Recently, Ho Chi Minh City has been listed as one of the top 100 emerging startup markets on a global scale (specifically, the city was placed in the range of 81-90), according to the Global Startup Ecosystem Report (GSER) 2023 by Startup Genome. This result has secured the position of Hochiminh City as the most dynamic startup hub in Vietnam, and restated the competitiveness of the city on a regional scale.
The Global Startup Ecosystem Report 2023 (GSER 2023) is an in-depth and comprehensive analysis of the present status of startup ecosystems throughout the world. The GSER, now in its 11th year, provides insights into the world’s greatest startup ecosystems, emerging trends, and critical difficulties confronting entrepreneurs. It has offered policy advice to more than 145 customers in over 50 countries to date, based on substantial study and analysis of data from 3.5 million entrepreneurs across 290 worldwide ecosystems and over a decade of independent research.
Because Ho Chi Minh City is classified as an emerging economy, the report evaluates it based on six key indicators with the respective weights as follows: performance (40%), funding (30%), market reach (12.5%), experience and talent (12.5%), connectedness (2.5%), and knowledge (2.5%). Each of these characteristics is evaluated and assigned a score ranging from one to ten, with one being the lowest and ten being the highest.
In the first three indicators, Ho Chi Minh City has maintained its scores compared to the 2022 rankings, scoring one point for performance, five points for funding, and one point for market reach, all on a scale of 10.
Ho Chi Minh City has maintained its results in the first three indexes compared to its previous positions in the rankings of 2022. Specifically, Ho Chi Minh City earns one point for performance, five points for funding, and one point for market reach.
According to Startup Genome, with the main contribution coming from the four unicorns, Ho Chi Minh City at the moment ranks third in ASEAN in terms of ecosystem value, with a USD $5.22 billion economic effect, trailing only Singapore and Jakarta.
Mr. Huynh Cong Thang – Founder of InnoLab Asia Company – assessed that Ho Chi Minh City would become an innovation hub in Asia if the government and corporates can take advantage of the current situation and world attention to Vietnam.
At the present times, Ho Chi Minh City possesses enormous promise owing to a number of critical factors. The city’s young and tech-savvy populace, along with a strong emphasis on innovation from both the private and governmental sectors, makes it an ideal environment for nurturing and facilitating the growth of startups. Furthermore, the city has been putting in great effort to attract international investment via numerous socio-economic policies, directives, and activities.
In terms of experience and talent indication, Ho Chi Minh City has made great progress, boosting its score from one point last year to seven points this year. However, regarding the two new indicators (connectedness and knowledge), both only received preliminary evaluations of one point.
One example of the actions that Ho Chi Minh City has taken is the implementation of Plan 672: Support for the Development of the Innovative Startup Ecosystem in Ho Chi Minh City during the 2021-2025 period. To this day, the Plan has had some impact on the city’s startup environment, and such influence is reflected in a report that was released recently by the city’s People’s Committee.
According to the report, in the percentage distribution of the city’s regional GDP, the average investment in science and technology was estimated to reach 0.88%. Specifically, from 2021 to date, Ho Chi Minh City has supported the enhancement of the innovative capacities of 5,063 businesses, surpassing the target set for the 2021-2025 period by 168.8 percent. The city has also nurtured and developed 693 projects, achieving 69.3 percent of the target for the entire period. Furthermore, it has supported 236 innovative startup enterprises in accessing venture capital investment.
Ho Chi Minh City will continue implementing the effective measures outlined in Plan 672. These include organizing and deploying specific policies for the management of science, technology, and innovation, establishing advanced technology and innovation institutes, opening startup innovation centers, and fostering the formation of world-class research bases.
The city will focus on researching, developing, and applying high-tech solutions, products, and services to support the Smart City Initiative, digital transformation programs, and key industries.
Plan 672 will continue to be the guideline for Ho Chi Minh City to carry out effective actions, including supporting the establishments of advanced technology and innovation institutions, opening and nurturing more startup innovation centers, and encouraging the formation of world-class research bases, in order to further utilize the existent resources and coming opportunities, all for the ultimate goal of turning Ho Chi Minh City into a hotspot in terms of the startup ecosystem internationally.
- Hochiminh Committee Party. (2023). He sinh thai khoi nghiep doi moi sang tao cua TPHCM ngay cang lon manh. Available at <https://hcmcpv.org.vn/tin-tuc/he-sinh-thai-khoi-nghiep-doi-moi-sang-tao-cua-tphcm-ngay-cang-lon-manh-1491909870>. [Accessed on August 2, 2023].
- Startup Genome. (2023). The Global Startup Ecosystem Report 2023. Available online at <https://startupgenome.com/report/gser2023>. [Accessed on August 2, 2023].