An aerial view of Ho Chi Minh city (Photo: VNA)

The article cites a report published in July 2022 by KPMG International Ltd and HSBC Holdings Plc which states that the number of startups in the country nearly doubled from the beginning of the COVID-19 pandemic to mid-2022.

According to investment firm Do Ventures, local startups are also competing against businesses throughout Southeast Asia. Investment in startups in Vietnam accounted for 13% of the total venture funding flows into the region after Indonesia and Singapore in 2021.

Bloomberg’s article also mentioned that the Vietnamese Government aims to turn Ho Chi Minh City into a magnet for tech funding in 2023 and is striving to grow its digital economy which is expected to represent 40% of the southern city’s gross domestic product. The city’s authorities thus prioritize attracting foreign investment to high-tech projects, while offering other incentives to lure global talent and international firms to establish innovative research centers.

Experts say that Ho Chi Minh City has qualities to make it the next Silicon Valley including a heavy math and science educational system, a decades-old software outsourcing industry that’s created an abundance of inexpensive and talented engineers, and the benefits of Vietnam’s economic growth - one of the fastest across Asia.