In recent years, the support for startups has gained momentum across Vietnam’s provinces and cities, reflecting strong local alignment with the national innovation agenda. As of now, 60 out of 63 provinces and municipalities have issued programs or action plans to foster startups development, while 40 have promulgated resolutions defining specific funding mechanisms and expenditure levels for startup support activities.
Increasing Local Engagement in Startup Ecosystem Development
Local governments have adopted a wide range of initiatives to support the growth of their respective innovation ecosystems. Key cities such as Ho Chi Minh City, Hanoi, Da Nang, Can Tho, Hai Phong, and Thua Thien-Hue have taken the lead in establishing public incubators, innovation hubs, and co-working spaces tailored to startups. These urban centers offer fertile environments where innovation infrastructure, market access, and human resources converge.
Support measures vary by locality and include:
- Development of localized regulatory frameworks and support policies.
- Capacity-building programs for local ecosystem actors such as incubators, accelerators, and startup founders.
- Financial support and advisory services for startups and intermediary support organizations.
- Startup connection programs, business matching missions, and overseas learning tours.
- Organization of local and regional startup festivals, competitions, and demo days.
These initiatives are essential for nurturing early-stage startups, especially in provinces with nascent innovation capacities.
Regional Disparities in Startup Development
Despite positive progress, the distribution of startups across the country remains uneven. According to recent provincial reports, startups are predominantly concentrated in major urban centers – particularly Hanoi, Ho Chi Minh City, Da Nang, and Hai Phong. As a result, the Red River Delta and Southeast regions account for a disproportionately high percentage of the nation’s startup activity.
Conversely, the Northern Midland and Mountainous Region and the Central Highlands report the lowest number of startups. These regions face systemic barriers such as limited access to capital, fewer skilled human resources, and underdeveloped innovation infrastructure, which hinder their ability to cultivate a thriving startup scene.
Uneven Distribution of Incubation and Acceleration Services
The concentration of innovation activity in key cities is also reflected in the availability of business incubation and acceleration services. Hanoi, Ho Chi Minh City, and Da Nang host the majority of incubators, accelerators, and innovation centers. These institutions serve as crucial platforms that offer mentoring, structured support programs, and networks to connect startups with investors and partners both domestically and internationally.
The presence of expert mentors, well-designed support models, and dynamic startup-investor networks in these cities enables startups to better navigate product-market fit, scaling strategies, and internationalization pathways. However, many localities outside these innovation hotspots still lack such ecosystem enablers, leading to regional gaps in startup development.
Vietnam’s decentralized efforts to build a robust innovation ecosystem reflect the growing awareness and commitment of local governments. However, significant disparities remain in terms of startup concentration, resource availability, and institutional support across regions. To ensure inclusive and balanced growth of the startup ecosystem, future policies should focus on:
- Expanding incubation and acceleration infrastructure to underserved regions.
- Enhancing inter-provincial collaboration and knowledge sharing.
- Tailoring support models to the unique economic contexts of each locality.
- Mobilizing public-private partnerships to bridge regional innovation gaps.
By addressing these challenges, Vietnam can create a more equitable innovation landscape, where startups from all provinces—not just major cities—can thrive and contribute to the country’s transformation into an innovation-driven economy.
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