Recently, the Ministry of Science and Technology (MOST) introduced the Draft Project on the Startup Nation. Notably, the project’s goal is to make entrepreneurship an opportunity for all people, creating one-person enterprises and developing 10,000 startups by 2030.
Strong institutional reform
According to Pham Hong Quat, Head of the Department of Startups and Technology Enterprises, the core philosophy reflected in the Draft Project on the Startup Nation is that “every citizen can start a business on the basis of digital technology, new technologies, and creativity in all fields.” This also means that every citizen will have access to necessary conditions for start-up. Here, technology startups and innovation enterprises can grow rapidly and disrupt old models, play a central role in spreading the entrepreneurial spirit in society.
Emphasising the role of innovative startups, Minister of Science and Technology Nguyen Manh Hung said that it is necessary to “build a Startup Nation, start-up based on digital technology and innovation, creating institutions and digital tools so that Vietnamese enterprises can even be run by just one person.” He added that “building a national innovation system needs to be tied to the needs of businesses and society.”
It is assessed that Viet Nam currently has a quite dynamic startup ecosystem, with more than 3,000 startups in 2024. The value of venture capital investment reached 1 billion USD.
Strong institutional changes, especially the promulgation of the “strategic quartet” with Resolutions 57, 59, 66, and 68, are considered to have created openness for startups and the investment market. These are favourable conditions for start-ups. Many related laws have also been adjusted to create a new legal framework. Thanks to this, Viet Nam may soon have effective policies similar to advanced countries, such as venture capital investment funds backed by the government or mechanisms for ordering major challenges for corporations and startups.
According to Pham Hong Quat, Viet Nam’s innovative startup ecosystem has recently bounced back after a quiet period caused by the pandemic, global supply chain disruptions, and a lack of venture capital investment. Currently, many startups are quickly adopting technologies, particularly artificial intelligence (AI), blockchain, and new service technologies, especially Vietnamese startups’ increasing participation in international projects.
“Many large domestic corporations and enterprises have also begun to support startups by creating launchpads. Many universities have started forming more professional training programmes oriented towards innovation. Some private funds have begun to establish startup support funds. This shows that Viet Nam’s startup ecosystem has been developing quite strongly. From the perspective of international investors, Viet Nam continues to be an attractive destination, a bright star on the region’s technology map,” Quat said.
Specialised stock market for startups
Compared to many countries in the region, Viet Nam’s startup ecosystem is still weak. According to Quat, the ability of Vietnamese startups to raise capital globally and attract large venture capital investments is still far behind Indonesia and Singapore. Particularly, Singapore, which has dozens of technology “unicorns”, accounts for 60–70% of total investment capital across the region.
“Viet Nam needs a better venture investment environment. The establishment of national and local venture investment funds is not enough. In my view, organising a specialised stock market for innovative startups is extremely necessary in the future. This market should have specific regulations distinct from the general rules applied to public businesses on stock exchanges,” Quat analysed.
He added that raising funds on the stock market would give startups more motivation to perfect their models and have more resources to accelerate and break through. “If the specialised stock market for startups is effectively established, it will become a launchpad for the whole ecosystem.” This will be an opportunity for them to become “unicorns.”
Highlighting the concept of a Startup Nation, Quat cited examples of startup models in other countries. For example, Israel focuses on the global market and high technology, exporting startups and technology products to the world by partnering with large corporations. The Republic of Korea leverages large corporate investments to advance technology and support SMEs. Meanwhile, Singapore applies deep technology in various fields, establishing state-backed funds to support different stages of startups.
Emphasising the need to foster an innovation culture among the people and make innovation a lifestyle for all citizens and organisations, Quat affirmed that building a Startup Nation is a long-term strategy.
Accordingly, promoting innovation culture, with the “Startup Nation” movement, aims to have 40% of enterprises participating in innovation activities by 2030. The development of high-tech zones in Ha Noi, Da Nang, Ho Chi Minh City, and Can Tho will attract foreign investment.
He also stressed that science – technology, innovation, and digital transformation will create new environments, tools, and markets for startups. At the same time, they will change business methods and models to create new products, enhance capacity, productivity, quality, and efficiency, thereby generating breakthroughs and rapid growth.
The Head of the Department of Startups and Technology Enterprises also outlined six groups of tasks to be completed. Among them, priority should be given to shaping mindsets, awareness, and a culture of risk acceptance in designing regulations and support programmes. At the same time, infrastructure and ecosystem development must be promoted, especially shared technology and digital infrastructure.
Another task is to establish and implement new policies. Quat cited examples such as policies that could apply to “one-person enterprises,” where individuals can leverage the power of AI to operate all business activities.
In addition, the Department of Startups and Technology Enterprises believes that it is necessary to nurture “startup seeds” through models such as “community advisory groups” in communes and wards, startup universities, and innovation universities. Finally, supplying capital for startups must be strengthened, including via national and local venture investment funds.
Quat proposed focusing on incubating and accelerating startups through models such as Deeptech Hub, Startup Park, Startup City, and incubators at universities, institutes, and corporations.
The goal set by the Department of Startups and Technology Enterprises in the Draft Project on the Startup Nation is that by 2030, Viet Nam will be among the top 40 in the Global Innovation Index (GII) and in the top 45 startup ecosystems (StartupBlink), aiming to build one million “one-person enterprises.” The project also targets the development of 10,000 startups and the attraction of 3 billion USD of venture capital investment each year.
