Vietnam’s startup ecosystem recorded outstanding achievements in 2022 according to the latest report from BambuUp.

The country also advanced five places to 54 out of 100 globally in the latest Global Startup Ecosystem Index from global startup research company StartupBlink.

Total venture capital (VC) raised by startups in the first nine months of 2022 reached $494 million in 94 deals.

There are about 3,800 startups in Vietnam, and three of those have officially become “unicorns”: the VNG Corporation, VNLife - owner of VNPay, a cashless payments company, and Mobile Money (MoMo) - Vietnam’s leading e-wallet provider.

Vietnam currently has 208 active VC funds, including 40 domestic funds.

The country has emerged as a startup hub in Southeast Asia over recent years, catching up with others like Indonesia and Singapore. With a young population, high internet coverage and smartphone use, and government support, it will continue to maintain its position as an attractive destination for investors.

In 2016, it approved the Initiative for the Startup Ecosystem in Vietnam to 2025, more commonly known as National Program 844, to further promote thriving startup ecosystems in the country.

Since the introduction of the program, there has been strong growth both in the number of new startups and their revenue. In 2018, the National Assembly approved the Law on Supporting Small and Medium-Sized Enterprises, to support startups through technology transfer, investment, training, and incentives for VC funds.