Among the policy’s most notable highlights are its targeted measures to support innovation-led startups, signaling a national commitment to fostering entrepreneurship in a rapidly evolving digital economy.
An ecosystem brimming with potential
As of the end of 2024, Vietnam’s innovation-driven startup ecosystem included over 4,000 startups, with two achieving unicorn status and 11 others reaching valuations above $100 million. Supporting this vibrant ecosystem are more than 1,400 startup support organizations, 202 co-working spaces, 208 investment funds, 35 business accelerators, and 79 incubators. Furthermore, around 170 universities and colleges have launched entrepreneurship initiatives, and over 20 local and national innovation centers have been established across the country.
These numbers reflect significant progress, and global rankings echo the sentiment. In 2024, Vietnam rose two positions to rank 56th on the Global Startup Ecosystem Index by Startup Blink. Hanoi and Ho Chi Minh City placed in the top 200 cities globally, while Da Nang made it into the top 1,000.
Despite ongoing turbulence in global venture capital markets, Vietnam has remained relatively resilient. In 2024, nearly 100 venture capital funds poured approximately $529 million into Vietnamese tech startups—a 17% decline from 2023. However, considering the 35% global drop in venture capital, Vietnam’s performance stands out as comparatively stable.
Investors such as Ngo Thuy Ngoc Tu, co-founder of TouchStone Partners, remain optimistic. She describes Vietnam’s startup ecosystem as one with “enormous potential,” praising its resilience, practical mindset, and creative agility.
Yet, challenges persist. Chief among them is access to capital. Most Vietnamese startups depend heavily on external funding, whether from angel investors or venture capital. However, raising funds remains an uphill battle—especially in the early stages.
For many, early backing often comes from family or friends, as institutional funding remains difficult to access. Bank loans typically require collateral, something most entrepreneurs lack. Government funding, while theoretically available, is often entangled in complex procedures and disbursed in limited amounts.
Resolution 68: Lifting the barriers
Resolution 68 provides a strategic policy framework designed to unlock the potential of Vietnam’s private sector—especially startups operating in high-tech and innovation-driven sectors. It explicitly calls for the development of legal frameworks to support emerging business models and technology-based platforms, including fintech, artificial intelligence, virtual assets, cryptocurrencies, and e-commerce.
One of the most encouraging aspects of the resolution is its emphasis on regulatory reform. By creating legal clarity for new economic models, startups will no longer face excessive red tape when introducing novel business concepts. The resolution also supports experimental policy mechanisms—such as regulatory sandboxes—that allow for controlled testing of new technologies and business models.
This sandbox approach is particularly critical for startups. It enables them to test and iterate their innovations without immediately being subject to the full weight of regulatory compliance. This not only lowers costs but also accelerates time-to-market, providing more breathing room for creativity and risk-taking in areas like artificial intelligence, blockchain, and financial technology.
Moreover, Resolution 68 introduces groundbreaking tax incentives. It proposes corporate income tax exemptions or reductions for innovative startups, venture capital fund managers, and intermediary organizations supporting innovation. Individuals and organizations transferring capital or investment rights into innovative startups will also be eligible for income tax exemptions.
The resolution goes even further, recommending personal income tax breaks for scientists and specialists working in startups, R&D centers, innovation hubs, and intermediary organizations that support entrepreneurship. These measures are expected to ease the dual burden of funding and talent acquisition, two of the biggest hurdles for any young startup.
Addressing the capital crunch
Beyond tax relief, Resolution 68 sets forth bold new directions for improving access to finance. It proposes prioritizing a portion of commercial credit for private enterprises—particularly small and medium-sized businesses, startups, and firms involved in supporting industries or sustainable technology.
The resolution encourages financial institutions to offer loans based on the viability of a business model or its potential for market expansion, rather than relying solely on physical collateral. Lenders are urged to consider cash flows, intellectual property, and assets formed in the future when evaluating creditworthiness. Unsecured lending, often elusive in Vietnam’s traditional banking system, is now being actively encouraged—especially for promising ventures in innovation and green technology.
This shift in financing philosophy is designed to reduce the structural bias that often excludes high-potential startups from mainstream funding. It opens the door for broader financial inclusion, especially for entrepreneurs from nontraditional backgrounds or underserved regions.
A new era for innovation
At its core, Resolution 68 reflects a broader change in how the Vietnamese state perceives and engages with the private sector. By explicitly acknowledging innovation-led startups as key engines of economic transformation, the government is signaling not just policy adjustments, but a fundamental evolution in development strategy.
What’s clear is that the startup ecosystem is no longer viewed as a fringe component of the economy—it’s increasingly recognized as a primary force in driving productivity, job creation, and global competitiveness. By lowering institutional barriers, incentivizing bold experimentation, and mobilizing financial support, Resolution 68 paves the way for a more dynamic, inclusive, and forward-looking economy.
As Vietnam navigates the next stage of development, the hope is that these reforms will not only encourage a new wave of homegrown innovation but also attract greater international interest. The resilience of Vietnam’s startup scene during tough global conditions has already earned it credibility. With the right policies now in place, that credibility could soon translate into leadership.
If effectively implemented, Resolution 68 could mark the beginning of a golden era for Vietnamese entrepreneurship—one where creativity is rewarded, risk-taking is protected, and ambition is matched by opportunity.
