerstone of its digital transformation agenda. By 2025, ministries aim to establish flexible legal frameworks for capital mobilization while also devising long-term support programs for ecosystem growth.

At the VIPC Summit 2025, Deputy Prime Minister Nguyen Chi Dung reiterated the importance of fostering an environment conducive to experimentation and commercialization. His call to action for investment funds highlights the need for swift capital deployment to seize the potential unleashed by the ongoing digital transformation.

Moreover, the government envisions a collaborative effort among ministries, research institutes, universities, and innovation centers to create a platform where businesses can actively participate in shaping the future of Vietnam’s innovation landscape.

Through these concerted efforts, Vietnam stands poised not just to keep pace with global trends but to emerge as a significant player in the innovation space.