Hanoi currently has about 1,000 innovative startups, accounting for 26.32% of the country's total [of 3,800], according to Ngo Minh Toan, director of the Hanoi Business Support Center.

"From 2019 to 2022, about 14 domestic venture capital funds were established in Hanoi. Since 2016, innovative startups in the city have raised US$999.52 million, with 99 successful capital calls. The capital is an ideal location for education, e-commerce and financial startups," Toan said.

He added that Hanoi aims to complete the creative startup ecosystem by 2025. By 2030, the city will be the country's creative startup hub, and by 2045, it will be one of Asia's smart manufacturing and service centers, as well as a startup and innovation hub.

Hanoi sees entrepreneurship and creative start-ups as important drivers of the economy. Photo: VGP

 "To foster the growth of an innovative startup community, it is imperative to devise effective solutions that seamlessly connect entrepreneurship and innovation with knowledge, science, and technology, leveraging the potential and advantages of capital. The ultimate goal is to position Hanoi as a prominent national and regional hub for innovation and startups expeditiously. The city government is steadfast in its commitment to formulating and enhancing mechanisms and policies that will actively promote and cultivate the most conducive environment and conditions for the flourishing of innovative startups," emphasized Toan.

Many policies support innovative start-ups

The development of enterprises in Hanoi in recent years has reflected the fundamental changes in the capital's socio-economic development policy, which considers enterprises and the private sector as an important driving force of the national economy.

According to the Hanoi Department of Planning and Investment, in recent years the city has focused on completing mechanisms and policies to support and nurture businesses. In addition, administrative reform in parallel with the construction of e-government and modern public administration has contributed to creating a more favorable investment environment for business development. 

The Hanoi People's Committee has approved five projects related to innovative startups, the most notable of which in 2019 is titled "Supporting creative startups in Hanoi in the period 2019-2025" (Project 4889). Hanoi has also supported three incubators and startup spaces with a total budget of VND1 billion ($41,148).

As of the conclusion of 2022, Hanoi boasts an infrastructure of 16 innovation investment funds and 21 incubators and organizations dedicated to supporting startups. Notably, 16 enterprises have been awarded Science and Technology Enterprise Certificates, predominantly in the dynamic field of Information Technology (IT), recognizing their status as innovative startups.

The city government has prioritized the creation of optimal conditions and the allocation of resources for creative startup activities and local enterprises engaged in digital transformation. Moreover, the collaborative support from ministries and state corporations within the city has significantly contributed to the advancement of the capital's innovative startup ecosystem. Funding from the 2022 State budget for business-led projects surpassed VND10 billion ($411,480).