Vietnam’s startup ecosystem is experiencing rapid growth, establishing itself as a rising force in Southeast Asia. However, persistently low survival rates underscore an urgent need for more robust policies, more capital, and a deeper talent pool to help startups thrive and scale.

According to the Global Startup Ecosystem Index 2025, Vietnam has risen one spot to rank 55th globally, while maintaining its position as the fifth-strongest startup ecosystem in Southeast Asia. Notably, HCMC has secured a place among the world’s top 30 Blockchain hubs, highlighting the remarkable momentum of the country’s emerging startup landscape. However, data presented at the Vietnam Private Sector Forum (VPSF) 2025 reveal a sobering reality: only around 10% of startups survive beyond five years, with a mere 3% considered truly successful. In contrast, approximately 30% fail or go bankrupt within the first one to two years, while 60% face significant challenges during years three and four. Speaking at the “Incubation Meetup – Vietnamese Startups, The Global Stage” held in HCMC on August 19, Nguyen Dinh Quy, CEO and co-founder of WorkFlow Space, emphasized the significant hurdles facing many Vietnamese startup founders. He noted that one of the most critical yet frequently overlooked factors is the lack of a global mindset. In today’s competitive startup landscape, success demands more than just innovative ideas — founders must also grasp global trends, strengthen their English proficiency, and stay abreast of cutting-edge international business models. Despite notable progress, Vietnam’s startup ecosystem continues to grapple with fragmentation. Many entrepreneurs are forced to “go it alone,” often lacking timely support from government agencies, the broader startup community, and international organizations. According to Le Van Anh, a representative of Business Finland, a government-backed agency supporting businesses in Finland, Vietnam has introduced policies aimed at fostering its startup ecosystem. However, implementation remains a significant challenge. A lack of accessible information, limited specialized resources, and burdensome administrative procedures continue to hinder startups from tapping into the support available to them. Van Anh also emphasized that many startups neglect a critical step in their journey: testing product–market fit. “To succeed, beyond having a novel idea, founders must clearly determine whether their product truly addresses consumer needs,” she noted. Without this essential validation, even the most promising innovations risk falling short of market acceptance. Beyond external challenges, a deep-rooted fear of failure and hesitation to take bold risks has emerged as a major barrier for many young entrepreneurs in Vietnam. According to Van Anh, the early stage of a startup is universally the most daunting — not just in Vietnam, but across the globe. It is a phase marked by limited funding, lean teams, difficulty in reaching potential customers, and above all, the relentless pressure to keep the company afloat. These hurdles, Van Anh observed, often discourage founders and lead them to abandon their ventures prematurely, even when armed with innovative ideas and genuine passion. Quy of WorkFlow Space highlighted that many countries already offer substantial government support for startups — Singapore, for instance, covers up to 70% of app development costs, while Finland provides 60% support through Business Finland. Vietnam’s startup ecosystem has also made impressive strides, now featuring over 208 investment funds, 79 incubators, and 35 accelerators. The National Technology Innovation Fund plays a pivotal role by offering not only financial backing but also facilitating technology transfer. In addition, international programs such as the Swiss Startup Program and CARE contribute valuable resources through training, mentorship, and global networking opportunities. To attract venture capital, the Vietnamese Government has introduced tax incentives that have successfully drawn in prominent investors such as Antler, 500 Startups, and several Singapore-based funds. These investors offer far more than financial backing — they bring critical value through mentorship, strategic partnerships, and access to international markets. “Vietnam’s startup ecosystem is expanding rapidly and still holds significant room for breakthrough,” said Annamari Soikkeli, Global Program & Startup manager at Business Finland. Experts believe Vietnam has a strong foundation to rise further on the global startup map. However, to empower young founders to pursue bold and ambitious ventures, the country must address structural challenges, ensure consistent policy implementation, deepen international collaboration, and fully leverage the private sector’s role in driving innovation and growth. WorkFlow, OITI, and Business Finland have jointly hosted the “Incubation Meetup – Vietnamese Startups, The Global Stage,” an event aimed at bridging Vietnam’s startup ecosystem with leading international incubators, including Business Finland and ETH Vietnam.As part of the program, organizers unveiled the Next Wave of Startups 2025 (NWoS 2025) competition, designed to spotlight trailblazing startups in AI, Blockchain, and Climate Tech. The initiative aims to showcase and accelerate the next wave of innovation shaping Vietnam’s dynamic entrepreneurial landscape.NWoS 2025 will take place alongside Open Innovation Week 2025, scheduled for November 24–30, as part of the 6th HCMC Economic Forum. The initiative is co-hosted by the Centre for the Fourth Industrial Revolution (C4IR) and SOIhub, under the direction of the HCMC People’s Committee.