Vietnam: Asia’s creativity hub for 2019

27 Feb 2019

Austrade has released a new report on Vietnam’s Innovation Ecosystem 2019 to help Australian businesses understand the market and the opportunities for investment and partnership.

Vietnam has the third-highest rate of business startups in South East Asia. With an average age of just 30, the country’s population is young, tech-savvy and highly creative. Coupled with strong government support, Vietnam is emerging as an innovation powerhouse.

The report tracks the rise of Vietnam’s tech-based entrepreneurship over the past decade. It describes the rapid rise of accelerator programs, technology hubs and new business incubators in Vietnam’s innovation epicentres – Hanoi, Ho Chi Minh City and Da Nang.

The report also identifies sectors where innovation is intense and opportunities for Australian enterprises are plentiful. One of these is agriculture. With a population of 96 million and rapid urbanisation, Vietnam is looking to technology to increase productivity on the 12 million hectares of agricultural land now under cultivation.

Finance is another area of opportunity. With one of the lowest bank-penetration rates in Asia – and with just 30% of the population owning a bank account – the retail banking sector is ripe for digital transformation.

As living standards rise, the demand for better healthcare is rising. Vietnam is open to new ideas in service delivery and health information systems, especially as the Health Ministry rolls out new electronic health records in 2019.

Vietnam also offers opportunities for technology research and development. Its principal cities have pools of highly skilled labour – especially in IT and programing skills. Large numbers of engineering graduates enter the labour market each year, often joining global IT companies.

Vietnam has rolled out pro-business policies and programs at multiple levels of government, including at city, province and national level that encourage innovation. The report includes a directory of some of the agencies and organisations that exert the biggest impact on innovation in Vietnam today.

Contact Austrade for more information on Vietnam’s innovation ecosystem.