Over the past three decades, Vietnam has transformed itself from being one of the least developed regions in the world into one with flourishing economy in Southeast Asia. The dynamic is even more apparent in Ho Chi Minh City. Previously known as Saigon, Ho Chi Minh City is a fast, young, and vibrant city in southern Vietnam with a population of approximately 9 million people (2021 updated). According to the latest City Momentum Index by the real estate services and investment management firm Jones Lang LaSalle (JLL), Ho Chi Minh City was at the third place among the world’s most dynamic cities.
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Thanks to the government’s effort in boosting the homegrown technology and innovation, as well as the emergence of a younger and talented generation, many local and foreign companies are now turning their heads towards this striving city.
As a result, a captivating startup culture is unfolding among both expats and Vietnamese natives, making Ho Chi Minh City one of the leading regions for startups globally.
This article elaborates the reasons Ho Chi Minh City is regarded as one of the best cities in the world for startups, and how you can go about kicking off a startup business in this throbbing city.
Ho Chi Minh City: the Best City for Startups
No wonder the city is among the best for startup companies because of the following reasons:
1. The city is incredibly young and energetic
Almost 70% of the population in Ho Chi Minh City is under 40 years old with a lot of young adults wanting to fulfill their entrepreneurial dreams. As a result, the culture is dynamic, open-minded and fast-paced, and ready to embrace changes and technological innovation.
2. Support from local government
Support from the local and national government of Vietnam has embraced and nurtured technological changes happening in the city. This has definitely created a remarkable momentum and has shaped the technological and startup landscape in Ho Chi Minh City.
In 2016, the Ho Chi Minh municipal authorities commenced the establishment of Saigon Silicon City at the High-tech Park in District 9 in order to attract both international and local hi-tech companies.
3. Low cost with a big pool of homegrown talents
Compared to many other cities in the world, Ho Chi Minh City is extremely affordable for startups with an optimized lifestyle. Therefore, if you want to jumpstart your startup, this is the perfect place to do so. Currently, there are plenty of entrepreneurs leveraging on the low cost the city provides to build and grow their startups.
In addition, Ho Chi Minh City has an advantage over other Southeast Asian cities with its young and strong local talents, such as a huge number of homegrown developers. The big pool of talents do not just happen overnight. There are plenty of funding and accelerator programs, frequent support networks and events in the city.
Prominent Startups in Ho Chi Minh City
Some of the prominent startups in Ho Chi Minh City that have shown no sign of stopping in growth are:
- Appota – a mobile platform provider in digital payments and game development
- Niftit – an IT solutions of various digital services
- GotIt – an education app
- Datdi – a travel and employment solutions provider
- Heart Digital Media (HDM) – an IT services provider
- TravelCa.sh – a finance app
Other popular startup businesses in the city include Chudu24, AhaMove, Finizz, TicketBox, bTaskee, Triip.me, Canavi, TMA Solution and VNG.
Establishing Your Start-up Business in Ho Chi Minh City
In the case for startups, most foreign entrepreneurs are more likely to opt for the 100% foreign-owned company. If you intend to establish a 100% foreign-invested enterprise in Vietnam, learn more about whether to establish an LLC or JSC when entering Vietnam.
Alternatively, talk to us now and we can further discuss business incorporation in Vietnam. Whether it is in Ho Chi Minh City or other parts of the country, we can assist you in registering your company.