Vietnam has among the most dynamic and young startup environments in Asia, according to the “Emerging Giants in Asia Pacific” report from HSBC and KPMG.

Figures from Tracxn show that during the Covid-19 pandemic, Vietnam had just 1,600 startups, but the number now stands at more than 3,000, of which four are “unicorns”. The main driver of Vietnam’s digital economy is its large and young population, who are not afraid to experiment and accept new consumer tech products. It also has supportive policies from the government and rising foreign investment.

According to Mr. Tim Evans, CEO of HSBC Vietnam, with its young, dynamic, and educated population, broad internet coverage, high smartphone penetration, and support from the government, Vietnam will continue to maintain its position as an attractive destination for both investors and tech companies, making it a development cradle of potential unicorns.

Similarly, Mr. Luke Treolar, Director of Strategy and National Head of Healthcare and Life Sciences at KPMG Vietnam, said Vietnam’s rapid growth is forecast to be maintained over the next few years. If that happens, it will be the second-largest digital economy in Southeast Asia by the end of the decade, after Indonesia.

Strong startups, according to the report, include VNLife, VNG, Sky Mavis, and Momo.