Office buildings in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam’s youth startup ecosystem has attracted US$529 million in venture capital funding this year, a study has shown.
Most young entrepreneurs fall within the 16 to 35 age range, with the largest group being those aged 30 to 34 (around 6.6 million people), according to the National Study on the State of the Ecosystem for Youth Entrepreneurship in Vietnam.
This demographic has contributed to increasing the skilled workforce rate by 12.4% between 2009 and 2023, reaching over 27.2% currently.
The study evaluated the ecosystem based on six key factors including labor, entrepreneurial culture, technology and innovation, policy and regulatory frameworks, enterprise and infrastructure support, financial support and markets.
An online survey of 210 young entrepreneurs and founders revealed that 36% of startups had not yet registered as legal enterprises. Meanwhile, 52% of young entrepreneurs received support from business incubators and 26.7% of start-ups reported effective operations.
However, challenges persist, with start-ups facing financial difficulties and a lack of strategic advisors. There is also a notable urban-rural divide in access to resources and support.
Moreover, female entrepreneurs face more obstacles, with 31.8% of female-led enterprises reporting poor performance. 38.6% of women entrepreneurs lacked access to mentors and only 21.6% received technical and technological support.
The study notes improving policies to support young entrepreneurs and the rapid advancement of technology and innovation as key drivers for the start-up ecosystem. However, barriers remain, including complex administrative procedures, limited collaboration among stakeholders, skill gaps and low risk tolerance among young entrepreneurs.
The research was conducted by the University of Economics HCMC and Youth Co:Lab Vietnam, which is co-created by the United Nations Development Programme and the Citi Foundation.
