Vietnam’s start-up ecosystem attracts nearly $500 million in 9 months

The Southeast Asian country has climbed up 5 places to 54th globally on Startup Blink's Global Startup Ecosystem Index 2022.

Vietnam rose from 6th to 5th in Southeast Asia, displacing the Philippines, and is well-positioned to overtake Thailand (4th regionally) next year if this positive momentum continues.

Two cities in Vietnam ranked in the top 1000 global startup cities are Ho Chi Minh City and Ha Noi. As the top startup hub in Vietnam, Ho Chi Minh City is moving closer to the global top 100, jumping 68 spots to 111th.

Meanwhile, Ha Noi has decreased 31 spots to 222nd, falling out of the global top 200. 

Currently, the majority of investment capital in Vietnamese startups is in the middle and later stages, with an average investment value of  $9.5 million per round. 

Only 4 percent of capital is poured into early-stage startups, with an average investment value of  $1.152 million.

To attract foreign investors or companies to Vietnam, the Government has offered tax incentives. In 2016, the Government approved the initiative for the startup ecosystem in Vietnam until 2025, more commonly known as National Program 844, to further promote the thriving startup ecosystem in the country.

Since the program's introduction, there has been substantial growth in the number of new startups and in their revenue.

In 2018, the Government approved the Law on Supporting Small and medium-sized enterprises to support start-ups through technology transfer, investments, training, and incentives for venture capital funds.

In July this year, the Government approved the program "Youth Startup Support 2022 - 2030" to assist young entrepreneurs.

Source: VGP