In recent years, Vietnam has emerged as a tech powerhouse, with its vibrant startup ecosystem creating apps and technologies that were once the domain of Silicon Valley. From finding an English tutor to exploring local dining options, Vietnamese entrepreneurs are driving innovation with a new wave of applications tailored to the local market.
A decade ago, such technology would likely have been developed in California's Silicon Valley. However, today, Vietnam's burgeoning startup sector, driven by local tech experts who have returned from studying or working abroad, is making significant strides. This growth has caught the attention of international firms; for instance, French President Francois Hollande recently visited the French tech company Linkbynet in Ho Chi Minh City, highlighting Vietnam's role as a startup hub. Hollande remarked, "What strikes me is the global character... it's Vietnam but it's a global environment, with global clients."
Vietnam's tech industry is characterized by its focus on mobile apps and e-commerce platforms designed for local consumers. With a young, tech-savvy population—average age 30—and rapidly expanding internet connectivity, the country offers a fertile ground for tech innovation. Eddie Thai of 500 Startups notes that “the local market is large, young, fast-growing, and not fully tapped,” emphasizing the potential for growth. Thai’s venture capital firm has invested in various successful projects, including the language learning app Elsa and the ticketing platform Ticketbox.
The local tech talent pool is also notable. Vietnamese students excel in math and science, often outperforming their peers in countries like the United States and Sweden. This skilled workforce, combined with lower labor costs compared to China or Singapore, is attracting interest from major tech players like Google’s CEO Sundar Pichai, who engaged with Hanoi’s tech entrepreneurs during his visit. The Vietnamese government supports this growth through initiatives like Vietnam Silicon Valley, aimed at fostering innovation and technology commercialization.
Despite these advancements, Vietnam's startup sector still faces challenges. Some observers caution about the potential hurdles, noting that "the law needs to be better, the government needs to be more supportive." There are concerns about bureaucratic obstacles and unclear regulations. While the sector is currently smaller compared to other Southeast Asian countries like Indonesia and Malaysia, Vietnam is making strategic efforts to enhance its competitive advantages and attract foreign investment. Romain Caillaud, Southeast Asia director for FTI Consulting, says, “Vietnam is moving up the value chain,” indicating a positive trajectory for the future.
Overall, while Vietnam's tech industry faces growing pains, the sector's dynamic evolution offers optimism for substantial progress in the coming years. As Eddie Thai puts it, "Generally speaking, Vietnam is moving one step back occasionally, but two steps forward." This sentiment reflects the country's ongoing efforts to overcome challenges and capitalize on its tech potential.
