"Vietnam's startup ecosystem in 2024 remains on a path of promising development"

DNHN - This is also the assessment of Dr. Chu Duc Hoang, Chief of Office of the National Technology Innovation Fund, when evaluating the overall picture of Vietnamese startups from the beginning of 2024.

According to the report "Global Startup Ecosystem Index 2024" by StartupBlink, Vietnam has regained positive growth momentum in the startup sector, climbing two places in the global rankings, from 58th to 56th. This result reflects Vietnam's relentless efforts to build a strong startup ecosystem, aiming for sustainable and comprehensive development.

In Southeast Asia, Vietnam maintains its 5th position while ranking 12th in the Asia-Pacific region and 31st globally in the number of startups. These results reflect the Vietnamese government's efforts to promote innovation, particularly through the establishment of the National Innovation Center (NIC) under the Ministry of Planning and Investment. This center is not only a model for growth driven by science and technology but also a symbol of Vietnam's commitment to supporting and developing startups.

Additionally, to achieve these accomplishments in innovative startups, the government has also implemented a series of programs to support and develop the startup ecosystem, including the SpeedUP program that provides capital support for startups in Vietnam, the online platform Startupcity.vn, the Vietnam-Finland Innovation Partnership Program, and the National Technology Innovation Fund (NATIF).

Not only supported domestically, but international organizations like USAID and CARE also significantly contribute to the development of Vietnam's startup ecosystem through cooperation programs and technical assistance.

In an interview with Business and Integration Magazine, Dr. Chu Duc Hoang, Chief of Office of the National Technology Innovation Fund, evaluated that Vietnam's innovative startup ecosystem in 2024 remains on a path of promising development. The Ministry of Science and Technology has also organized many events related to innovation, such as TechFest 2024, Techconnect and Innovation Vietnam,... Along with these, funding programs continue to be implemented.

Vietnam's startup ecosystem in the first months of 2024 is considered to have achieved many successes, with development in various fields. Among them, the fields within Vietnam's startup ecosystem that are attracting significant investment from investors include e-commerce, fintech, food technology, enterprise solutions, and information technology services. With unicorns like MoMo and Sky Mavis, Vietnam is emerging as a startup powerhouse in Southeast Asia.

These are examples showing that Vietnam has made significant progress in creating a favorable environment for innovative startups. However, despite these encouraging initial results, experts assess that due to a slower start, Vietnam's innovative startup ecosystem still lags behind some countries in the region and the world, not yet matching Vietnam's potential and capabilities. Along with this are many challenges within the startup ecosystem that hinder the entry of innovative enterprises and diminish the high growth potential of these enterprises.

Reflecting on this reality, Dr. Chu Duc Hoang shared: "In Vietnam, not only are startups behind compared to other countries in the region, but they are also limited in capability. We are limited in the total investment resources for startups, in the number of successful startups (often called unicorns), and even direct support policies for venture capital are facing certain limitations that hinder the development process of startups in Vietnam.

Additionally, the development of the startup ecosystem in Vietnam faces difficulties due to the lag of policies compared to the pace of market development. Although there have been legal documents like Decree 38 and Decree 39 supporting startups, small and micro-enterprises are still lacking capital, support mechanisms, and production chains."

To overcome these challenges and create more favorable conditions for the development of startups, Dr. Chu Duc Hoang believes that it requires a combination of several factors, including:

Firstly, there needs to be support from pioneering enterprises, those who can create a developmental environment for startups by presenting practical problems to solve.

Secondly, regarding support policies, there needs to be synchronization between the government and ministries, including the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Science and Technology,... to create a comprehensive dossier system as well as favorable policy mechanisms for enterprises to develop. Along with this, associations like the Vietnam Internet Association, the Vietnam Young Science and Technology Intellectuals Association, or some industry associations need to actively participate in supporting and creating conditions for startups to develop.

Finally, major universities in Vietnam need to play an important role in promoting the startup ecosystem by creating research groups and innovative initiatives. The combination of these factors will create a solid foundation for the sustainable development of Vietnam's startup ecosystem.

Looking at the medium and long term, Dr. Chu Duc Hoang proposes that startups should explore high-tech fields such as biotechnology, artificial intelligence, and processing, as well as specific areas prioritized by the government under Decree 76. Additionally, the government has a 6-month development strategy, and startups need to closely monitor these resources to guide future startup activities.

Vietnam's startup ecosystem in 2024 is on the path of development, accompanied by new challenges and opportunities. With relentless efforts and support from the government, international organizations, and the business community, Vietnam can undoubtedly become a leading innovative startup hub in the region and globally.

Bao Bao