Lack of standardized data makes it difficult for Vietnamese startups to become unicorns.

The "thirst" for standardized data.

At the workshop "Applying Artificial Intelligence in Building a National Startup Database" held on December 12th in Hanoi, Dr. Pham Hong Quat – Director of the Department of Startups and Technology Enterprises ( Ministry of Science and Technology ) – frankly acknowledged the current state of data sources, which are highly fragmented. He emphasized that the criteria of "accuracy, completeness, cleanliness, consistency, and shared use" are urgent requirements that have not been fully met.

"The reality is that our current data system is not yet 'lively,' clean, accurate, unified, or readily available for shared use. Although we have met some criteria, overall, data remains fragmented and poses many challenges for management," Dr. Pham Hong Quat stated.

This shortage leads to big questions that remain unanswered: Who are good mentors? Who are reputable investors? Which projects deserve funding and how should they be valued?

Dr. Pham Hong Quat – Director of the Department of Startups and Technology Enterprises (Ministry of Science and Technology).

Sharing the same view, Dr. Vu Viet Anh – Chairman of Thanh Cong Academy Education and Communication Joint Stock Company, and Head of the Techfest Vietnam Marketing Technology Community – pointed out a paradox: in the past 10 years, despite nearly 4,000 startups, Vietnam has only had 4 unicorns. According to him, the main bottleneck lies in data.

"Startups lack standardized market data, leading to situations where they have good ideas and products but cannot commercialize them. A lack of symmetrical data on technology prevents startups from understanding what's developing in the world , resulting in them facing competition from global platforms even before they launch," Viet Anh analyzed.

New competitive tools

Faced with these challenges, experts agree that artificial intelligence (AI) is the key to solving the problem. However, AI cannot function without quality input data.

Mr. Vu Ngoc Quyet, Chairman of LOCAAI, shared the "pain points" faced by startups when using outdated data or data gathered from Google that is no longer relevant to reality. Therefore, shifting towards using real-time data is a necessary trend.

Numerous experts and speakers from both Vietnam and abroad participated in the conference.

"Data is a national asset. However, the tools to exploit it are the real competitive weapon, or what is known as 'unfair competitive advantage'. With the support of the community and the Ministry of Science and Technology, I hope Local AI will soon launch this platform, equipping the Vietnamese startup community with a sharp weapon in the global business arena," emphasized Mr. Vu Ngoc Quyet, M.Sc.

To realize this, Dr. Vu Viet Anh proposed five key strategies, including: building a national startup data platform; forming a global open AI network; promoting venture capital funds and public-private partnerships; innovating education to nurture AI talent; and building a national sandbox mechanism.

"The message we want to convey today is: The future is in the hands of those who dare to change. AI doesn't compete or take away opportunities; rather, it's a powerful tool to help us break through and bring about significant change," shared Dr. Vu Viet Anh.

From an international perspective, Mr. Ojasvi Babber – CEO of Amity Technology Incubator – shared experiences from the populous nation of India. He suggested that Vietnam needs to shift from simply possessing data to aggregating and analyzing it to increase transparency in capital flows, thereby attracting the trust of global investors, similar to India's DPIIT model.

"Using AI to analyze big data is key to helping governments make evidence-based decisions and build accurate risk prediction models," Ojasvi Babber recommended.

Dr. Pham Hong Quat expressed his hope that Vietnam will play a pioneering role in the region. The data challenge is not unique to Vietnam but is also a common issue for Malaysia, Indonesia, Thailand, and the Philippines.

"We expect that Vietnam's initiatives in the coming year can contribute to the establishment of a common database for ASEAN – a market with nearly 700 million people. With a good data source and AI applications for analysis for different target groups, thousands of startups will have the opportunity to receive investment and connect with businesses," Director Pham Hong Quat expressed.

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