Ho Chi Minh City is steadily strengthening its position as one of Southeast Asia’s leading innovation and startup hubs.
Textile industry expo in HCM City gathers over 1,000 firms. Illustrative photo: VNA
Ho Chi Minh City is steadily strengthening its position as one of Southeast Asia’s leading innovation and startup hubs, as local authorities accelerate efforts to expand the city’s innovation ecosystem and attract greater investment into high-tech industries and entrepreneurship.
Currently ranked 110th among the world’s most dynamic startup ecosystems and among Southeast Asia’s top five, the southern economic hub is seeking to build on its existing strengths to move into the world’s Top 100 startup cities in the coming years.
According to the municipal Department of Science and Technology, the city has developed an innovation ecosystem valued at an estimated 7.5 billion USD. The city is home to nearly 30,000 information and communications technology (ICT) enterprises, accounting for around 40% of the country’s total.
Among the city’s flagship technology infrastructures is the Quang Trung Software City (QTSC), which has become a major centre for technological development and digital solutions. QTSC has developed more than 650 products and services, generating cumulative revenue of nearly 6 billion USD and export turnover exceeding 4.35 billion USD.
Meanwhile, the Saigon Hi-Tech Park currently hosts 112 active projects and has established research and innovation facilities such as R&D centres and high-tech business incubators, contributing to the commercialisation of “Make in Vietnam” products.
The city now attracts around half of Vietnam’s startups, 40% of incubation facilities, and 44% of total investment capital flowing into the country’s innovation ecosystem.
Lam Dinh Thang, Director of the municipal Department of Science and Technology, said Ho Chi Minh City is accelerating the restructuring of its startup ecosystem with the ambition of joining StartupBlink’s Top 100 global startup cities.
This goal is not merely about rankings, but also about measuring long-term competitiveness, he said, adding that the city aims to double the number of innovative enterprises, raise the proportion of businesses engaged in innovation activities to over 40%, and increase annual patent growth by 16–18%.
Following recent administrative adjustments, the city’s innovation landscape is also being expanded through new growth areas. Authorities recently announced the establishment of a Science and Technology Urban Area in Binh Duong ward, envisioned as a large-scale hub for science, technology, innovation and high-tech manufacturing linked to the southeast region’s industrial and high-quality service corridor.
The new urban area is also expected to serve as a “sandbox” for piloting emerging technologies, governance models and policy mechanisms before broader implementation nationwide.
Alongside infrastructure expansion, Ho Chi Minh City is moving to address one of the biggest obstacles facing startups - access to capital.
The city recently launched the Ho Chi Minh City Venture Capital Fund, a dedicated financial mechanism designed to support innovative startups and accelerate the commercialisation of research outcomes. Established as a joint-stock company under the Law on Enterprises, the fund is intended to ensure transparency and autonomy in governance and investment decisions.
The fund begins with an initial charter capital of 500 billion VND (19 million USD), of which the city budget contributes 40%, while the remainder comes from private investors, enterprises and financial institutions.
Hoang Duc Trung, Partner at VinaCapital Ventures and head of the new fund’s operations, said the initiative is expected to create a multiplier effect for investment inflows into Vietnam’s startup ecosystem.
Experts believe that stronger participation by the State and major domestic financial institutions will help boost investor confidence and encourage more international venture capital funds to invest in startups based in Vietnam./.