Vietnam’s Thriving Technology Startup Ecosystem
Vietnam’s technology startup ecosystem is on an impressive ascent, boasting over 5,500 startups, with more than 4,100 still operational. Recently, a report by Tracxn revealed that the funding inflow has reached an astounding $3.2 billion. This milestone illustrates Vietnam’s transformation into one of the most dynamic startup hubs in Southeast Asia.
The Emergence of Unicorns
The growth of the Vietnamese startup ecosystem is further emphasized by the rise of six unicorns: Tiki, MoMo, Sky Mavis, VNPAY, VNLIFE, and VNG. These companies have not only achieved billion-dollar valuations but have also played pivotal roles in shaping the country’s digital economy. For instance, MoMo has become the leading digital wallet, while Sky Mavis garnered international recognition through its blockchain-based gaming success, Axie Infinity.
Rapid Growth and Funding Trends
The past decade has seen a remarkable increase in startup activity, with over 60% of all startups established between 2015 and 2025. Significantly, nearly $2.3 billion—around 75% of all-time funding—has been secured within just the last five years. The year 2021 marked a watershed moment, with Vietnam attracting $1.2 billion in startup funding, led by landmark rounds from notable players like Tiki, VNLIFE, and MoMo.
Concentration of Startups in Major Cities
Hanoi and Ho Chi Minh City stand as the heart of Vietnam’s startup scene, with 2,127 and 2,098 startups, respectively. These cities dominate the landscape, while emerging hubs like Da Nang and Can Tho are witnessing increased entrepreneurial activity. Ho Chi Minh City, in particular, stands out as the top-funded city, having attracted $1.8 billion, largely due to the success of companies like Tiki and MoMo.
The Role of Venture Capital
Venture capital has been crucial in amplifying this funding momentum, contributing over 90% of year-on-year funding from 2020 to the present. More than 290 venture firms have participated in investing in Vietnamese startups, with CyberAgent Capital leading the charge through 24 rounds of funding. Notable funding events include nine mega funding rounds exceeding $100 million, showcasing strong investor confidence in the ecosystem.
A Diverse Portfolio of Startups
Beyond the unicorns, numerous high-growth companies are making significant strides. Startups like Sendo, OnPoint, and Thuocsi have collectively raised over $400 million, expanding in sectors such as e-commerce and health tech. This reflects not only market maturity but also investor willingness to back ventures beyond the headline-making companies.
Successful Exits and Market Maturity
The startup landscape in Vietnam has matured significantly, with 76 exits recorded to date, including 52 acquisitions and 24 initial public offerings (IPOs). Landmark deals like Central Group’s $1.05 billion acquisition of Big C & Nguyen Kim Group highlight the growing interest from global players in Vietnam’s digital and consumer markets. The IPOs from BeLive Technology and TCBS signal growing investor appetite for the next wave of scale-ups, particularly in sectors like fintech.
Government Support and Ecosystem Initiatives
The foundation for Vietnam’s startup growth has been bolstered by a series of supportive government policies and ecosystem initiatives. Programs such as Vietnam Silicon Valley and the National Technology Innovation Fund, alongside the landmark 2017 Law on Support for Small and Medium Enterprises, have provided vital frameworks and incentives for startups. This legislative backing legitimizes startups as legal entities and encourages their development.
A Bright Future Ahead
As Vietnam’s startup ecosystem transitions from a phase of rapid entrepreneurial creation to one of sustained scaling, the trajectory reflects both the vast opportunities and the depth of innovation underway in the country. With a robust base of startups, substantial late-stage funding, and a growing number of successful exits, Vietnam is well-positioned as a rising force in Southeast Asia’s technology landscape, attracting local and global investor attention.