Vietnam is making significant strides towards its goal of becoming a fully digital society by 2030, and its tech startups are reaping the benefits. In 2020, the government unveiled a national strategy for digital transformation, with the aim of increasing the digital economy’s contribution to the gross domestic product (GDP) from 14% to 20% by 2025. The country aspires to become a high-income economy by 2045, with a strong focus on developing its digital economy.
According to the World Bank, if the digital sectors continue to grow at a rate of 10% annually, the cumulative monetary gains for the economy could exceed US$200 billion between 2021 and 2045, equivalent to the current size of Vietnam’s GDP. To support the growth of tech entrepreneurship, Vietnamese officials have introduced various initiatives. In 2021, startup support centers were established in Hanoi, Da Nang, and Ho Chi Minh City. A roadmap for enhancing innovation in science was also unveiled, with a commitment to allocate 1% of GDP to scientific research. Furthermore, the government pledged to implement business innovation surveys to monitor the progress of startups. These efforts have attracted significant investor interest, as highlighted in a report by venture fund Do Ventures and the National Innovation Center.
Vietnam ranked third in terms of deal count and fourth in deal value in Southeast Asia in 2022. Notably, domestic funds accounted for 45% of the total deal value, indicating strong support for local startups. Although the total investment value in Vietnamese startups decreased by 56% in 2022 compared to the record high of $1.4 billion in 2021, the fintech, retail, healthcare, and payments sectors remained in high demand for funding. Vietnam is home to several notable tech unicorns, including VNPay, a provider of electronic payment solutions, VNG, a gaming startup-turned-conglomerate, Momo, a smartphone e-wallet, and Sky Mavis, the creator of the NFT-based game Axie Infinity.
Other emerging startups making waves in Vietnam include M Village, which offers co-living housing for young professionals, and TopCV, a platform that provides resume creation tools for job-seekers. With the government’s continued support and the country’s digital transformation efforts, Vietnam’s tech startup ecosystem is poised for further growth and success.
