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| Vu Ngoc Quyet, Founder and CEO of LocaAI, speaks about AI technology at TECHFEST Vietnam 2025, held in Hanoi from December 12-14, 2025. (Photo: VNA) |
Hanoi (VNA) – Vietnam has emerged as an appealing destination for technology investment in Southeast Asia, according to the Vietnam Innovation Startup Ecosystem Report 2025 announced by the Ministry of Science and Technology on December 12 on the sidelines of TECHFEST Vietnam 2025.
The report notes that after more than a decade of development, Vietnam’s startup ecosystem has entered a phase of deeper growth and stronger international integration. The country is now home to more than 4,000 startups, two unicorns, and dozens of companies approaching unicorn status.
Luong Van Thuong, head of the innovative startup division under the ministry’s Authority of Startups and Technology Enterprises, said the country expects to add three to four more unicorns by 2030, focusing on 11 strategic technologies, with artificial intelligence, semiconductors and green technology identified as top priorities.
Compared with previous editions, the report is assessed as being richer in data, reflecting a policy shift from broad-based support to a more targeted, in-depth allocation of resources. A key highlight is the plan to establish a national venture capital fund, with initial state capital of around 20 million USD and a target size of at least 100 million USD. Localities are also encouraged to set up venture capital funds using local budgets as seed capital to attract private-sector and international investors.
The ecosystem continues to be evaluated under the 5P framework, comprising policy, progress, capital, planet and people. In terms of the “planet” pillar, the Net Zero 2050 target opens up opportunities in clean energy, recycling and carbon credits, although Vietnam still faces challenges related to core technologies and reliance on imports. There have also been an increasing support for women entrepreneurs as well as students engaged in startup activities.
At the central level, the Ministry of Foreign Affairs and the Ministry of Finance have rolled out a range of cooperation programmes and support policies, including the P4G Summit, the Economist Up competition, as well as the Government’s Decree No. 198/2025/ND-CP on private economic development and Decree No. 97/2025/ND-CP on preferential mechanisms for innovative startups at the Vietnam National Innovation Centre.
At the local level, incubation and startup support activities expanded markedly in 2025, though they remain concentrated mainly in the Southeastern region and the Red River Delta. The Central Highlands and the northern mountainous and midland regions continue to face shortages of resources and experts.
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| Dr Vu Viet Anh, head of the Martech Village at TECHFEST Vietnam 2025, delivers a presentation on building Vietnam’s startup ecosystem at the national event, held in Hanoi from December 12-14, 2025. (Photo: VNA) |
The year also witnessed vibrant open innovation activities, with numerous large-scale events. The report identifies eight promising startup sectors, including climate technology, the creative economy, technology for the elderly, education technology, plastic industry innovation, women-led enterprises, electric vehicles, and overseas Vietnamese startup communities.
For the first time, “social listening” analysis was applied in compiling the report. The ministry observed that 2025 was marked by fluctuating sentiments: a subdued and anxious start, mid-year optimism driven by new policies, and an end-of-year mix of pride alongside crises of confidence stemming from scandals involving several prominent figures in the startup community./.
