Rapid Growth of Vietnam's Thriving Startup Community Unveiled in Tracxn Report
Vietnam's tech startup ecosystem has experienced remarkable growth over the past decade, with six local startups joining the exclusive club of unicorns—companies valued at over $1 billion. This surge in success has been fuelled by a total investment of $3.2 billion, according to recent reports.
The foundation for this growth was laid over the years through supportive policies and ecosystem initiatives. Notable among these are the establishment of Vietnam Silicon Valley in 2013, the National Technology Innovation Fund in 2015, Project 844, and the 2017 Law on Support for Small and Medium Enterprises.
The 2017 law played a pivotal role in legitimising startups as legal entities, creating the framework for today's thriving ecosystem. This legislation has fostered an environment where over 5,500 startups now operate, with the majority having been founded between 2015 and 2025.
Ho Chi Minh City has been a significant hub for this growth, attracting $1.8 billion in funding. Hanoi, too, has seen significant investment, with nearly $1 billion secured, with VNLIFE accounting for more than half of that amount.
The emergence of multiple unicorns and billion-dollar funding years indicates both local and global investor confidence in Vietnam's startup scene. This confidence is further evidenced by the numerous acquisitions and Initial Public Offerings (IPOs) that have taken place. For instance, IPOs from BeLive Technology and TCBS have signalled growing investor appetite for Vietnam's next wave of scale-ups, particularly in fintech and digital services.
Some of the startups expanding aggressively in various sectors include Sendo, OnPoint, Telio, Thuocsi, and Nhi Dong 315, which are making their mark in e-commerce, healthtech, and omnichannel enablement. Global and regional players are also consolidating Vietnam's digital and consumer markets, as demonstrated by deals such as Central Group's $1.05 billion joint takeover of Big C and Nguyen Kim Group, and Sea Limited's $64 million acquisition of Foody.
The venture capital sector accounts for over 90% of all on-year funding from 2020 to 2025 YTD. Notable venture capital firms that have demonstrably invested in Vietnamese startups are mainly backed by companies such as Samsung, various Apple-linked vendors, and several foreign-invested enterprises active in the electronics and components sector, which collectively dominate the market and investment landscape in Vietnam.
Neha Singh, Co-founder of Tracxn, has commented on the maturity of Vietnam's tech startup ecosystem, attributing it to a mix of government support, urban innovation clusters, and venture capital influx. The collective funding raised by high-growth companies in Vietnam exceeds $400 million, with 76 exits to date, including 52 acquisitions and 24 IPOs.
In 2021, a record-breaking $1.2 billion in funding was secured, marking a significant milestone in Vietnam's startup journey. With nearly three-quarters of all funding, or $2.3 billion, having been secured in the past five years, it seems that Vietnam's tech startup ecosystem is poised for continued growth and success.
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