PM Pham Minh Chinh’s Roadmap to Drive Vietnam’s Startup Ecosystem

Vietnam is intensifying efforts to become an innovation hub in the global startup industry. Prime Minister Pham Minh Chinh focused on the role of startups and innovation in driving economic growth while speaking at the “TECHFEST – WHISE 2023” imprint program in Ho Chi Minh City on November 25. 

The event was a part of the National Innovation and Startup Festival (TECHFEST) and the Week of Ho Chi Minh City Innovation, Startup, and Entrepreneurship (WHISE) 2023. PM Chinh highlighted the importance of endeavors to boost competitiveness, improve production efficiency, and create new avenues for development. 

The event, themed “Unleashing the Potential of National Resources – Empowering Vietnam’s Innovative Startup Ecosystem for Global Integration,” aimed to facilitate connections with financial resources and partners, supporting domestic and international market development for startups.

PM Chinh emphasized the government’s full support for startups and innovation projects. He views them as critical political tasks contributing to economic growth, competitiveness, business performance, and workplace productivity. 

With over 3,000 startups and active participation from 140 universities and research institutions in startup and innovation activities, Vietnam was ranked 46th globally in the Global Innovation Index 2023, standing as a leader among developing economies and fourth in ASEAN. 

Ho Chi Minh City has become one of the top 100 emerging startup markets globally, ranking in the 81-90 range, as per the Global Startup Ecosystem Report 2023 by Startup Genome. 

The Prime Minister highlighted the valuation of Vietnamese startups and innovation enterprises, reaching hundreds of thousands and millions of US dollars, thriving within Vietnam and expanding globally. 

To further push Vietnam into a leading position in startups and innovation, the Prime Minister stressed the need for ministries, sectors, localities, and units to adopt solutions that integrate startups and innovation enterprises with knowledge of science and technology.

Post-COVID-19, Vietnam attracted growing venture capital, reaching $634 million in 2022 and nearly $500 million in the first half of 2023. The Minister of Science and Technology, Huynh Thanh Dat, emphasized the importance of favorable legal frameworks, preferential mechanisms, policies, and close collaboration between businesses and universities/research institutes as crucial resources supporting startups and innovation. 

Additionally, Chairman of Ho Chi Minh City People’s Committee Phan Van Mai stressed innovation and startups, recognizing them as crucial drivers of growth. Ho Chi Minh City has actively implemented solutions to support startups, including facilitating access to capital, markets, advanced technology, and skilled human resources. 

Chairman Phan Van Mai aims to create an environment that nurtures innovation. For this, he announced plans for initiatives like the Startup and Innovation Support Center, the Institute of Advanced Technology and Innovation, and the Revolution 4.0 Center. 

These measures aim to develop Ho Chi Minh City into a leading regional creative urban area over the next decade to become the most dynamic startup and innovation center in Southeast Asia and the region.

The Prime Minister, Pham Minh Chinh, has outlined a comprehensive strategy with six key tasks to advance startup and innovation initiatives in Vietnam further. 

Enhance Awareness:

• Increase understanding of the crucial role of startups and innovation.

Leadership and Direction:

• Strengthen leadership from Party Committees and People’s Committees at all levels.
• Develop breakthrough policies for the rapid application of technology and innovation.

Institutional Development:

• Build and perfect institutions, mechanisms, and policies.
• Focus on capital markets, human resources, science and technology, and new product development.

Synchronized Innovation System:

• Develop the innovation system across the nation, sectors, regions, and hi-tech zones.

Human Resources for Innovation:

• Generate a strong pool of human resources dedicated to innovation.

Financial Resource Attraction:

• Increase attraction and diversification of financial resources for startups and innovation.

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