Initiative for Startup Ecosystem in Vietnam (ISEV)

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National government program coordinating comprehensive startup ecosystem development through policy framework, institutional support, and direct funding to foster innovative enterprise creation and growth.
What are the main aims and objectives?

The primary objectives of ISEV are to create a favorable environment to promote the formation and growth of startups; to establish and perfect a legal framework supporting innovative startups; to develop a national startup support portal; and to build comprehensive startup ecosystem infrastructure across the country.

ISEV aims to support 2,000 startup projects by 2025, with 600 developing into startup firms and 100 securing investment from venture capitalists through equity deals or acquisitions, with estimated total investment value of 2,000 billion VND (approximately US$86.8 million); to provide institutional support through incubators, accelerators, and service providers; to develop legal frameworks and policies supporting innovative startups; to facilitate training and capacity building for ecosystem stakeholders (entrepreneurs, advisors, coaches, mentors, officials); to establish networks connecting angels investors, venture capitalists, incubators, accelerators, young scientists, and entrepreneurs; to connect Vietnam's startup ecosystem with regional and global networks and markets; to provide direct funding and support for startup projects and enterprises; to communicate and raise awareness about startup activities; and to research and develop policy frameworks addressing emerging entrepreneurship needs.

How does the program work?

ISEV operates through multiple coordinated mechanisms combining long-term policy research with direct annual support activities:

Governance and Administration Structure:

The program is led by the Ministry of Science and Technology (MOST), which hosts the Office of ISEV and coordinates implementation across multiple government entities including the National Agency for Technology Entrepreneurship and Commercialization Development (NATEC), the Office of National Programmes on Science and Technology (ONPOST), and Vietnamese science and technology representatives in foreign countries.

Two-Track Implementation Approach:

ISEV operates through two complementary tracks: (1) Science and Technology Mission conducting long-term policy research, legislative development, and mechanism design; (2) Annual Mission providing direct support to the ecosystem through six categories of tasks.

Direct Support Activities (Annual Mission):

The program coordinates six major groups of activities:

  • Capacity Building: Training for entrepreneurs, advisors, coaches, mentors, government officials, and students in entrepreneurship
  • Incubation and Acceleration: Funding and support for incubators, accelerators, and service providers offering direct support to startups
  • Network Development: Formation and strengthening of angel investor networks, venture capital networks, incubators, accelerators, and entrepreneur networks
  • Regional and Global Connection: Establishing partnerships linking Vietnam's startup ecosystem with regional (ASEAN) and global networks
  • Direct Support Services: Service provision including media coverage, human resources training, mentoring, and business promotion
  • Research and Policy Development: Ongoing research into startup ecosystem needs and policy recommendations

National Startup Portal:

ISEV launched a National Startup Portal providing centralized access to legal guidance, patent information, networking opportunities, and startup ecosystem resources, attracting nearly 2 million website visits and cataloging 1,500 ecosystem-related data entries.

Intermediary Organization Support Model:

The Program Executive Board provides funding to intermediary organizations (incubators, accelerators, service providers) that meet selection criteria, which then deploy support directly to startups through incubation, acceleration, mentoring, and networking services.

National Startup Ecosystem Map:

ISEV developed and regularly updates a comprehensive Map of National Innovative Startup Ecosystem identifying outstanding startups and mapping five key ecosystem sectors: talent, capital, support, service, and network.

What is the overall cost?

No information available. 

How was it implemented?

The creation of ISEV emerged from Vietnam's recognition in the mid-2010s that economic diversification beyond manufacturing and traditional industries required deliberate investment in high-tech entrepreneurship and innovation capacity. By 2016, Vietnam had approximately 1,800 active startups, but government identified need for systematic, coordinated national support infrastructure rather than fragmented local initiatives.

Prime Minister Decision No. 844/QĐ-TTg, issued on May 18, 2016, formally established the "Initiative for Startup Ecosystem in Vietnam until 2025" (ISEV), commonly referred to as "National Program 844." The decision assigned implementation leadership to the Ministry of Science and Technology, establishing clear institutional responsibility and coordinating government-wide commitment.

In 2021, under Prime Minister Decision No. 188/QĐ-TTg, ISEV was expanded and updated to enhance international integration, leverage overseas Vietnamese intellectual resources, and develop national startup support networks more comprehensively. This expansion reflected recognition that startup ecosystem success required both domestic and international engagement.

Following official launch, ISEV systematically developed institutional infrastructure including establishment of the ISEV Office within MOST, development of National Startup Portal (launched approximately 2018), creation of National Startup Ecosystem Map (first edition 2021), and establishment of innovation hubs in major cities including Hanoi, Da Nang, and Ho Chi Minh City.

ISEV coordinated development of comprehensive legal framework supporting startups including Law on Supporting Small and Medium Enterprises, multiple decrees (Decree 38/2018, 39/2018, 80/2021, 31/2021), Law on Investment 2020, Law on Bidding 2024, Law on Technology Transfer with supporting decrees, and policies integrating entrepreneurship into higher education regulations.

Timeline

May 18, 2016: The Initiative for Startup Ecosystem in Vietnam (ISEV) was approved by the Prime Minister via Decision 844.

What impact has been measured?

Direct outcomes attributed to ISEV support include:

  • Startup projects supported: Approximately 2,000 startup projects assisted
  • Enterprises created: Approximately 800 enterprises established with program support
  • Venture deals: 100 enterprises secured venture capital or acquisition deals valued at approximately 1,800 billion VND (US$77.6 million)
  • Program target achievement: Approximately 90% of 2025 program targets achieved as of 2024
What lessons can be learned?
  • Comprehensive policy framework precedes successful ecosystem development: ISEV's coordinated development of legal framework (including laws, decrees, regulations) alongside direct support services demonstrates that startup ecosystems require systematic policy infrastructure development, not just direct funding or mentoring services.
  • Government coordination across ministries amplifies ecosystem effectiveness: ISEV's structure requiring coordination among Ministry of Science and Technology, other ministries, government branches, localities, and socio-political organizations demonstrates that successful startup ecosystems require whole-of-government commitment and coordination.
  • National portal and centralized information reduce information barriers: The ISEV National Startup Portal attracting nearly 2 million website visits demonstrates that centralized information access reduces entrepreneur search costs and enables better resource utilization.
  • Two-track approach balances short-term support with long-term policy development: ISEV's dual structure (long-term science and technology mission for policy research plus annual missions for direct support) demonstrates that successful ecosystem development requires both immediate responsiveness and sustained long-term strategic development.
  • Intermediary organization support leverages existing infrastructure: ISEV's funding of private and public intermediaries (incubators, accelerators, service providers) rather than creating parallel government agencies demonstrates that supporting existing ecosystem actors is more efficient than parallel government program delivery.
  • Later-stage funding gaps remain significant constraint: Despite ISEV achievements, research identifies that startups struggle to access Series C and later-stage funding (US$50 million+), suggesting that early-stage support alone is insufficient without complementary later-stage capital access mechanisms.
  • International integration strengthens competitiveness: ISEV's expansion to include regional and global networking demonstrates recognition that startup success requires international capital access, mentoring, and market opportunities beyond domestic market.
  • University engagement broadens entrepreneurship pipeline: ISEV's integration of approximately 170 universities and colleges in entrepreneurship activities demonstrates that leveraging academic institutions builds entrepreneurial talent pipeline and research commercialization.
  • Rapid ecosystem growth creates scaling challenges: Vietnam's growth from 1,800 startups (2016) to 4,000+ (2024) suggests that rapid growth creates management challenges for support infrastructure, suggesting need for proportional scaling of intermediary capacity.
  • Lesson on ambitious yet achievable targets: ISEV's 2025 targets (2,000 projects supported, 600 firms created, 100 investment deals) have been approximately 90% achieved by 2024, suggesting that ambitious but realistic targets drive sustained effort and accountability.

CURATED BY

Pham Dung Nam

Managing Director
Initiative for Startup Ecosystem in Vietnam
Vietnam