Innovative startup ecosystem witnesses strong development

The picture of Vietnam’s innovation ecosystem in 2024 was so bright with around 4,000 innovative startups, including two unicorns and 11 companies valued at over US$100 million. The country has more than 1,400 startup support organizations, 202 co-working spaces, 208 investment funds, 35 business promotion organizations, 79 incubators, and about 170 universities and colleges engaging in innovative startup activities. More than 20 innovation centers have been established nationwide. In 2023, Vietnam attracted US$529 million of venture capital for innovative startups, demonstrating its growth potential and attractiveness to international investors.

Many innovative startup products and services are displayed and introduced at the National Innovative Entrepreneurship Day (TechFest Vietnam 2024) - photo: Quynh Nga

According to the Ministry of Science and Technology (MoST), over the past 10 years, Vietnam has basically built an institutional background, established support organizations and networks, promoted innovation culture, attracted the participation of innovation enterprises, small and medium enterprises, universities, research institutes, investors, etc. and has achieved encouraging results.

Vietnamese startups are not only focusing on the domestic market but also expanding globally, with many companies valued at hundreds of millions to billions of US dollars.

According to the directions of the Government, the MoST is assigned to boost innovative startup activities. Over the past years, the ministry has coordinated with a number of ministries, sectors, localities, and socio-political organizations to develop the Vietnamese startup ecosystem.

For example, the Ministry of Planning and Investment has connected more than 200 investment funds, developed a network of 2,000 experts and intellectuals in 20 countries and territories; and more than 60 domestic innovation centers. Meanwhile, the Ministry of Education and Training and the Ministry of Labor, Invalids and Social Affairs have launched Project 1665 “Supporting students to start a business until 2025,” and coordinated with the Vietnam Women’s Union to implement Project 939 “Supporting women in business start-up.” The participation of large corporations, such as Viettel, VinGroup, FPT, Qualcomm, Shinhan, Lotte... also contributed significantly to building a national startup ecosystem.

Minister of Science and Technology Huynh Thanh Dat affirmed that over the past decade, Vietnam’s innovative startup ecosystem has developed strongly with the emergence of pioneering enterprises applying new technologies, new business models, and ready to compete in the global market.

“The intelligence and creativity of the Vietnamese people have been gradually affirmed in the world arena,” Minister Dat said.

From the very first steps, the Vietnamese innovative startup ecosystem has risen to become a bright spot in the world with a significant increase in the quantity and quality of innovative startups. They plays a central role in forming a strong national innovative startup ecosystem, constantly connecting with international resources, thereby raising Vietnam’s position in the global value chain.