Amid a difficult global funding environment, Vietnam's startup ecosystem continues to thrive, attracting substantial investments from both domestic and international sources. This resilience highlights the growth potential and appeal of Vietnamese startups to global investors.

Resilient growth amidst global downturn

Following the Covid-19 pandemic, the global venture capital market has entered a challenging phase. Many international forums emphasize “resilience” as startups worldwide struggle to sustain operations.

However, Vietnam has bucked this trend.

According to Pham Hong Quat, Director of the Market Development and Science-Technology Enterprise Department (Ministry of Science and Technology), venture capital investment in Vietnam remains robust.

In the first nine months of 2024 alone, 38 deals totaling $372 million were secured by Vietnamese startups. This figure stands out compared to ASEAN neighbors, where many recorded negative or zero growth.

Quat expects total startup investments in Vietnam for 2024 to approach the 2023 figure of $529 million, signaling sustained interest from investors.

A maturing startup ecosystem

Vietnam now hosts a vibrant startup landscape:

4,000+ innovative startups, including two unicorns and 11 companies valued over $100 million.

1,400+ support organizations, 202 coworking spaces, and 20 national and local innovation hubs.

208 investment funds, 79 incubators, and 35 accelerators actively contributing to the ecosystem.

Partnerships with approximately 170 universities and colleges facilitating entrepreneurial education and activities.

Vietnam’s venture capital deal volume has significantly improved, climbing from 77th in 2022 to 50th in 2024, according to the Global Innovation Index by the World Intellectual Property Organization.

The metric for venture capital funding received has also risen, moving from 54th in 2021 to 44th in 2024.

Shifting to a deeper phase of innovation

The Ministry of Science and Technology asserts that Vietnam’s startup ecosystem has transitioned from its initial growth phase into a more advanced stage, focusing on scalability and depth.

This new phase requires stronger domestic and international collaboration and adjustments in the roles of ecosystem stakeholders:

Government: Develop tailored policies and mechanisms to support innovation, ensuring alignment with Vietnam’s unique needs.

Corporations: Act as both investors and end-users of innovative startup solutions by providing clear challenges and demands for startups to address.

Vietnam’s rising profile in venture capital and innovation is a testament to its growing role as a regional hub for entrepreneurship.

With continued efforts to enhance connectivity, foster policy reform, and encourage investment, the country is poised for further success.

Trong Dat