HCM City (VNS/VNA) – Vietnam’s startup ecosystem could developstrongly over the next five years with venture capital and governmentassistance, Eddie Thai, general partner of the venture capital firm 500Startups Vietnam, said at a Startup Viet Summit held on December 2 in HCM City.

The startup ecosystem would grow like “a dense forest” from its “desert”origins in 2013 when venture capital was under 50 million USD and thegovernment offered little assistance, Thai said.

At that time, many foreign investors had yet to pay much attention toVietnamese startups.

“The ecosystem’s sprout” started in 2016 with a boom in the consumption market,attracting foreign investment. Also, the government began to build a 'startupnation'," Thai said.

Venture capital for startups has increased to more than 500 million USD in thecountry, according to Thai.

By 2025, Vietnam’s Internet economy could exceed 40 billion USD, leading tomore startups in e-commerce, financial technologies and other fields.

The country could become a hub of innovation for the developing world, Thaisaid, adding that other fields could also be ripe for startups.

Le Huynh Kim Ngan, founder and CEO of Twenty.vn, who is known as a tech startupcommunity builder since 2010, said that Vietnamese startups should focus onrapid growth, a business market fit, and non-stop innovation to become unicorns- startups with value of more than one billion dollars.

Ngan has worked for 10 years with more than 1,000 startups and conductedresearch on many startups in Southeast Asia.

Unicorn startups often have a good founder who has a flexible mindset and isready to change and adapt for investors, according to Ngan.

Timing is very important for startups, who should know when their product andbusiness should be introduced in the market.

They also should take part in startup events in the region and the rest of theworld to learn about markets.

Most startups in Vietnam have two or three co-founders. Ngan said that thechief technology officer would be as important as the CEO.

Ngo Hoang Gia Khanh, vice president of corporate development at e-commerceplatform Tiki, said that startups should have good products and services, andpay attention to hiring talented staff.

Nguyen Thanh Nam, chairman of Endeavor Vietnam, which is part of EndeavorGlobal’s network that mentors high-impact entrepreneurs, said that startupsmust develop their human resources and manage them effectively.

Nam said that he did not need to go abroad to learn about human resourcesmanagement. Instead, he went to Bat Trang Ceramics Village in the outskirts ofHanoi, which has thousands of workers, to learn about good management at lowcosts./.