HCMC – Three breakthroughs shaping a “megacity: Part 5: Innovation – the driving pillar of Ho Chi Minh City’s breakthrough era

Ho Chi Minh City is transforming into one of Southeast Asia’s most dynamic centers for innovation and startups, backed by strong government support and a vibrant entrepreneurial ecosystem. With the ambition of joining the top 100 most dynamic startup cities worldwide, the city has built a solid foundation to enter a new phase of accelerated growth.

A leading position

HCMC accounts for over 50% of Vietnam’s startups, 40% of incubators, and nearly half of total venture capital investment nationwide. In 2024 alone, the city’s Department of Science and Technology (DOST) supported 2,813 projects through startup competitions and incubation programs such as Startup Wheel, Vietnam Youth Startup, and Green Startup Competition.

Students from Ho Chi Minh City University of Science conduct research and design robotics.

A total of 202 innovation projects were incubated, helping promising ideas scale and commercialize. The city’s startup ecosystem now includes 2,000+ startups, 100+ venture funds, and 20,000+ individuals active in science and technology. HCMC also collaborates with leading global corporations such as AMD, NVIDIA, Qualcomm, Mitsubishi, and innovation hubs from Finland, Austria, the UK, Australia, the U.S., South Korea, and Singapore to strengthen technological capabilities.

According to Lam Dinh Thang, Director of HCMC DOST, the city—home to Vietnam’s three tech unicorns (VNG, MoMo, Sky Mavis)—has long been known as the “land of startups.” The city’s startup ecosystem is valued at USD 7.4 billion, attracting USD 260 million in venture funding, and is gaining global visibility.

Under Resolution No. 98/2023/QH15, HCMC was granted special mechanisms to accelerate innovation, including salary and welfare incentives for leaders of public science institutions, tax exemptions for innovation and startup activities, sandbox policies for testing new technologies, and talent attraction programs.

A new income tax exemption policy (Resolution No. 31/2024/NQ-HĐND) for individuals and organizations involved in innovation startups further encourages sustainable business growth. Sandbox frameworks in high-tech and IT zones also provide testing grounds for emerging technologies.

The city targets by 2030 to rank among the world’s top 100 most dynamic startup ecosystems, with over 40% of enterprises engaging in innovation, 8–10% of research outputs commercialized, and 5,000 innovative startups established. Patent applications and intellectual property registrations are expected to grow 16–18% annually.

Between 2021 and 2023, the share of innovative firms in key industries—electronics and IT, manufacturing, logistics, finance, and insurance—rose from 39.9% to 44.8%, and is projected to reach 45% by 2025. Total factor productivity (TFP) continues to rise, with science and technology contributing 74% of TFP growth to the city’s GRDP.

Building a synchronized policy ecosystem

To realize these ambitions, HCMC is implementing comprehensive support policies for startups. Financially, each project can receive VND 400–500 million (USD 16,000–20,000) in seed funding from the state budget. The city also offers tax incentives, investment matchmaking, and non-financial support such as legal advisory, product development, and market access.

The signing ceremony between the Ho Chi Minh City People’s Committee and Advanced Micro Devices (AMD)marks a major milestone in promoting high technology and innovation collaboration between the city and the global semiconductor corporation.

Infrastructure and talent pipelines are being strengthened, with the development of high-tech zones, agriculture technology parks, 18 startup support centers, 55 incubators, 10 innovation hubs, and a network of universities and research institutes comprising over 500 S&T organizations, including 80 public institutions.

At the heart of this ecosystem is the Saigon Innovation Hub (SIHUB), serving as a “common home” that connects state agencies, universities, research institutes, investors, and startups. SIHUB’s incubation programs provide 6–12 months of structured support and funding of up to VND 400 million, depending on project maturity.

“SIHUB’s programs go beyond funding — we connect startups with investors, offer specialized training in business management, intellectual property, and market development. Supporting startups isn’t just about capital; it’s about building an ecosystem that ensures they can survive and grow,” said Le Thi Be Ba, Deputy Director of SIHUB.

The city’s vibrant startup culture is maintained through over 50 annual innovation events and competitions, including Innovation and Startup Week and the INNOEX International Innovation Exhibition, which have become flagship platforms attracting both domestic and international attention.

Nguyen Huy Dung, Standing Member of the National Steering Committee for Science, Technology, Innovation and Digital Transformation:

“To place HCMC among the world’s top 100 innovation ecosystems, the city must continue leveraging its strengths while addressing key bottlenecks to enable strategic breakthroughs.

Vietnam’s tech landscape faces a ‘hardware–software asymmetry’: while the software and IT services sectors generate hundreds of trillions of dong and support advances in AI, cybersecurity, and digital services, the country remains heavily dependent on imported hardware — semiconductors, high-performance servers, and network equipment. 

The national innovation strategy must therefore operate on ‘two speeds’: maximizing immediate value from software and digital services, while investing strategically in foundational technologies such as 5G equipment and semiconductor design.

With its strong tech base and startup ecosystem, HCMC is well-positioned to lead this transformation — turning challenges into opportunities and driving the next wave of innovation-led growth.”

According SGGP

Source: https://www.sggp.org.vn/tphcm-ba-dot-pha-phat-trien-sieu-do-thi-bai-5-doi-moi-sang-tao-tru-cot-dan-dat-tphcm-buoc-vao-thoi-ky-dot-pha-post816876.html