Introduction: Vietnam’s Startup Boom
In recent years, Vietnam has emerged as one of the most vibrant startup ecosystems in Southeast Asia. The combination of economic growth, a youthful and highly educated workforce, and favorable government policy has created fertile ground for entrepreneurs to plant their ideas and watch them flourish. According to a report, Vietnam now counts over 5,500 startups and has raised approximately US $3.2 billion in funding, and produced six unicorns. In the global ranking, Vietnam climbed to 55th in 2025, while maintaining its 5th position in Southeast Asia. In this article, we explore why Vietnam is becoming a hotspot for startups, offering unique opportunities for local and foreign entrepreneurs alike.
Why Choose Vietnam for Your Startup?
Rapid Economic Growth
Vietnam continues to post strong fundamentals. As global interest turns to longterm growth prospects, a report projects investment in Vietnamese startups to grow by 83% between 2025 and 2030. This signals that although current figures may fluctuate, the trajectory is upward.
A Young, TechSavvy Workforce
Vietnam boasts a young population with a rising digital-native segment. This workforce is both affordable and increasingly adept in technology. For example, reports show Ho Chi Minh City accounts for over 56% of all funding to Vietnamese tech firms.
Favorable Government Policies
Government support is visible in multiple forms—from regulatory reform to foreign investment incentives. One recent measure: Vietnam is finalizing a plan to set up a state-funded “investment support fund” aimed at attracting high-tech FDI including AI and semiconductors. Thus, the horizon for launching a startup is clearer than it was even a few years ago.
Key Sectors for Startup Success
Technology and Innovation
The tech sector remains central. In 2024, although total funding for tech startups dipped to about US $120 million—a 38% decline yearonyear—certain subsectors soared. For example, AI funding in Vietnam rose eight-fold in one report, and agritech investment jumped nine-fold.
Ecommerce and Digital Platforms
Ecommerce and digital platforms benefit from the country’s rapidly growing internet and smartphone penetration. According to a report, three of the most-funded sectors in 2025 are ecommerce/retail, fintech, and edtech—Vietnam’s ecosystem ranked globally #46 in ecommerce & retail and fintech sectors.
Fintech and Blockchain
Fintech remains a major driver: startups such as MoMo and VNPAY exemplify this trend. Bitcoin and crypto adoption is high in Vietnam, and regulatory frameworks are emerging to support digital assets and blockchain use-cases.
Sustainable Solutions and Green Tech
Green tech, agritech, and sustainable solutions are gaining momentum. A recent report highlighted business automation, AI, agritech, and green tech as high-growth areas. For instance, agritech investments jumped 9×, reflecting digitization of agriculture and food value-chains.
Navigating the Legal and Regulatory Landscape
Setting Up a Business in Vietnam
While regulations have improved, setting up a business still requires navigating elements such as business registration, structure (LLC, JSC), and local licenses. The ecosystem supports over 208 investment funds, 79 incubators, and 35 accelerators.
Understanding Foreign Investment Laws
Foreign investors must be cognizant of sectors with restrictions and the requirements for foreign-owned entities. Vietnam’s reforms are gradually lifting constraints, but due diligence remains essential.
Taxes and Compliance Obligations
Vietnam is streamlining processes for tech companies, though compliance around taxes, foreign ownership, contracts, and intellectual property remain crucial. Startups must engage local advisors to stay aligned with changes.
Accessing Funding in Vietnam
Venture Capital and Angel Investors
The VC scene is active though experiencing some cooling. In the first nine months of 2024, publiclyannounced VC investment reached US $372 million. Moreover, a report noted nine megafunding rounds (>$100 million) with three being done by MoMo, Tiki, and VNLIFE.
Government Grants and Startup Support
Government programs and ecosystem support (incubators, accelerators) are growing. For example, in 2024 there were more than 200 investment funds and over 200 coworking spaces reported.
Crowdfunding and Alternative Sources of Capital
Alternative funding channels like crowdfunding, corporate venture capital, and fintech partnerships are gaining traction. However, the volume is still modest compared to regional peers.
Building a Network in Vietnam’s Startup Ecosystem
Startup Incubators and Accelerators
Numerous incubators and accelerators support earlystage companies. These provide mentorship, funding access, and network connections that are vital for scaling.
Networking Events and Conferences
Vietnam hosts a growing number of startup and tech-events, enabling founders to pitch ideas, meet investors, and forge partnerships.
Collaborating with Local Universities
Collaboration with universities gives startups access to research, talent, and newer business models. This is increasingly important as local talent becomes a competitive advantage.
Hiring and Managing Talent in Vietnam
The Benefits of a Local Workforce
Vietnam offers a welleducated workforce with growing digital skills, at labor cost advantages compared to developed markets. This makes it attractive for startups scaling operations.
Recruiting Strategies and Challenges
Yet, competition for top talent—and especially niche skill sets like AI, blockchain, and SaaS—is intense. Reports flag talent as a bottleneck for growth.
Building a Strong Company Culture
Startups that emphasize a mission, innovation culture, and career growth are better placed to attract and retain talent in Vietnam’s dynamic market.
Marketing Your Startup in Vietnam
Digital Marketing Trends in Vietnam
Vietnam’s digital economy is growing rapidly, reinforcing the importance of digital marketing strategies for startups. With high internet and smartphone penetration, digital channels are often primary.
Effective Social Media Strategies
Platforms like Facebook, Instagram, and Zalo are key. Engaging content customized for local consumers is essential.
Influencer Marketing and Local Partnerships
Influencers and local partnerships are particularly effective in Vietnamese consumer markets, especially in ecommerce, lifestyle, and fintech segments.
Understanding Vietnamese Consumer Behavior
Vietnamese consumers are becoming increasingly sophisticated in their food choices, with a noticeable shift toward healthier and more diverse dining options. Young professionals and expatriates are driving demand for international cuisines, while older generations continue to favor traditional Vietnamese dishes.
Understanding this dichotomy is important for foreign F&B businesses. Companies must tailor their offerings to meet the expectations of both traditional and modern consumers, ensuring they remain relevant across a wide demographic spectrum.
Challenges of Starting Up in Vietnam
Cultural Differences and Business Etiquette
Understanding local business protocols, building relationships (often facetoface), and respecting hierarchical structures remain essential for foreign founders.
Infrastructure and Logistics
While improving, infrastructure in some regions still lags. For example, the leading cities dominate startup funding and activity, with secondary hubs still catching up.
Competition and Market Saturation
With thousands of startups (over 5,500 per recent report) entering the landscape, competition is intense. Being differentiated is critical.
Conclusion: The Future of Startups in Vietnam
Vietnam’s startup ecosystem shows impressive momentum, but also requires strategic thought to navigate. With rising investment, maturing sectors, and a clear digital push, the country is poised for further growth. Entrepreneurs who embrace innovation, local nuances, and longterm thinking will find Vietnam an excellent launchpad. As the ecosystem evolves, so too will the opportunities for bold startups looking to shape the future in Vietnam.
Foreign F&B businesses in Vietnam must adhere to local tax laws and regulations. Corporate income tax rates for foreign-invested businesses typically range from 20% to 22%, with some exceptions for specific industries and regions. VAT is set at 10%, and various excise taxes may apply depending on the type of product or service.
Understanding the local tax structure and ensuring compliance with employment laws, such as those relating to minimum wage and labor rights, is essential for avoiding legal pitfalls.