This study examines the expansion of venture capital (VC) markets to support startups and high-growth enterprises in Ho Chi Minh City (HCMC), Vietnam, through a comparative analysis with Sydney, Australia.
This study examines the expansion of venture capital (VC) markets to support startups and high-growth enterprises in Ho Chi Minh City (HCMC), Vietnam, through a comparative analysis with Sydney, Australia. While Vietnam’s entrepreneurial ecosystem has grown rapidly, particularly in consumer-driven digital sectors, it remains constrained by limited deal size, narrow sectoral concentration, and weak exit pathways. Drawing on S&P Capital IQ data (2010–2021) and official sources (2010–2024), the study evaluates market structure, investment activity, and policy frameworks to highlight structural gaps between HCMC and Sydney. The analysis shows that Sydney benefits from diversified VC flows, robust IPO and M&A markets, and deep institutional capital anchored by superannuation funds, while HCMC relies heavily on foreign investors and underdeveloped exit mechanisms. Using a mixed-methods approach, the paper integrates insights from finance and entrepreneurship literature with descriptive statistics to address four guiding questions: the role of VC in economic development, Vietnam’s current market position, comparative policy lessons, and effective reforms. Policy recommendations include strengthening tax incentives, modernising fund structures, mobilising domestic institutional capital, diversifying sectoral investment, and expanding exit pathways. The findings contribute to academic debates on VC and economic growth while offering actionable insights for policymakers and investors seeking to build a more sustainable and globally competitive startup ecosystem in Vietnam.
