Science and technology sector revenue tops $206 billion in 2025
Vietnam’s science and technology sector achieved a historic milestone in 2025, generating more than VND 5.4 quadrillion (equivalent to $206 billion) in total revenue. This marks a 25% year-on-year increase and exceeded the annual target by 22%, highlighting the sector's accelerating momentum. The economic contribution of science and technology reached approximately VND 1.44 quadrillion ($54.7 billion), accounting for a 35% increase compared to 2024 and affirming its growing role in the national GDP.
On the global stage, Vietnam ranked 44th out of 139 economies in the Global Innovation Index (GII) and 55th in the Startup Ecosystem Index for 2025. Domestically, the startup ecosystem has grown robustly, now supporting around 4,000 startups, including two technology unicorns and dozens of firms on the verge of reaching unicorn status.
The country’s infrastructure and telecommunications sectors also reported significant growth: postal services brought in an estimated VND 87 trillion ($3.3 billion), up 20% year-on-year, while telecommunications revenue rose 8% to VND 176.56 trillion ($6.7 billion). Meanwhile, Vietnam's internet speed improved significantly, placing the country among the regional leaders and within the global top 10-15.
The digital economy remains a standout pillar, with estimated revenue reaching $198 billion in 2025. Over 80,000 enterprises are now operating in Vietnam’s digital technology sector, and more than 2,100 of them have expanded their operations internationally, underscoring Vietnam’s growing digital footprint on the global stage.
The 2025 results demonstrate that science, technology, and digital transformation have become core engines of Vietnam's economic growth. The data reveals a structural shift: science and technology are now pillars of the economy, validating years of policy focus and infrastructure investment. The next challenge is moving from quantity to quality. If Vietnam can translate scale into globally competitive companies, deeper R&D, and credible exits, supported by strong governance and talent development, the country can emerge as a serious regional technology powerhouse.
Which innovation model will reshape the startup landscape in Vietnam?
Vietnam’s startup ecosystem faces a common paradox: vibrant activity but limited value creation. Traditional support systems such as incubators and coworking spaces have not been able to bridge the gap between ideas and commercialization. Many projects fail to generate revenue due to a lack of solid market foundations.
In response, CT Group has introduced the CT Innovation Hub 4.0 Model, a next-generation approach that goes beyond offering physical space. It builds what is called a “creative economic system,” treating innovation as a distinct economic sector where all activities are directly linked to market demand.
One of the model’s key features is acting as a “shared R&D center” for enterprises, especially SMEs that may not have resources for internal research. Businesses can place specific R&D requests, receive rapid solutions, and reduce their research and development costs significantly. This not only supports innovation but also encourages collaboration across sectors.
The model also offers practical scalability through franchising. It has already been implemented in Ho Chi Minh City (HCMC), while Hanoi has become the first franchise customer, indicating an early sign of potential expansion into a nationwide innovation network.
HCMC, with its large economic scale and diverse enterprise system, is seen as the ideal strategic hub to maximize the model’s impact and establish the city as a regional startup center.
This article diagnoses Vietnam's startup paradox: vibrant activity but weak value creation. The shift from idea-centric to market-driven innovation is necessary as Vietnam matures economically.
The key insight: treat innovation as an economic sector, not a social movement. Models connecting enterprise demand, technology, capital, and commercialization produce sustainable startups and competitiveness. With discipline and transparency, Vietnam can move from "many startups" to companies that last and matter.
DKSH to Acquire Vietnamese Healthcare Distributor Biomedic
On December 24, 2025, DKSH Technology announced a definitive agreement to acquire Biomedic, a prominent Vietnamese distributor specializing in advanced medical testing and diagnostic solutions. The transaction is expected to close in the first quarter of 2026, pending standard regulatory conditions.
Biomedic, founded in 2008 in Hanoi, operates with over 80 employees across three locations. The company generates approximately USD 15.25 million in annual net sales with strong profitability. It serves a broad client base that includes hospitals, testing centers, and fertility clinics, and maintains long-term partnerships with global biotech blue-chip companies. Biomedic follows an equipment placement combined with recurring consumables model, which helps ensure stable revenue over time.
For DKSH, the acquisition provides deep local market access in Vietnam, along with scientific workflow expertise and established relationships with key players in the healthcare ecosystem such as hospitals, testing centers, and fertility clinics. These advantages align well with DKSH’s regional growth strategy in Asia.
DKSH's acquisition of Biomedic capitalizes on Vietnam's modernizing healthcare infrastructure. The deal reflects consolidation in Vietnam's medical distribution market. By combining Biomedic's technical specialists with DKSH's regional network, the group is positioned to dominate sophisticated diagnostic segments - a critical area where Vietnam imports over 90% of its devices. From an ecosystem perspective, the acquisition sends a strong signal: Vietnam can produce healthcare companies that are acquisition-ready for global strategies.
Da Nang implements synchronous solutions to support startups
In 2025, Da Nang made significant strides in strengthening its startup ecosystem, with its global ranking climbing 130 places to 766th. The city was recognized as one of Vietnam’s top 10 exemplary localities for developing innovation startup ecosystems at Techfest Vietnam 2025. Currently, Da Nang is home to over 200 startups, supported by a network of 55 incubators and various shared workspaces and investment funds.
This progress is driven by three strategic breakthrough pillars.
- First, in terms of infrastructure and smart governance, the city is prioritizing the development of 5G, Big Data, and AI. It is also finalizing an innovation startup space backed by nearly 500 billion VND in investment.
- Second, Da Nang is implementing a “sandbox” model under the institutional innovation and digital economy pillar, which allows for controlled technology testing, particularly in high-tech sectors such as semiconductors.
- Third, the city is focusing on capital and market development through the operation of a municipal Venture Capital Fund and a co-investment mechanism between the city and private investment funds.
Da Nang is also shifting its approach to scientific research with a newly introduced “business-centric” model. Instead of conducting research based solely on institutional planning, research activities will now be driven by specific orders from businesses, with financial support coming from the city’s budget. This change marks a shift from Da Nang acting as a policy manager to becoming the "largest customer" for local technological solutions.
To further support startups, the city is implementing specific support policies under Resolution 136. These include tax exemptions, non-refundable grants, and infrastructure support tailored for AI and semiconductor startups.
Da Nang is shifting from startup support to ecosystem engineering, coordinating policy, capital, infrastructure, and market access. By combining sandbox experimentation, public co-investment, enterprise-led R&D, and deep-tech focus (AI, semiconductors), the city aims to become a regional innovation hub. Success depends on execution: fast capital deployment, reduced friction, and converting experiments into scalable companies. If achieved, Da Nang could become a blueprint for second-tier Vietnamese innovation cities, offering startups a focused, livable, policy-friendly alternative to Ho Chi Minh City and Hanoi.
Ho Chi Minh City to launch venture capital fund to boost innovation ecosystem
Ho Chi Minh City is preparing to officially launch a city-backed Venture Capital Fund in the first quarter of 2026, marking a significant structural upgrade in Vietnam’s startup ecosystem. This initiative aims to unlock new sources of capital and build a stronger, more resilient market for startups and innovation-driven enterprises.
As part of this effort, the city has announced a substantial public investment plan. In 2026 alone, nearly VND 13 trillion (roughly 4.2% of the city’s total budget) will be allocated to science and technology. This signals not only long-term policy commitment but also the scale of HCMC’s ambition to become a regional innovation powerhouse.
The new innovation strategy is built around three key breakthroughs.
- First, the city will focus on digital infrastructure and smart governance, emphasizing technologies like 5G, data, artificial intelligence (AI), and real-time operations.
- Second, institutional frameworks and innovation spaces will be strengthened through fintech, blockchain, and regulatory sandbox initiatives.
- Third, capital mobilization and market creation will be supported, including the development of venture capital and M&A pathways to help startups grow and scale.
A notable shift in policy sees the government assuming the role of “lead customer.” Instead of functioning solely as a regulator, the city will place real demand orders for startups and tech firms based on 22 identified major problem statements. This approach is designed to bridge the gap between pilot-stage projects and large-scale commercial deployment.
HCMC’s innovation ecosystem is already deep and well-established. The city currently hosts around 2,000 startups, supported by 55 incubators and home to three tech unicorns. It ranks among the top five startup ecosystems in ASEAN, reinforcing its central role in Vietnam’s innovation landscape.
This move marks a structural upgrade of Vietnam’s startup ecosystem. By combining public capital, clear demand signals, and institutional reform, HCMC is not just “supporting startups” but engineering a functioning innovation market. The success of the VC fund will hinge on professional governance, private–public co-investment discipline, and strong links to exits (M&A, IPO). If executed well, this could materially improve early-stage financing quality, founder confidence, and long-term capital formation in Vietnam.