Vietnam’s Startup Ecosystem on the Rise
Vietnam’s startup ecosystem is experiencing a period of growth and positive change, according to the latest Startup Ecosystem Report 2024 by StartupBlink. After a slight setback in 2023, the country has climbed two spots to rank 56th globally in the Global Startup Index. This progress is particularly noteworthy in Southeast Asia, where Vietnam maintains its position as the 5th best country for startups.
Key Highlights:
- Regional Leader: Vietnam maintains its strong foothold as the 5th best country for startups in Southeast Asia.
- Global Recognition: The country boasts the 31st highest number of startups accepted into the prestigious Y Combinator program.
- Decentralized Growth: Vietnam’s startup ecosystem is not concentrated in a single city, with Ho Chi Minh City and Hanoi exhibiting comparable scores.
- Industry Leaders: Ho Chi Minh City stands out with a presence in the global top 100 cities across four key industries: Fintech, EdTech, E-commerce & Retail, and Transportation.
- Blockchain Hub: Both Ho Chi Minh City and Hanoi rank among the top 10 in Southeast Asia for blockchain startups, showcasing the country’s growing expertise in this cutting-edge technology.
The Startup Ecosystem of Vietnam highlights
Source: Startup Ecosystem Report 2024 by StartupBlink
Ho Chi Minh City: A Leading Startup Hub
Ho Chi Minh City continues to shine as Vietnam’s most promising startup hub. The city is recognized among the top 100 cities globally in several key industries, including FinTech (54th), EdTech (62nd), E-commerce & Retail (71st), and Transportation (87th). This highlights the city’s diverse and thriving startup scene.
FinTech Startup MOMO office in Ho Chi Minh City
Source: MOMO
Government Support and Future Outlook:
The Vietnamese government is actively fostering innovation through initiatives like the Vietnam National Innovation Center and the Department of Science and Technology (DOST). These programs, along with international collaborations, are driving the growth of startups across the country.
“The startup landscape in Vietnam, while still developing and facing various obstacles, shows the promising potential that justifies its designation as an emerging market,” states Ms. Nguyen Thi Dieu Hang, CEO of BSSC. “Our positive shift in the Global Startup Index 2024 is a clear sign that we are moving in the right direction.”
Challenges and Opportunities:
While the future looks bright, Vietnam’s startup ecosystem faces challenges such as the need for further technological innovation and integration into traditional manufacturing. However, with a large domestic market, favorable trade agreements, and rising manufacturing costs in neighboring countries, Vietnam has the potential to become a major hub for both services and manufactured goods.
