Youth unemployment escalation triggers spike in teen-led business ventures

In urban centres across Vietnam, particularly Ho Chi Minh City, stories of job losses have dominated social media discussions since the Lunar New Year. However, this turbulent employment landscape has not deterred the spirit of entrepreneurship in the country.

The current trends and challenges in Vietnamese entrepreneurship revolve around a burgeoning startup ecosystem, government support, and a young, tech-savvy workforce adapting to new economic realities.

**Boom in Startup Formation**

The first half of 2025 saw a record-breaking 91,000 new businesses established in Vietnam, with June alone witnessing a staggering 24,000 new enterprises – more than double the average. This surge indicates a strong wave of confidence in the country's economic recovery and growth prospects [2].

**Youth and Technology-Driven Innovation**

Vietnam's youthful population, with over 50% under 35 years old, produces more than 50,000 IT graduates annually. This tech-savvy workforce is increasingly involved in startups, especially in technology-driven fields, fostering innovation and global connectivity [1][3].

**Diversification Across Sectors**

Entrepreneurs are exploring various sectors beyond traditional industries, including sustainable agriculture, e-commerce, and green/circular economies. New business models leveraging digital transformation and artificial intelligence are also gaining traction [1][2].

**Global Talent Integration**

Vietnamese startups and global firms are tapping into Vietnam’s tech talent pool to address skill shortages, enabling around-the-clock productivity and fresh perspectives through remote work and international collaboration [3].

**Government Support and Policy Reform**

The Vietnamese government actively supports entrepreneurship through initiatives like the ‘Startup Vietnam Initiative,’ providing funding, mentorship, and streamlined regulations. Incentives include tax reductions and resources facilitated by entities like the Vietnam National Innovation Center (NIC). Continued efforts focus on simplifying business procedures and promoting sustainable business practices [1][2].

**Challenges Ahead**

While startup formation is booming, the challenge lies in ensuring long-term sustainability and growth amid increasing competition. Many new firms must innovate continuously to survive and scale.

Startups face challenges in hiring and retaining specialized skills, particularly in advanced tech and managerial roles. Integrating global teams also requires cultural alignment and effective management [3].

Regulatory complexities and bureaucratic procedures can impede rapid startup development and operational scaling [2]. Adapting to fast-changing technology trends, including AI and digital transformation, while aligning business models with sustainable and green economy goals, also presents challenges [1][2].

Experts caution that entrepreneurship remains challenging, emphasizing the importance of a realistic mindset, avoiding blindly following trends, continuous learning, and engaging with business communities.

In conclusion, entrepreneurship in Vietnam is a dynamic response to a challenging job market, leveraging youth, technology, and supportive policies. However, success will depend on overcoming sustainability, skill, and regulatory challenges to fully realize the country’s economic and innovation potential by 2025 and beyond [1][2][3].

The boom in startup formation across Vietnam, particularly in Ho Chi Minh City, continues to flourish with a record 91,000 new businesses established in the first half of 2025.
The strong wave of confidence in the country's economic recovery and growth prospects is evident, with June 2025 witnessing an unprecedented 24,000 new enterprises.
This surge in startups underscores the spirit of entrepreneurship that persists despite the turbulent job market in urban centres of Vietnam.
Vietnam's young population, accounting for over 50% under 35 years old, plays a significant role in the startup ecosystem, with more than 50,000 IT graduates produced annually.
The tech-savvy workforce is driving innovation and global connectivity through their involvement in IT-related startups and fields.
Entrepreneurs are boldly venturing beyond traditional industries, exploring sectors such as sustainable agriculture, e-commerce, and green/circular economies.
New business models, built upon digital transformation and artificial intelligence, are gaining traction in Vietnam's startup scene.
Global tech talents are being drawn to Vietnam's startup culture, bridging skill shortages and enhancing around-the-clock productivity through remote work and international collaboration.
The Vietnamese government actively fosters entrepreneurship through initiatives like the 'Startup Vietnam Initiative,' offering funding, mentorship, and favourable regulations.
The government's support includes tax reductions and resources facilitated by entities like the Vietnam National Innovation Center (NIC), with the aim of simplifying business procedures and promoting sustainable business practices.
While startups are thriving in Vietnam, the challenge lies in ensuring long-term sustainability and growth amid increasing competition.
Continuous innovation is essential for startups to survive and scale within the burgeoning market.
Hiring and retaining specialized skills, particularly in advanced tech and managerial roles, poses a significant challenge for startups.
Integrating global teams requires cultural alignment and effective management to create a cohesive work environment.
Regulatory complexities and bureaucratic procedures can hinder rapid startup development and operational scaling.
Adapting to fast-changing technology trends, including AI and digital transformation, while aligning business models with sustainable and green economy goals, presents hurdles for startups in Vietnam.
Experts urge startups to approach entrepreneurship with a realistic mindset, avoid blindly following trends, and prioritize continuous learning and engaging with business communities to overcome challenges.
The ongoing transformation of the Vietnamese startup scene is creating exciting opportunities in the food-and-drink, finance, fintech, real-estate, and data-and-cloud-computing industries.
Small businesses and entrepreneurship are redefining the local economy, contributing to development in sectors such as education-and-self-development, personal-growth, shopping, career-development, job-search, skills-training, sports, and arts.
Technology has made its mark in the sports industry in Vietnam, with the rise of sports-betting platforms, sports analysis, and mixed-martial-arts gyms.
Travellers and locals alike can witness the revitalization of old zones like Ho Chi Minh City's District 1, as tech-startups and small businesses reshape the urban landscape.
The spirit of entrepreneurship in Vietnam is not confined to just technology startups; budding pet stores, retail shops, car dealerships, and sports facilities continue to pop up amidst the city's vibrant atmosphere, demonstrating the diversity and resilience of the Vietnamese startup scene.