Vietnam's innovative startup ecosystem enters a new phase

Vietnam's innovative startup ecosystem is entering a new acceleration phase, with the vision of becoming a country with the leading innovation capacity in the region by 2030 and in the top 30 in the world by 2045. According to the report of the Agency for Startups and Technology Enterprises, the recent picture of Vietnamese startups has recorded positive signals, while also facing major challenges, requiring breakthroughs in institutions and resources.

New policy paves the way for Vietnam's venture capital market

Currently, Vietnam has about 4,000 startups, mainly concentrated in Hanoi , Ho Chi Minh City and Da Nang; two technology unicorns MoMo and Sky Mavis; more than 200 venture capital funds and 200 startup support organizations in operation. In 2024 alone, the market recorded 112 investment deals with a total value of 529 million USD. These numbers show the strong vitality of the creative startup movement in Vietnam.

However, the overall picture also shows that the startup ecosystem still has limitations such as the domestic venture capital market is still thin, small in scale, lacks leading organizations and the risk of decline in the coming time. In particular, Vietnam lacks professional venture capital funds participated by the state or large enterprises, along with gaps in management and supervision mechanisms. This makes the startup ecosystem heavily dependent on foreign capital flows, while not making good use of domestic resources.

To address the biggest bottleneck of investment capital, the Government issued Decree 264/2025/ND-CP on the National Venture Capital Fund and Local Venture Capital Funds. This Decree, for the first time, fully regulates the legal status, organizational structure, powers, obligations, capital sources and operating mechanisms of venture capital funds, creating a legal corridor for state capital to participate in leading the market.

People experience and learn about startup products at the exhibition space of Techfest Vietnam 2024.

In parallel, Decree 268/2025/ND-CP provides detailed guidance on the Law on Science , Technology and Innovation on recognizing innovative start-up enterprises, start-up individuals, and start-up support centers. This is considered a fundamental step in perfecting the institution, contributing to creating a transparent and favorable environment for innovation models to develop.

In addition, a series of national-scale projects such as Project 844 supporting the innovative startup ecosystem, Project supporting women in startups, Project supporting students in startups, Youth startup support program or policies promoting the sharing economy model... are creating a multi-layered support network, from training, consulting, infrastructure, international connections to communication and market connection.

Innovative startups become a national strategy

Today, innovative startups are not simply economic activities, but are positioned as a long-term national strategy. This is a "people's cause", requiring the participation of the entire political system; at the same time, it is placed in the context of science and technology, innovation and digital transformation becoming the pillars of the country's development.

The orientation focuses on creating an environment where everyone can start a business, taking advantage of the power of digital technology and knowledge, regardless of age or field, from young people, women, workers to the elderly. Entrepreneurial spirit, innovation culture and tolerance for failure need to be nurtured as a social value.

The Party plays a leading role, the State guides, creates, focuses on building pioneering institutions, encourages experimentation, accepts risks along with effective governance. This is considered a decisive factor for the Vietnamese startup ecosystem to develop synchronously and sustainably.

The National Strategy on Innovative Startups sets ambitious goals, demonstrating the determination to make Vietnam a country with the leading innovation capacity in the region. By 2030, Vietnam strives to have 5 million business entities, form 1 million "one-person businesses", develop 10,000 startups and reach the Top 40 in the world in the Global Innovation Index (GII), Top 45 in the StartupBlink rankings. Total venture capital is expected to reach 3 billion USD, along with the spread of the entrepreneurial spirit throughout society, with a ratio of 1 startup for every 10 people, 1 business for every 25 people and 1 startup for every 5,000 people.

The long-term vision to 2045 determines that Vietnam will have a startup ecosystem that develops at the international level, is in the Top 30 GII, Top 30 StartupBlink, attracts 20 billion USD in venture capital and forms a generation of innovative entrepreneurs with global competitiveness, capable of leading new economic sectors and contributing to Vietnam's position in the era of knowledge economy.

These goals not only represent a long-term vision but also reflect the expectation that Vietnam will have a thriving startup ecosystem, making important contributions to improving productivity, growth quality and national position.

Research activities of technology startups.

Creating breakthroughs from institutions, capital markets and innovation culture

A notable highlight is the role of women in the startup ecosystem. Along with national projects, women are encouraged to participate actively in innovation, digital transformation and green economy. This is a new approach to expand social resources and promote gender equality in the field of technology startups, which is a field with a low proportion of women.

To realize the big goals, three groups of breakthrough solutions are considered the "lever" that determines the competitiveness of Vietnam's creative startup ecosystem in the new period.

First of all, institutions must take the lead, play a pioneering and creative role. A strong startup ecosystem cannot be formed without a clear, transparent and flexible legal framework that accepts experimentation. Completing the legal framework, especially policies that allow businesses to test new business models in a risk-controlled environment, will help promote creativity, reduce barriers and create confidence for entrepreneurs when implementing breakthrough ideas.

Second, developing the domestic venture capital market is considered a prerequisite. When the domestic capital market is still thin, the ecosystem will depend on foreign capital and be vulnerable to global fluctuations. Therefore, forming domestic venture capital funds, especially with the leadership of the State and large enterprises, will create a sustainable "capital axis" for startups. This is not only a story of capital injection but also of improving management capacity, connecting markets and providing comprehensive support for businesses in the early stages.

Finally, spreading the culture of innovation is considered a fundamental solution. From primary to university education, from mass media to the business community, the spirit of creativity, daring to think, daring to do, accepting risks and learning from failure needs to be widely fostered. When innovation becomes a common value of society, the startup movement will become a driving force for the development of the entire population.

The above three groups of solutions, if implemented synchronously and drastically, will create a strong driving force to help the Vietnamese creative startup ecosystem enter an acceleration phase, improve competitiveness and reach international standards.

Vietnam’s startup ecosystem is at a pivotal moment, where new policies, long-term national strategies and a complete institutional framework are gradually laying the foundation for a breakthrough development period. When resources are unleashed and the spirit of innovation is clearly oriented, Vietnam not only aims to rise but is also gradually positioning itself as a dynamic startup hub in the region. From that foundation, creative startups can become a new growth engine, helping the country expand its development space, enhance its position and contribute more and more to the world’s innovation flow.

Center for Science and Technology Communication

Source: https://mst.gov.vn/he-sinh-thai-khoi-nghiep-doi-moi-sang-tao-viet-nam-buoc-vao-giai-doan-moi-197251130113447991.htm