HCMC aims for top 100 global ranking with booming startup ecosystem

Dominating Vietnam’s startup scene with a US$7.4 billion ecosystem, HCMC is leveraging robust government support and new policies to become a top 100 global innovation hub by 2030.

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University students in HCMC are researching and designing a robot (Photo: SGGP)

Dominant position

HCMC currently accounts for over half of the nation’s startups, 40 percent of its incubators, and nearly 50 percent of all venture capital investment flowing into Vietnam. According to the city’s Department of Science and Technology, 2024 was a banner year for support initiatives, with 2,813 projects participating in various competitions and incubation programs.

In particular, the city directly supported the incubation of 202 innovative startup projects, providing fertile ground for promising ideas to be commercialized. This bustling ecosystem is home to over 2,000 startups, more than 100 venture capital funds, and a community of 20,000 science and technology professionals.

HCMC also collaborates closely with leading global technology corporations such as AMD, NVIDIA, Qualcomm, Mitsubishi and countries like Finland, Austria, the UK, Australia, the USA, the Republic of Korea, and Singapore to co-develop technology and build an innovative ecosystem.

Long known as Vietnam’s “startup heartland,” HCMC is the cradle of the nation’s three tech unicorns, namely VNG, MoMo, and Sky Mavis. “The city’s startup ecosystem is currently valued at approximately $7.4 billion and has attracted over $260 million in venture capital,” shared Director Lam Dinh Thang of the Department of Science and Technology.

The city has set an ambitious goal for 2030:

  • to be ranked among the top 100 most dynamic global cities for startups;
  • to have over 40 percent of all businesses engaged in innovation;
  • to bring the commercialization rate of scientific research and technological development results to 8-10 percent;
  • to establish 5,000 innovative startup enterprises;
  • to increase the number of patent applications and protections, with an average increase of 16-18 percent per year;
  • to increase the rate of enterprises in key industries and fields implementing innovative activities from 39.9 percent in 2021 to 45 percent in the 2024-2025 period.

HCMC has identified the fields with notable innovation rates, consisting of electronics-IT; manufacturing, processing; transportation and warehousing, financial services, banking, and insurance. The contribution of total factor productivity (TFP), a key measure of innovation and efficiency, to the city’s economic growth is steadily rising, with science and technology accounting for 74 percent of that TFP growth.

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The cooperation signing ceremony between the HCMC People’s Committee and Advanced Micro Devices (AMD) marks a turning point in promoting high technology and innovation between HCMC and the global semiconductor giant (Photo: SGGP)

Forging foundation of comprehensive support

To realize this vision, HCMC has built a comprehensive support platform. A cornerstone of this strategy is direct financial backing, with the state budget offering promising projects up to VND400-500 million ($15,700 - $19,600) in precious “seed capital.” This is complemented by preferential tax policies and flexible programs that connect startups with domestic and international investors.

The city has also established a formidable infrastructure network, including high-tech parks, 18 dedicated startup support centers, 55 incubators, 10 innovative spaces, a network of prestigious universities and research institutions, as well as over 500 science and technology organizations.

At the center of this network is the HCMC Innovation Hub (SIHUB), which acts as the ecosystem’s “common home.” SIHUB connects state agencies, universities, research institutes, and investment funds. Its incubation programs run for 6-12 months, providing startups with up to VND400 million in funding. “Supporting startups can’t stop at providing capital; we must create an ecosystem that helps them survive and thrive,” emphasized SIHUB’s Deputy Director Le Thi Be Ba.

This vibrant ecosystem is further energized by a packed calendar of over 50 startup competitions and innovation events held annually. Major events like the HCMC Innovation and Startup Week and the INNOEX International Forum and Exhibition have become flagship brands, drawing significant attention from both local and international communities.

Nguyen Huy Dung, member of the Central Steering Committee for Science, Technology, Innovation, and Digital Transformation, stressed that to achieve the national aspiration of placing HCMC in the top 100 global innovation ecosystems, it is crucial to address key bottlenecks.

A prominent feature of Vietnam’s tech landscape is its ‘hardware-software asymmetry.’ While revenue from software production and IT services reaches hundreds of trillions of VND, creating a solid foundation in fields like artificial intelligence, cybersecurity, and digital services, HCMC faces a serious dependence on importing core hardware components such as semiconductor chips, high-performance servers, and network equipment.

To tackle this, the national strategy is pursuing a ‘two-speed’ approach: leveraging the software strengths for immediate economic gains while making strategic, breakthrough investments in foundational ‘hard tech’ like 5G equipment and semiconductor design.

HCMC is perfectly positioned to lead this charge, turning this challenge into a breakthrough opportunity. With determined leadership and a dynamic community, the city is ready for a startup revolution.

HCMC’s special mechanisms

HCMC’s push is bolstered by special mechanisms granted under Resolution No. 198/2023/QH15. These breakthrough policies include:

  • Preferential salaries to attract top talent to public science and technology organizations;
  • Tax exemptions for individuals and organizations involved in innovative startups (under Resolution No. 31/2024/NQ-HDND);
  • A “sandbox” policy to allow the testing of new technologies in high-tech parks, creating a powerful engine for tech enterprise development.

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