Vietnam innovation opportunities

Why should I read this document?

Opportunities and tips for innovation and doing business in Vietnam

• Vietnam is one of the world’s fastest growing economies, as since 2000 the economy has been growing at 6.3% annually, on average. The country has introduced reforms towards a market economy, and underwent industrialisation since 1986. The population of Vietnam is fast-growing, reaching 96.8 mln. in 2018, and young, as almost 50% of people are under 30 years old.
• The agricultural sector is in need of innovation and value chain development. Since Vietnam suffers from effects of climate change and depletion of natural resources, it is a good moment to offer sustainable and innovative technological solutions to farmers.
• Over 55% of the population in Vietnam are internet users, therefore e-commerce has a large market potential. Currently, this sector is receiving increasing investment flows and it is estimated at over 4.4 bln. Euro. 
• The service sector is the main economic driver in Vietnam; tourism and telecommunications companies are major contributors to the sector’s growth and have a large business potential. For example, tourism grew by 29.7% in 2018 compared to 2017.
• Vietnam has a strong ICT industry. Ho Chi Minh City is hoping to become the Sillicon Valley of Asia. In addition, the Saigon Silicon City project (the 1.3 bln. Euro) offers a good ecosystem to start an ICT business venture, as in the past decade 14.000 IT startups have been launched there. Due to large cyber attacks in the country, there is a large demand in cybersecurity equipment and software.
• At the moment, a large number of local manufacturing companies are searching for technologies that improve mechanisation and automatisation in production.
• The quality of education in Vietnam is lower than in the EU, on average, and there is a high demand in education/training services for upskilling and reskilling of the local labour force in adjustment to economic modernisation.
• Few local companies perform R&D in Vietnam. Hence, innovative companies that produce high value-added goods or companies that trade those goods are very competitive in the market.
• Over 40 million Vietnamese citizens have emerged from living below the poverty-line in the past three decades, providing plenty of opportunities for meeting local consumption needs. Vietnamese consumers are attracted to discounts and small gifts. Currently, Western, safe and organic products, fashionable clothing and footwear, cosmetics and accessories are in high demand in the country.
• The government in Vietnam is dedicated to providing a good business environment. At the moment, the government is heavily investing in education, public infrastructure and is looking for foreign investments.