HCMC, Hanoi, and Da Nang lead the way in embracing the national innovation and startup movement and other localities are set to follow suit.

Vietnam is regarded as one of the most dynamic and promising destinations for
innovation and startups in Southeast Asia, with a rapidly-growing, diverse, and
well-connected ecosystem, and ranked 55th globally and fifth in Southeast Asia in
the 2025 Global Startup Ecosystem Index published by StartupBlink.

Localities around the country have also made remarkable progress within this
vibrant national startup landscape, with three cities featured in the global rankings:
Ho Chi Minh City at 110th (up one place from last year), Hanoi 148th (up nine places),
and Da Nang 766th (up 130 places). Startup support movements in cities and provinces
nationwide have gained strong momentum in recent years, reflecting local consensus
and active participation in the national innovation program.

Expanding nationwide

Ho Chi Minh City, Hanoi, and Da Nang stand out for creating favorable environments
where innovation infrastructure, markets, and human resources converge, creating
fertile ground for nurturing creative ideas and new business models.

Ho Chi Minh City, in particular, is considered a “promised land” for startups
and is the cradle of many tech unicorns. The city is home to more than 2,000 startups,
or around half of Vietnam’s total, and attracts some 44 per cent of startup investment
capital nationally. Its startup ecosystem is currently valued at $7.4 billion, and
features over 100 venture capital funds, creating a dynamic and promising environment
for innovation.

The city has continually expanded its innovation and startup activities, confirming
its strong commitment to becoming a leading hub in the field. Of particular
note, the inauguration of the Startup Innovation Hub of Ho Chi Minh City (SIHUB)
in late August marked a major step forward in implementing Politburo Resolution
No. 57-NQ/TW on fostering breakthroughs in science and technology and in achieving
the goal of positioning the city among the world’s Top 100 most dynamic innovation
ecosystems.

Moreover, the Ho Chi Minh City People’s Committee has announced plans to establish
a new Ho Chi Minh City Innovation Hub – a large-scale venue for research, creativity,
and collaboration aimed at accelerating the city’s development and spreading its
impact across the southern key economic region and Vietnam as a whole.

Hanoi has also been actively promoting local startup support programs, and
has about 1,000 innovative startups. The Hanoi People’s Council recently approved
a pilot project to establish the Hanoi Venture Capital Fund (HVCF), designed to
invest in high-tech enterprises, science and technology companies, and innovative
startups in key sectors, representing an important step in promoting innovation
and commercializing scientific and technological products.

In addition to creating the venture fund, the capital also introduced policies
that cover up to 70 per cent of the cost of capacity-building programs for innovative
startups and subsidized infrastructure use at high-tech parks, innovation centers,
and technology incubators.

Meanwhile, Da Nang has been steadily asserting its position as a dynamic innovation
hub for the central region and central highlands. 2025 marked a milestone, with
Da Nang making its debut among the world’s Top 1,000 startup ecosystems – recognition
of both its sound strategic direction and the city government’s long-term vision
for developing a knowledge and technology-driven economy.

The city is also carrying out a project to develop an international-scale Innovation
and Startup Center, which is expected to be completed by December. This is among
its key projects to realize its ambition of becoming a center for innovation and
startups in the central region and central highlands.

Beyond these major cities, other localities such as Hai Phong, Nghe An, and
Hue have also been active within Vietnam’s vibrant startup movement, reflecting
the strong and growing spirit of innovation spreading around the country.

Closing the gap

Though many localities are showing positive momentum in innovation and entrepreneurship,
the distribution of startups nationwide remains uneven.

According to the Vietnam National Startup Support Center (NSSC), a significant
gap still exists between regions in terms of startup density, resources, and institutional
support. Outside of major hubs like Hanoi, Ho Chi Minh City, and Da Nang, many localities
still lack essential drivers to grow their startup ecosystem, resulting in clear
disparities in development pace between regions.

To build a more balanced and inclusive ecosystem, upcoming policies should
prioritize expanding incubation and acceleration infrastructure to less-developed
areas, which would help unlock local innovation potential. Strengthening inter-provincial
cooperation, sharing best practices, and replicating successful startup models would
also be key to creating a stronger, interconnected national network for innovation.

Equally important is the need for support models tailored to the unique socio-economic
conditions in each locality, rather than applying a uniform model from major cities.
Greater mobilization of public-private partnerships (PPPs) will also be crucial
in narrowing the innovation gap between regions, ensuring more equitable access
to technology, finance, and training for startups nationwide. Direct support for
startups themselves remains an indispensable part of developing local innovation
ecosystems.

Ms. Dang Thi Luan, Acting Director of SIHUB, noted that more than 70 per cent
of startups in Ho Chi Minh City lack investment capital, 45 per cent face legal
barriers, and 30 per cent struggle with a shortage of skilled talent – factors that
hinder research, commercialization, and market expansion. This, she explained, reflects
a broader challenge shared by most cities and provinces around the country.

She suggested that the city upgrade and synchronize both physical and technological
infrastructure to create an environment more conducive to startups working, experimenting,
and growing. At the same time, policies should encourage broader participation from
venture capital funds, large corporations, tech companies, and universities to form
a closely-linked startup value chain.

Regarding human capital development, Ms. Luan emphasized the need to expand
community training and capacity-building programs focused on innovation, entrepreneurship,
AI, and the semiconductor industry. “International cooperation programs on training,
incubation, networking, and market expansion for startups should be strengthened
further,” she said.

-Phuong Nhi