Strategies to fuel Vietnam’s climate tech startup landscape
Strategies to fuel Vietnam’s climate tech startup landscape
With a growing focus on sustainability and innovation, Vietnam’s climate tech sector is becoming a key component of its future growth. Juhern Kim, country representative to Vietnam of the Global Green Growth Institute, spoke with VIR’s Khanh Linh about the country’s proactive approach to harnessing the potential of this emerging market.
How do you assess the prospects of Vietnam’s climate tech startup ecosystem in 2025, considering the country’s net-zero economy goals?
Juhern Kim, country representative to Vietnam of the Global Green Growth Institute |
The prospects are promising, with strong growth potential and demand. Vietnam’s net-zero commitment by 2050 provides a robust foundation for the development of the climate tech ecosystem. The net-zero transition can open up enormous investment opportunities totalling $2.4 trillion by 2050, with an average annual investment of $46 billion over the next five years, according to a recent report by BloombergNEF.
These compelling opportunities extend beyond large-scale infrastructure projects to pillar sectors, where innovative, entrepreneur-driven solutions will play a crucial role in catalysing the net-zero transition.
What is your assessment of the investment potential for climate tech startups in Vietnam, and what strategies can be implemented to cultivate a favourable environment?
At the macro level, Vietnam’s potential in climate tech is immense. The country’s alignment with the global net-zero agenda signals opportunities for new areas of growth and reaffirms its proactive stance in the international community, making it highly attractive to investors.
However, at the micro level, there are critical areas that require attention. Firstly, technology transfer will be a key driver for the growth of the climate tech industry. While locally developed solutions are important, they alone will not be sufficient for Vietnam to meet the ambitious net-zero goals quickly enough. Developing and commercialising new tech takes time, making access to proven international technologies essential.
Secondly, for effective technology transfer, Vietnam needs to foster the creation of joint ventures that draw in global venture capital investments. To achieve this, the country can inspire confidence by ensuring regulatory transparency and simplifying processes for capital repatriation.
How effective are the current policies in supporting climate tech startups in Vietnam, and in what ways do international organisations like the Global Green Growth Institute (GGGI) contribute to strengthening this ecosystem?
The government has introduced several policies to support development. Key initiatives include the establishment of the National Innovation Centre (NIC) in 2019 and its expansion in Hoa Lac in 2023 collaborating with international tech companies to drive innovation, and the Ministry of Science and Technology’s startup programme, led by the National Startup Support Centre.
Resolutions on science, technology, innovation, digital transformation, and city grants aimed at supporting innovators in Ho Chi Minh City, along with TECHFEST Vietnam, the country’s flagship national innovation conference, have all played a vital role in fostering the creative startup ecosystem.
Supporting the government’s efforts, international development organisations, including the GGGI, along with multinational companies, have been providing technical and financial support to early-stage ventures, and a line-up of climate tech companies addressing critical climate challenges and driving innovation. However, there is an increasing need for tailored incentives targeting specific sectors and types of startups to enhance their immediate impact.
What actions from the government and businesses will be critical for advancing Vietnam’s climate tech startup ecosystem in 2025?
Climate tech encompasses companies and technologies that aim to reduce or reverse negative environmental impacts and help societies adapt to climate change. The country’s climate tech startup ecosystem, although it is currently at a nascent stage, is poised for significant expansion this year and onwards, driven by the strong policy signals, such as the establishment of the domestic carbon market, and pivotal events such as the P4G Hanoi Summit in April 2025, which will promote climate tech startups.
Vietnam’s appeal as a rising global investment destination is highlighted by recent developments. For instance, a few multinational tech giants have announced investment plans in AI research and data centres in Vietnam, signalling confidence in the country’s technological potential. This momentum can expand to climate tech, given AI’s rising role in climate actions via collaboration among the government, businesses, and investors.
The government can further streamline processes to reduce time-to-market for startups, establish innovation funds, and create fiscal incentives to attract international capital into Vietnamese climate tech ventures. Policies crafted to support joint ventures between Vietnamese startups and global firms can facilitate technology transfer and rapidly scale climate solutions. Businesses and especially large corporations can play a pivotal role by mentoring startups, providing pilot opportunities, and testing and integrating innovative solutions into their supply chains, fostering scalability and commercialisation of promising tech.
This support enables startups to scale their operations effectively and maximise their impact in addressing climate challenges.
What initiatives has the GGGI implemented in Vietnam to support climate tech startups in 2024, and what are the plans for further advancing development?
In 2024, the GGGI played a pivotal role in strengthening Vietnam’s climate tech ecosystem with the launch of an innovative energy efficiency-focused accelerator programme – the first of its kind in the country together with the Ministry of Trade and Industry and EU Delegation. This initiative has since supported 14 startups from Vietnam and neighbouring countries, and 13 youth teams, equipping them with essential skills in deal sourcing and investment readiness.
Building on this momentum, the GGGI has ambitious plans for 2025 and beyond to further catalyse the climate tech ecosystem. That includes expanding accelerator initiatives to target additional sectors such as agriculture, the circular economy, energy, and mobility with the Ministry of Planning and Investment and the Korea International Cooperation Agency, while functioning as a dedicated matchmaking platform to connect startups with venture capitalists and impact investors. This includes offering a comprehensive suite of support, including acceleration schemes, mentorship, business development support, grant funding, and investment mobilisation.
For example, the GGGI supported the Green Climate Fund and the Korea Development Bank in mobilising approximately $200 million climate funding specifically mandated for deployment to climate tech companies across Southeast Asia, including Vietnam, and we will support the sourcing and origination with the NIC.
