Da Nang, Vietnam, is set to become a focal point for innovation and technology with the announcement of a new project aimed at establishing a shared working space for startups. The "Da Nang Innovation Space" will occupy an area of nearly 1,900 square meters, boasting a total investment of over 489 billion VND (approximately 20.5 million USD) sourced from the city’s budget. This ambitious project is scheduled to be implemented from 2025 to 2028 and will feature a new 15-story building, two underground levels, a technical floor, and integrated infrastructure and equipment.
According to local authorities, the Da Nang Innovation Space is designed to serve as a hub for innovative startups, attracting entrepreneurial talent and nurturing technology groups. As Da Nang strives to position itself as a national center for science, technology, innovation, and digital transformation, the city is also planning to allocate around 3,500 billion VND, which represents 6-7% of its public investment capital for the 2026-2030 period, specifically for projects aimed at developing science and technology.
In line with its goals, Da Nang is implementing seven special policies under National Assembly Resolution No. 136 to advance science, technology, innovation, and digital transformation. The local People's Council's Resolution 56/2024/NQ-HĐND also supports the objectives outlined in the Politburo's Resolution 57-NQ/TW, which focuses on breakthroughs in these sectors.
Currently, Da Nang is home to approximately 41,000 businesses and branches, yet the existing co-working spaces can only accommodate around 800 to 900 workers. This limited capacity is insufficient given the rapid growth of the startup ecosystem in the city. The co-working spaces in Da Nang have not been operating efficiently, with each space functioning as a separate community, which has limited diversity and interaction among startups.
In addition to enhancing infrastructure, Da Nang is also focusing on attracting high-quality human resources, particularly Vietnamese professionals from abroad, to work in key technology sectors such as information technology, semiconductor manufacturing, artificial intelligence, and biotechnology. The city aims not only to be a center for research and design but also to become a production and export hub for high-tech products like semiconductor microchips.
Meanwhile, the broader landscape for investment in Vietnam is also evolving. A recent report titled "Vietnam Innovation and Private Equity Investment Outlook 2025," co-authored by the Vietnam Private Capital Investment Development Organization (VPCA), the National Innovation Center (NIC), and Boston Consulting Group (BCG), highlights Vietnam's readiness to attract investments and lead in new generation technologies, particularly in artificial intelligence (AI), AgriTech, and GreenTech.
Vietnam is emerging as a leading hub for AI startups in Southeast Asia, with the economy projected to gain up to 120 billion USD from AI by 2040. The growth of AI startups in Vietnam has been significant, with investment in this sector skyrocketing from 10 million USD in 2023 to 80 million USD in 2024, marking an eightfold increase. This growth underscores the increasing momentum of AI as it expands into various sectors, including finance, healthcare, and e-commerce, driving smarter decision-making and operational efficiency.
In addition to AI, investment in AgriTech has also surged, increasing ninefold from 8 million USD in 2023 to 74 million USD in 2024. This reflects a strategic allocation of resources towards technology-based solutions, particularly in precision agriculture, supply chain digitization, and sustainable agricultural business models. As Vietnam's AgriTech landscape develops, funding is increasingly directed towards high-growth startups that can enhance efficiency, resilience, and sustainability across the sector.
GreenTech has also seen a notable rise in investor interest, with transaction activity in 2024 significantly increasing. Although total investment in GreenTech remains relatively stable, the number of deals surged from four to ten, driven by favorable regulations, growing ESG adoption, and rising demand for clean energy solutions.
Despite a 35% decrease in the total value of private equity, the investment landscape remains active, with nearly 150 venture capital funds operating in Vietnam in 2024, primarily from Singapore, Japan, and Vietnam. Notably, deals under 500,000 USD increased by 73%, indicating the resilience of the startup ecosystem. Moreover, buyout deals accounted for 1.7 billion USD in private equity activity, reflecting a trend towards investing in stable, cash-generating assets.
The Vietnamese government is executing an ambitious economic transformation roadmap, focusing on the digital economy, green economy, and high technology, as outlined in the National Master Plan 2021-2030 and Resolution No. 57. This includes large-scale infrastructure investments, with nearly 500 billion USD in foreign direct investment (FDI) being deployed, including strategic projects from major companies like Samsung, Intel, Lego, and Foxconn.
As Vietnam evolves from a potential market into a strategic player in the global supply chain, the country is poised for significant growth. "Vietnam has transformed from a potential market to a nation ready to leap forward," said Le Hoang Uyen Vy, President of VPCA and CEO of Do Ventures. "This is the decade that will shape Vietnam's future. Amid global uncertainties, Vietnam is emerging as a destination for sustainable growth and innovative policies. The capital is ready. The time is now," she emphasized.
Ben Sheridan, Global Director of Financial Investment at BCG, noted that investors who understand Vietnam's macroeconomic specifics and have a long-term vision will have the opportunity to shape the next wave of growth in Southeast Asia. "We are entering the golden age of private capital in Vietnam," Sheridan remarked. With both Da Nang and the broader Vietnamese economy gearing up for a technological and innovative transformation, the future looks promising for startups and investors alike.
