Vietnam’s Startup Ecosystem: Learning from the US Model
Vietnam can look to the US model to build its own ecosystem to serve as a foundation for startups, according to Tran Luong Son, who heads the “Steps for Success Entrepreneurship” program at SUNY Cobleskill.
SUNY Cobleskill’s “Steps for Success Entrepreneurship” program began in 2023. (Photo courtesy of Tran Luong Son)
In a recent interview, Son discussed the similarities and differences in entrepreneurship training and incubation activities between the US and Vietnam. He highlighted key aspects of support structures vital for fostering innovation.
US Approach to Startup Incubation Training
Son explained that entrepreneurship encompasses both non-tech startups (restaurants, food businesses) and tech startups (technology-based products and services). Both types of startups need a foundational understanding of entrepreneurship. Startup support centers in the US, such as those in Silicon Valley, Texas, and major universities like MIT, Stanford, and Harvard, offer programs designed to meet these needs.
While MIT, Stanford, and Harvard emphasize academic knowledge – business plans, marketing, sales, and human resources – non-academic centers like Silicon Valley and Texas focus on innovation-driven business models and commercialization strategies.
Adapting US Practices in Vietnam
Son noted that Vietnam, with its unique cultural and business environment, can adapt successful US practices. Over the past decade, US universities have prioritized entrepreneurship education and student startup support, exemplified by programs like SUNY Cobleskill’s.
He shared his experience at SUNY Cobleskill and as an entrepreneurship advisor at the University of Maryland. At the University of Maryland, the federal government supports projects that commercialize research findings, connecting professors and PhD students with business leaders.
These ventures often target institutions with high demand for breakthrough technologies, such as the Department of Defense and NASA.
Challenges and Opportunities in Vietnam
Son observed that Vietnam offers both types of entrepreneurship training, akin to the US, but faces certain limitations. Many Vietnamese universities and support centers struggle with program orientations, and even successful entrepreneurs invited to lecture may lack broad business management knowledge. This can lead to less effective knowledge transfer.
Son believes entrepreneurship education in Vietnam should integrate fundamental business knowledge from academic sources with practical business experience.
Funding and Support
Regarding state funding for startups, Son suggests Vietnam could take a closer look at the US model. He advocates for a balanced investment in both startup support centers and the startups themselves, supported by state grants.
Overcoming Difficulties and Reaching International Markets
Son emphasized that while specialized knowledge is crucial, basic business knowledge, entrepreneurship skills, and execution capacity are the most important factors. He noted that Vietnam’s startup ecosystem needs to better support innovative ideas and teams, and that Vietnamese tech startups lack advantages to penetrate the global market. He says Vietnamese technology needs significant improvement to compete globally.
To reach international markets, Vietnamese tech startups should begin by identifying and solving real market problems and creating new customer value. Monitoring market trends and understanding global offerings is essential to creating innovations. To succeed, startups must establish a strong presence in their domestic market, leveraging the significant market opportunity offered by Vietnam’s 100 million population.
Son’s experience with VietSoftware, founded in 2000, taught him the importance of building an international business from the start.
