Vietnam has the third-highest rate for startups in Southeast Asia. With accelerator programs, incubators and co-working spaces, Vietnamese cities are becoming fast-paced innovation hubs – especially Hanoi, Ho Chi Minh City and Da Nang.
Today, Vietnam’s innovation ecosystem provides exceptional opportunities for Australia’s tech investors. One factor driving this innovation ecosystem is a young population. With an average age of just 30, Vietnam’s citizens are tech-savvy and digitally active. High rates of internet connectivity and mobile penetration are driving e-commerce and enthusiasm for digital startups.
Government agencies are also contributing to growth. Central Government policies and programs are designed to help connect individuals and organisations – including overseas entities. Provincial administrations are actively supporting their own startup communities with incubators.
Meanwhile, overseas capital and enterprise are welcome. Foreign venture capital funds and international technology organisations are growing their own footprint in Vietnam’s innovation economy.
Vietnam’s startup scene can be traced back to 2004, when venture capital fund IDG Ventures Vietnam was established, pouring more than US$100 million into the
market.1 The fund invested in over 40 companies in tech, media, telecoms and consumer sectors across Vietnam.
Since then, the startup era has evolved in three waves: The first wave (2004-2007); the second wave (2007-2010); and the third wave (2011 to the present day).
2 Vietnam has seen phenomenal growth in the number of startups during this third wave, growing from 400 in 2012 to nearly 1,800 in 2015, and 3,000 in 2017.3 Today, Vietnam has the third-hightest rate for startups in Southeast Asia.
This recent, vibrant startup scene in Vietnam has not only fostered a new class of local entrepreneurs, but also attracted a growing number of foreigners who want to tap into the country’s emerging growth potential and skilled IT workforce.
The Government is also readily supporting the community with various programs to develop a dynamic startup ecosystem such as training workshops, mentorship programs, business incubation and young business accelerator project.
