Vietnam Startup Ecosystem in 2025: A Year of Resilience and Transformation

Posted On 29 January, 2025

In 2025, Vietnam's startup ecosystem stands as one of Southeast Asia's most promising innovation hubs. With its dynamic entrepreneurial culture, youthful workforce, and increasing government support, Vietnam is solidifying its reputation as a regional powerhouse for startups. The year 2024 marked significant milestones, with record-breaking investments, the rise of technology-driven solutions, and a shift towards sustainability and inclusivity. As we look ahead, Vietnam’s startups are poised to tackle global challenges while creating transformative opportunities.

Resurgence in Startup Funding

Vietnam’s startup ecosystem saw a significant rebound in 2024, with startups raising over $2.6 billion across 500 deals—a 22% increase compared to the previous year. Ho Chi Minh City and Hanoi remained central to the country’s startup activities, but emerging hubs like Da Nang began attracting attention.

Key sectors driving funding growth included fintech, ecommerce, and edtech, alongside new entrants like green tech and healthtech. Early-stage funding experienced a surge as international investors, particularly from Singapore, South Korea, and the United States, showed heightened interest in Vietnam’s innovation potential. The government’s "National Innovation Center" initiative further enhanced the ecosystem by providing tax incentives, funding, and access to infrastructure.

IPO Activity and Regional Recognition

Vietnam experienced a breakthrough in IPO activity in 2024, with three startups going public on the Ho Chi Minh Stock Exchange (HOSE) and raising $420 million collectively. Notable IPOs included a fintech platform specializing in financial inclusion and a renewable energy company focused on solar solutions.

The success of these IPOs reflects Vietnam's evolving ecosystem maturity and increasing investor confidence. As more startups meet regulatory requirements and scale successfully, the number of IPOs is expected to rise, positioning Vietnam as a key player in Southeast Asia’s public markets.

M&A Activity: Driving Strategic Growth

Mergers and acquisitions (M&A) in Vietnam reached an all-time high in 2024, with 120 deals valued at over $1 billion. Startups in ecommerce, logistics, and fintech were prime targets as larger corporations sought to diversify and digitize their operations.

Prominent deals included regional giants like Grab and SEA Group acquiring local startups to strengthen their foothold in Vietnam’s growing market. The government’s push for cross-sector collaboration has also fueled M&A activity, particularly in industries like green energy and AI-powered logistics.

Digital Transformation and Fintech Boom

The fintech sector remained a standout performer in 2024, raising over $600 million in funding. Digital payment platforms like MoMo, ZaloPay, and VNPay continued to expand their reach, with Vietnam’s unbanked population increasingly adopting digital wallets and mobile banking solutions.

Government-backed initiatives, such as the State Bank of Vietnam’s drive to promote cashless payments, have accelerated the fintech boom. In 2025, the sector is expected to expand further, with blockchain-based financial services and digital lending gaining momentum.

Green Tech and Sustainability Startups

Sustainability emerged as a defining theme for Vietnam’s startups in 2024. Green startups raised over $500 million, focusing on renewable energy, waste management, and sustainable agriculture.

Vietnam’s commitment to achieving net-zero emissions by 2050 has catalyzed investment in green innovation. Notable startups include a solar panel manufacturing company that secured international contracts and a waste-to-energy enterprise that gained global recognition for its scalable solutions. As global investors prioritize ESG (Environmental, Social, Governance) metrics, Vietnam’s green tech startups are well-positioned for growth in 2025.

Women-led Startups: A Rising Force

2024 marked a year of progress for women entrepreneurs in Vietnam. Women-led startups raised $220 million across 50 deals, reflecting a 30% increase from the previous year. Key sectors included edtech, ecommerce, and healthtech, with female founders making their mark in traditionally male-dominated industries.

Programs like the “Women Entrepreneurs’ Fund,” supported by the Vietnamese government and international organizations, have played a crucial role in providing mentorship, funding, and networking opportunities. This rise in women-led ventures signifies a more inclusive and diverse startup ecosystem in Vietnam.

Employment Trends and Workforce Transformation

Vietnamese startups created over 50,000 new jobs in 2024, making a significant contribution to the country’s economic development. The ecosystem’s focus on technology, ecommerce, and logistics has driven demand for highly skilled talent.

However, the country faces challenges in meeting workforce needs, particularly in AI and software development. To address this, the government has introduced initiatives like the "Tech Talent Program," which aims to upskill workers and attract global talent. Startups are also investing in employee development programs to ensure they remain competitive in a rapidly evolving market.

Tech Infrastructure and 5G Rollout

Vietnam made remarkable progress in expanding its tech infrastructure in 2024, with 5G coverage reaching 75% of the population. This connectivity has enabled startups to innovate in areas such as IoT, smart cities, and telemedicine.

The government’s partnership with telecom giants like Viettel and Vinaphone has driven investments in network infrastructure, laying the groundwork for the adoption of 6G technologies by 2028. This robust infrastructure positions Vietnam as a regional leader in digital innovation.

Global Expansion and Cross-Border Collaboration

Vietnamese startups increasingly ventured into global markets in 2024, with over 100 companies expanding to Southeast Asia, North America, and Europe. Cross-border ecommerce platforms, particularly those specializing in fashion and electronics, gained traction in international markets.

Initiatives like "Invest in Vietnam" have attracted foreign investors and facilitated global collaborations, particularly in green energy and healthtech. The country’s strong trade relationships and improving ease of doing business make it an attractive destination for global partnerships.

Looking Ahead to 2025

Vietnam’s startup ecosystem in 2025 faces a year filled with opportunities and challenges. The focus will be on scaling green innovations, addressing funding gaps for late-stage startups, and nurturing talent for emerging industries.

The government’s proactive role in fostering entrepreneurship, combined with international investor interest, ensures that Vietnam is well-positioned to become a leading innovation hub in Southeast Asia. Emerging sectors like AI, robotics, and agritech are expected to drive the next wave of growth.

Vietnam’s startup ecosystem in 2025 exemplifies resilience, ambition, and transformation. With its strategic focus on innovation, sustainability, and inclusivity, the country is shaping its future as a global leader in entrepreneurship. As startups continue to push boundaries and tackle global challenges, Vietnam’s ecosystem will play a pivotal role in defining the region’s economic and technological landscape for years to come.