Vietnam Fosters an Inviting Climate for Innovation and Startups
In a significant commitment to fostering innovation, Vietnam has undertaken an array of major guidelines, policies, and orientations to boost the development of startups and innovation. Recognizing the pivotal role of science, technology, and innovation, the Vietnamese Party and State has earmarked them as essential components for economic growth, aiming to elevate productivity, quality, efficiency, and competitiveness within the national economy.
Recent years have witnessed remarkable strides in Vietnam’s innovation landscape. The nation has impressively ascended the Global Innovation Index (GII), advancing from the 59th spot in 2016 to the 46th in 2023. This progress secures Vietnam the fourth position in the Association of Southeast Asian Nations (ASEAN), maintaining its status as the second among lower middle-income countries in terms of innovation. Furthermore, Vietnam stands out as one of the seven middle-income countries demonstrating the most significant innovation advancements over the last decade.
In a groundbreaking move on March 12, 2024, the Ministry of Science and Technology introduced the Provincial Innovation Index (PII) for the first time. The 2023 PII shines a light on the various strengths, weaknesses, potentials, and indispensabilities across the country, aimed at advancing socioeconomic development grounded in science, technology, and innovation at the local level.
The Vietnamese Government has spearheaded numerous investment initiatives to bolster innovation metrics. These include the creation of a national innovation system that brings together a network of experts and scientists, the deployment of policies to stimulate innovation within businesses, and the establishment of the National Startup Support Centre.
The groundwork for a robust national innovation system is being laid, underscored by policy frameworks that guarantee intellectual property rights, invigorate scientific and technological endeavors, reduce administrative hurdles, initiate support funds, and enhance connections between research and the commercial sector.
Nationwide, innovation and startup support centers are emerging, particularly in key cities such as Hanoi, Da Nang, and Ho Chi Minh City, alongside more than 20 other localities. These centers serve as vital links between local, regional, and national innovation efforts.
The emphasis on innovation is increasingly resonating with Vietnamese enterprises, positioning such endeavors at the heart of their operational and business strategies. The impressive growth in startup culture is evident, with approximately 3,800 innovative startups emerging last year. Among these, 11 startups have reached valuations exceeding 100 million USD, complemented by 208 investment funds, 84 incubators, and 35 business promotion organizations. This ecosystem places Vietnam third in ASEAN for innovation and startup investments, trailing only Indonesia and Singapore.
Vietnam’s concerted efforts to cultivate an environment conducive to innovation and startups underscore its commitment to leveraging science, technology, and innovation as cornerstones for economic development and competitive edge. Through strategic investments and policy support, the country is poised to scale new heights in its innovation journey, setting a benchmark for dynamic economic transformation in the region.
