The resources of the diaspora, a key engine of the start

The resources of the diaspora, a driving force for the startup ecosystem in Vietnam

With over six million Vietnamese residing and working in more than 130 countries and territories, the Vietnamese community abroad is increasingly asserting its role as a strategic resource for national socio-economic development.

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The diaspora not only provides substantial and stable financial contributions through remittances, but also brings knowledge, technologies, governance expertise, and a vast network of international connections – essential assets for the startup and innovation ecosystem.

Over the past decade, total remittances to Vietnam have exceeded $190 billion, ranking the country in the top 10 globally among recipients of remittances. Ho Chi Minh City remains the main destination for these flows, accounting for about 60% of the national total, with an annual volume ranging between $9 and $10 billion. This resource is an important supplement to capital mobilized for investment and development, especially as Vietnam transitions its growth model towards innovation, science, and technology.

To this day, Vietnam has a relatively complete entrepreneurial ecosystem, including startups, investment funds, innovation centers, and public support programs. Its main strengths include a large market, a young and dynamic population, and a strong entrepreneurial spirit. The government has identified science, technology, and digital transformation as strategic pillars for development in the new phase of growth.

However, compared to more mature ecosystems in the region, Vietnam’s ecosystem still has some gaps. These include a lack of growth capital for expansion and internationalization phases, a governance and risk management system that does not fully meet international standards, and insufficient coordination between universities, businesses, investment funds, and public authorities. In this context, the resources of the diaspora appear as a crucial lever to fill these gaps.

In practice, the potential of the Vietnamese community abroad has not been fully tapped. Obstacles remain, such as residency and identity recognition procedures, complex and insufficiently interconnected investment processes, and a lack of access to clear and harmonized legal information. These factors can hinder investment and cooperation initiatives.

Aware of these challenges, the Vietnamese government has implemented several measures to more effectively mobilize the resources of the diaspora: long-term visa exemptions, expanded property ownership rights, facilitation of maintaining nationality or recognizing Vietnamese origin, and strengthening networking programs for Vietnamese intellectuals and entrepreneurs on a global scale to promote technology transfer and managerial know-how.

In Ho Chi Minh City, the startup ecosystem currently comprises approximately 2,000 companies active in sectors such as artificial intelligence, fintech, e-commerce, and high-tech agriculture. The metropolis aims to integrate the group of the world’s 100 most dynamic cities in terms of entrepreneurial innovation by 2030. A specific program to effectively leverage remittance flows until 2030 is being implemented, with a clear commitment to improving the business climate, transparency in resource mobilization and utilization, and protecting the legitimate rights and interests of investors, including the diaspora.

According to many Vietnamese experts and entrepreneurs living abroad, the sustainable attraction of diaspora resources requires a change in approach: shifting from a logic of occasional mobilization to a long-term public policy concept. This includes establishing a stable and transparent legal framework for cross-border investments, creating co-investment funds between the state and the diaspora, setting up a network of Vietnamese experts abroad as strategic advisors and technology transfer agents, and creating connection centers between Vietnamese innovation and international networks.

If the ecosystem is consolidated institutionally, managerially, and internationally, the Vietnamese community abroad can fully play its role as a strategic partner, actively contributing to making Vietnam an entrepreneurial, innovative, and deeply integrated nation in the global economy.

– Vietnamese News Agency (VNA) / Current Vietnam News (CVN)