According to StartupBlink’s Startup Ecosystem Report 2024, Ho Chi Minh ranks as the top-rated startup ecosystem in Vietnam, and features in the top 100 cities globally in four industries: fintech, edtech, e-commerce & retail, and transportation. Vietnam continues to rise through the global startup ecosystem ranks, sitting in 56th place globally, and 5th place in Southeast Asia.

StartupBlink has estimated that Ho Chi Minh City currently has 182 registered startups, which accounts for around 52% of the country’s startups. Ho Chi Minh City climbed an impressive 68 spots over three years to secure its current position as the 111th leading global destination for startups, according to InCorp Vietnam. This significant rise highlights the city’s growing appeal within the startup ecosystem worldwide. Ho Chi Minh City’s startup ecosystem is estimated to have a value of $7.35 billion, according to Startup Genome.

Government support

The Vietnamese government has prioritised the development of the country into a startup hotspot. It has implemented several initiatives over the years to support and nurture the growth of the startup ecosystem, as this is where it views the strongest potential for growth.

Some of the initiatives it has introduced include:

• Decision No. 844/QD-TTg – also referred to as Project 844, is a government initiative which launched in 2016. Its purpose was to foster the development of an innovative startup ecosystem across Vietnam, supporting the country’s economic and technological modernisation. The project’s main goal was to help establish 2,000 tech startups in the area by 2025. By building an infrastructure for entrepreneurship and innovation, the project aimed to make Vietnam a competitive player in the global tech and startup market
• Decision No. 1269/QD-TTg – this decision established the National Innovation Center, and fosters partnerships with international tech companies, such as Amazon and Google
• Decision No. 939/QD-TTg – this decision aimed to encourage women to engage in entrepreneurship, which also included supporting female-founded startups
• Decision No. 1665/QD-TTg – aiming to support students into entrepreneurship, with further education surrounding entrepreneurship at a student level, and support for those wishing to pursue entrepreneurship
• Decision No. 569/QD-TTg – outlined a roadmap for driving innovation in science and technology in the area. One of its specific objectives being to improve the contribution of science, technology and innovation to economic growth via scientific research and technological development activities of research institutes and universities

Investment and creating unicorns

Vietnam’s startup market has experienced exponential growth, with investment in Vietnamese startups reaching over $1.9 billion in 2021. This is four times higher than the previous year, and even marks the highest investment in several decades. This surpasses the previous record of nearly $900 million in 2018 and 2019.

With an increasing number of investors in the region, funding is consistently increasing within tech startups year-on-year.

In October 2024, Vietnamese corporation Vingroup JSC started a $150 million fund to back technology startups that focus on AI, semiconductors, and Cloud computing.

Since October 2023, Vietnam has created four unicorns. These are: VNG, the company behind the Zalo messaging app and ZaloPay e-wallet; MoMo, a popular payments platform; VNLife, which owns the payment service VNPay; and Sky Mavis, known for its pioneering work in Blockchain gaming.

Vietnam's startup ecosystem also boasts several other standout ventures, including e-commerce platforms Tiki and Sendo, financial services provider F88, and electric vehicle manufacturer VinFast, which went public on Nasdaq in 2023.

Big tech moving in

In recent months, there has been a lot of stirring within big tech and its plans to move into Vietnam and support the tech ecosystem of the country.

Meta announced that it will be expanding the manufacturing of its latest mixed reality device Quest 3S to Vietnam. It will also be launching a credit-earning AI literacy course at the Vietnam National University.

It has also been reported that Google plans to build a hyperscale data centre in the country. According to state media, earlier this year, Apple pledged to increase spending on its Vietnam suppliers.

Vietnam’s Government has also said that Elon Musk’s SpaceX plans to invest $1.5 billion, tied to its Starlink satellite service, and Jensen Huang, NVIDIA’s CEO, has reportedly expressed plans to set up a base in Vietnam.

As more big tech companies show interest, a spotlight will be shone onto the country, encouraging more tech startup activity. It will also encourage tech-minded professionals to come the area, with the potential that they will start up their own businesses down the road.

Tech hubs in the city

The success of Ho Chi Minh City’s tech startup scene is, in part, thanks to the tech hubs across the city:

• Saigon Innovation Hub: Saigon Innovation Hub is a government- funded startup incubator that was established in 2016. It offers an array of resources, from affordable co-working spaces to hands-on mentorship and funding opportunities, creating an environment for startups to thrive. It also supports entrepreneurs with skill- building programmes, tailored training sessions, and networking events that connect founders with investors, experts, and fellow innovators. Over the years, Saigon Innovation Hub has grown into a key fixture of the city’s startup ecosystem
• Topica Founder Institute: Topica Founder Institute (TFI) is an accelerator programme in Ho Chi Minh City. Known for its emphasis on nurturing early-stage ventures, TFI equips founders with mentorship, structured training, networking events and funding options, all tailored to the challenges of tech entrepreneurship. This support network provides emerging companies with the tools and connections needed to navigate the early stages of growth in Vietnam’s evolving startup ecosystem

Travel hotspot

When considering starting a business in a different country or city, it’s usually the business perks and support available that will draw people to the area, but being a travel hotspot doesn’t hurt.

Ho Chi Minh City is a very popular tourist destination, with a lot of culture in the city. It’s full of history, with many attractions that showcase the country’s past, including the Reunification Palace, War Remnants Museum, and Cu Chi Tunnels, among many others.

The city is also known for its assortment of eateries. After pho, the other best-known Vietnamese dish is banh mi, which is said to have originated in Ho Chi Minh City.

In the first nine months of 2023, Ho Chi Minh City experienced a notable tourism surge, welcoming nearly 27 million domestic travellers – an increase of 24.9% over the previous year. The city also drew approximately 3.6 million international visitors, reflecting a remarkable 69% year-on-year growth. This rise in visitor numbers underscores Ho Chi Minh City’s strengthening reputation as an exciting and popular spot for global tourists. The excitement for Ho Chi Minh City shows its place as an up-and-coming hotspot, not just for business, but for leisure.

Ho Chi Minh City is one of the most vibrant and up-and-coming startup hotspots in South East Asia. Will you take a look for yourself?

This article originally appeared in the November/December 2024 issue of Startups Magazine. Click here to subscribe