In Southeast Asia, the country places third, behind Singapore and Malaysia, while ranking ahead of Indonesia and Thailand.

According to the report, Vietnam scored 57.133 points, with notable strengths including pro-business policy incentives, competitive living costs and a sizable domestic market.

In the pillar measuring incentives for businesses, Vietnam earned 67 points, placing 21st worldwide, reflecting a relatively supportive policy environment for startups and innovation-driven enterprises.

The Innovation Business Environment Index (IBEI) evaluates economies based on three key pillars: ease of operating a business, incentives for companies, and market perception toward innovation. Vietnam’s performance in the other two pillars ranks between 70th and 80th globally.

StartupBlink notes that Vietnam is among the most business-friendly environments in the region, particularly for its policy “reward and penalty” mechanisms, which place the country 7th worldwide in this category, on par with India and Azerbaijan. In addition, Vietnam’s cost of living and market size both fall within the top 25% globally in the ranking.

The report also highlights Vietnam’s ongoing efforts to improve regulations related to science, technology and innovation, including clearer frameworks for research management, technology transfer and the commercialisation of intellectual property. Several localities have established innovation centres and special incentives for high-value technology activities, adding further layers of support to the country’s innovation ecosystem.

However, StartupBlink suggests that Vietnam still needs to strengthen its business environment and international positioning to become a preferred regional headquarters location for major global corporations, which could further boost investment and innovation capacity.

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