After more than two years in the doldrums due to the Covid-19 pandemic, Vietnam’s venture capital attractiveness has gradually bounced back, reaching $634 million in 2022 and $413 million in the first half of 2023.
The information was released by Bui Trung Nghia, vice president of the Vietnam Chamber of Commerce and Industry (VCCI), at the National Startup Forum 2023 on Thursday.
In recent years, Vietnam’s startup and innovation ecosystem has developed rapidly, ranking 58th among global startup ecosystems, he said.
According to the Global Startup Ecosystem Index 2023 by StartupBlink, a startup ecosystem map and research center, both Hanoi and Ho Chi Minh City are in the Top 200 global startup ecosystems.
He stated that across the country, many innovative startup support units have been set up, following many diverse and rich models. About 20 localities have been forming innovation startup support centers, while nearly 100 incubators and startup promotion organizations are now operating nationwide.
However, Nghia noted the development of innovative startup ecosystems in different provinces and cities is not consistent, and there are still gaps in performance between localities in the same region.
Therefore, he said leaders of provinces and cities need to direct activities connecting startup businesses with state support organizations, the community and large enterprises; put businesses at the center and support them with practical policies, including financial support for implementing startup ideas and projects in the early stages, interest support, and providing opportunities for them to join specific projects run by large enterprises.
It is necessary to support capacity building for the ecosystem through training local advisors, coaches and lecturers to assist startups, he added.
Nguyen Duc Hien, deputy head of the Party Central Commission’s Economic Commission, emphasized that innovative startups and promoting the development of entrepreneurs are always important driving forces for national development, especially during the Fourth Industrial Revolution.
The Politburo’s Resolution No. 52 on a number of guidelines and policies to proactively participate in the Fourth Industrial Revolution sets out a vision that by 2025, Vietnam will become one of the leading smart production and innovative startup centers in Asia.
On November 17, 2022, the Party Central Committee issued Resolution No. 29 on continuing to promote national industrialization and modernization until 2030, with a vision to 2045, stressing the need to develop science-technology and innovation; develop innovation ecosystems in the fields of industry, agriculture and services; develop a national innovation center; and encourage businesses to establish research centers.
Recently, on October 10, 2023, the Party's Politburo, the highest decision-making body in Vietnam, issued Resolution No. 41 emphasizing the need to stimulate the spirit of entrepreneurship across the entire society, especially in new fields and among the younger generation with specific tasks and solutions set for different sectors and levels, he added.
Hien said in 2023, Vietnam's innovation index ranked 46th out of 132 countries. Vietnam is also one of the seven middle-income countries that have made the most progress in innovation over the past decade.
“In Vietnam, there are many innovative startups reaching or nearing the standards of a unicorn [startup company with a valuation over $1 billion], with unique business models," he added.
Many provinces and cities such as Hanoi, HCMC, Quang Nam, and Danang have paid great attention to innovative startup activities in both breadth and depth.
“For Vietnam to become developing country with modern industry and high middle income status by 2030 and a developed country with a high income status by 2045, it is important to support startups, including innovative startups, to promote productivity growth,” he stressed.