Strengthening the innovation startup ecosystem in Vietnam

Hoang Minh, deputy Minister of Science and Technology

Vietnam is also recognised as one of eight middle-income countries that have improved in these rankings the most since 2013. It holds the record for outperforming its development level for 14 consecutive years, demonstrating efficiency in converting input resources into innovation outputs.

This year, attracting venture capital in Vietnam has grown strongly again, with the number of venture capital deals increasing by 27 places, ranking 50th. The number of deals receiving venture capital increased by 10 places to 44th, reflecting the improved investment environment and quality of startups.

The Startup Blink global ecosystem ranking in 2024 also shows that Vietnam’s cities, specifically Hanoi, Ho Chi Minh City, and Danang, have improved in this area and continue to grow, ranking Vietnam 56th in the world, up two places compared to 2023.

The ultimate goal of developing an innovative startup ecosystem is to create a favourable environment for formation and development, creating outstanding value for the economy and society. Therefore, the support system needs to have a legal corridor, policies, and strong supporting entities, specifically related support centres, as the core to optimise resources from the private sector and from abroad.

Since 2021, rules have been set in place to guide the formation and development of innovation startup centres in localities, ministries, agencies, and organisations, emphasising that the establishment of such centres must be based on internal resources and practical needs of each locality. There exists orientation to develop them to become core for the local ecosystem, and a focal point for connecting and exploiting resources, as well as linking regions and countries.

Currently, many units supporting innovation startups have been established nationwide, from the private sector, the public sector, and international organisations under many diverse models. Typically, about 20 cities and provinces have established such support centres. Nearly 100 incubators and business promotion organisations are in operation, and many international innovative startup centres have opened branches or other spaces in Vietnam.

The Ministry of Science and Technology finds that in addition to legal corridors, development policies, and national links among startup support centres, it is also necessary to attract international resources to link and coordinate in developing and implementing startup support initiatives. This is needed to take advantage of their experiences as well as expertise from abroad to promote open innovation, and thus solving new economic, social, and environmental challenges.

We expect Techfest to be an opportunity to comprehensively discuss practical challenges in local ecosystems in recent times, thereby proposing orientations and solutions for developing a system of innovative startup support centres. This is closely linked to maximising the specific strengths of localities, linking with national and international resources in line with the local socioeconomic development strategy.

The event does not only stop at domestic exchanges, but also expands the vision to the region, through learning from the experiences of countries such as South Korea, the US, Australia, and Thailand on how to overcome barriers in creative startups.

We aim to build a synchronous and effective system of these support centres, in which the national support centre plays the main role of connecting, managing, and coordinating resources in accordance with local strengths, while local centres undertake the task of directly supporting startups, ensuring quality and effectiveness.

With a specific, clear, and transparent legal corridor, and increased international support, we hope to bring the overall strength of the system of organisations supporting innovative startups nationwide to develop strongly on a national scale, while globally integrating and cementing its position in the international arena.

TECHFEST 2024 to focus on Vietnam's startup ecosystem The National Innovation and Startup Festival (TECHFEST) 2024 is poised to be a pivotal event, promoting Vietnam's innovative startup movement.

TECHFEST 2024 hears innovative startup ecosystem solutions Solutions that combine local strengths with domestic and international resources are being pursued to develop local startup support centre systems nationwide, according to speakers at a policy forum at TECHFEST 2024, organised by the Ministry of Science and Technology (MoST) in Haiphong on November 26.