Asian Development Bank - Viet Nams Ecosystem for Technology Startups

Truong Thinh Pham and Aimee Hampel-Milagrosa

JULY 2022

Country Report No. 4

Ecosystems for Technology Startups in Asia and the Pacific

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

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ISBN 978-92-9269-630-6 (print); 978-92-9269-631-3 (electronic); 978-92-9269-632-0 (ebook)

Publication Stock No. TCS220294-2

DOI: http://dx.doi.org/10.22617/TCS220294-2

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In this publication, $ refers to United States dollars and S$ refers to Singapore dollars.

ADB recognizes China as the Peoples Republic of China and Vietnam as Viet Nam, Danang as Da Nang, and Hanoi as Ha Noi.

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Technology-based startup enterprisesor tech startupsare an increasingly important part of the business landscape in Asia and the Pacific. These enterprises use new technologies to create new products or services, or to provide services in a new way. Most startups will not survive, but some will succeed and make an important contribution to economic development. Tech companies like Facebook, Google, and Amazon are among the largest companies in the world today, and tech companies like Tencent, Gojek, Grab, VNG, VnPay, and MoMo are also among the leading emerging companies in Asia. The technology and dynamism they provide are important for economic growth.

Tech startups do not grow in a vacuum. They need access to funding, often from venture capitalists; skilled personnel, including experts in technology and business; good digital infrastructure; and supportive government policies. A strong ecosystem is critical for turning new ideas into commercially viable businesses. Given their growing importance, it is important to better understand the ecosystem in which tech startups develop.

This report assesses the state of tech startups in Viet Nam with a focus on the ecosystem. It examines the extent to which the system supports the growing number of startups in the country. The report focuses on two sectors: agritech and healthtech. While fintech and e-commerce startups are the most prevalent in Viet Nam and other countries, these two sectors were chosen because startups in these sectors not only become successful businesses, but also have a strong impact on development. They support human capital formation and impact the largely poor rural sector.

The report provides recommendations on how the government and other stakeholders can strengthen the ecosystem to enable tech startups to flourish in Viet Nam. It is one of a series of ADB reports that studies the ecosystem of tech startups in Asia and the Pacific.

Albert Park

Chief Economist

Asian Development Bank

This report was prepared by Truong Thinh Pham and Aimee Hampel-Milagrosa. The latter, along with Paul Vandenberg and Matthias Helble, guided the research project. Rana Hasan and Lei Lei Song provided overall management support. The Asian Development Banks Viet Nam Resident Mission reviewed the report and solicited comments from the Government of Viet Nam.

The authors would like to thank key informants from ministries, incubators, accelerators, development partners, investors, academic institutions, and startups who provided invaluable insights that were indispensable for the preparation of the study. The draft report was reviewed by the Department of Market Development and Science and Technology Enterprises, Department of Technology Application and Development, and Supporting the National Innovative Startup Ecosystem to 2025 project, all from the Ministry of Science and Technology (MOST), which provided extensive comments and suggestions. Their involvement is highly appreciated and has helped provide a more detailed overview of the governments tech startup activities in Viet Nam, especially since the outbreak of the coronavirus disease (COVID-19) pandemic. Tuesday Soriano copyedited the report, and Amanda Isabel Mamon provided administrative support, contracting, and manuscript management.