The Vietnam Open Innovation Ecosystem Report 2022 by the Bambu UP Innovation Connection Platform raised Vietnam’s institution ranking from 83^rd place in 2020 and 2021 to 51^st in 2022. Government mechanisms and policies have boosted the development of the innovation ecosystem in both short and long term and laid a foundation for Vietnam to continue attracting investment.

Vietnam, a good destination for high-quality FDI 

Investment funds in Vietnamese innovative startups have increased over the years, from more than 420 million USD in 2019 to over 810 million USD in 2020, and 2 billion USD from 2020 to 2022. The growth momentum is expected to continue into 2023.

Vinnie Lauria, Founder and CEO of Golden Gate Ventures, attributed these impressive figuresto political stability, a young workforce with high level of education, improved infrastructure, and rapid digitization and innovation. Vietnam is an “auspicious land” for high-quality FDI as international enterprises are looking for investment opportunities to diversify their supply chains and reduce their dependence on the Chinese market.

Vietnam acts strongly to promote innovation

The "Southeast Asian Startup Golden Triangle" report by Golden Gate Ventures notes that the "symbiosis" of Singapore, Indonesia, and Vietnam markets will open up the next growth opportunity for Southeast Asia. 

The report said that Vietnam has been participating in the “Southeast Asian Startup Golden Triangle” by bringing to a young, vibrant domestic market with tech talents and constant innovation. Vietnam offers the perfect combination of top tech talent, an inherently Vietnamese startup culture and a growing domestic market. Putting these factors together explains why more and more global investors are betting big on Southeast Asia, the report said.

According to the Vietnam National Innovation Center (NIC), Vietnamese startups have raised a record 1.4 billion USD across 165 deals in 2021. This growth momentum will continue into 2023 with a projected GDP of 6.7%.

Aiming to contribute to the global economy and enhance its position in the international arena, Vietnam has implemented policies to promote innovation.

Minister of Planning and Investment Nguyen Chi Dung said: “Investment funds and innovative businesses will be important partners of the government, ministries, and sectors in making investment policies for startups and helping Vietnam have an increasingly attractive business environment in the region and the world. The Ministry of Planning and Investment will study and report on the possibility of building a Law on Venture Investment and propose the establishment of a fund to support innovation using private investment in order to quickly and effectively support potential innovative start-up projects.”

Vietnamese investment funds are offering comprehensive support for startups in terms of finance, knowledge, management capacity, and commercialization of products, generating outstanding values for Vietnamese startups when they reach out to the international market and strengthen the national innovative startup ecosystem.