Three future megatrends: Where should the Vietnamese Innovation Ecosystem bet in the next 5 years?

The silver economy is approaching the trillion-dollar mark, AI is being localized for specific industries, and value chain alliances are enabling small and medium enterprises to compete fairly on the international stage. These three waves are no longer a distant future; they are reshaping the game right now.

The world's strongest innovation ecosystems do not chase every trend. Instead, they know exactly where to place their bets. For Vietnam, these are the three trends.

Episode 4 - the last episode of the series "Startups Growing by Solving Corporate Problems," part of the Business Insights #72 podcast by Vietsuccess and BambuUP, featuring insights from Ms. Nguyen Huong Quynh, CEO of BambuUP.

Innovation is not a race of quantity

Host: Amidst many supporting policies for innovation being implemented, what are the major trends that Vietnamese startups and businesses should prioritize in the next five years?

Ms. Nguyen Huong Quynh: Before discussing trends, I want to emphasize one point. The Government has identified several core technology areas to focus on, which is necessary. However, besides what is "needed," we must clearly identify which fields will help Vietnam stand out and move faster than the rest of the world.

There will always be sectors where no matter how much we invest, we remain in a state of perpetual catching up. Yet, there are also fields where Vietnam's unique advantages can help us transition from followers to leaders if we place our bets correctly.

I want to share three major trends that not only startups but also large enterprises and corporations should consider. When both sides look in the same direction, the speed of implementation will be much faster.

Trend 1: Horizontal development - New industries, new opportunities

Ms. Nguyen Huong Quynh: When I speak of "horizontal development," I am referring to a series of new industries emerging from global megatrends. These are structural changes that occur slowly but are irreversible.

One of the clearest megatrends directly impacting Vietnam is demographic change. Vietnam is among the countries with the fastest aging populations in the world.

We will soon transition from a young population structure to an aging one. This wave will open up a series of opportunities in products, services, and technologies serving the Silver Generation.

Vietnam ranks among the fastest-aging nations worldwide (Source: The Internet)

To provide a reference point, Japan has about 122 million people, only slightly more than Vietnam, yet their nursing care market alone generates about 80 billion US dollars annually. If we consider the entire Silver Generation market, including both products and services, that figure reaches nearly 1,000 billion US dollars.

What about Vietnam? We have almost nothing for this segment. This is a massive, untapped opportunity.

Beyond demographics, other megatrends are creating "white spaces" for businesses and startups to explore: urbanization, shifting consumer behavior toward health and sustainability, and especially climate change and food security.

These factors are opening significant opportunities for agritech, foodtech, and climatech, which are exactly the fields where Vietnam possesses unique geographical and ecological advantages.

The Mekong Delta is a prime example. This region possesses an incredibly rich agricultural ecosystem while also being heavily impacted by climate change. We do not need to go far to find a "living laboratory" for climate tech and foodtech; Vietnam has it right within its borders.

Vietnam has strong advantages for developing the food technology and climate technology sectors. (Source: The Internet)

Why not turn the Mekong Delta into a regional and global innovation hub for these specific sectors?

Trend 2: Vertical development - AI and industry-specific specialized technology

Host: And what about the second trend?

Ms. Nguyen Huong Quynh: I call the second trend vertical development. This is the area I find most exciting because it is the ideal intersection for cooperation between businesses and startups.

Vertical development means that instead of creating general technology solutions applicable to all industries, we dive deep into specific sectors to create solutions that truly fit the operational challenges of that industry.

Take Artificial Intelligence (AI) as an example. We talk a lot about AI today, but general AI is not enough. Industry-specific AI is what creates real value. An AI solution for the textile industry will be very different from AI for import-export or AI for wood processing.

Industry-specialized artificial intelligence can unlock significant value creation. (Source: BambuUP)

This is where the collaboration between enterprises and startups becomes extremely valuable. Businesses possess industry know-how, a deep understanding of processes, problems, and specific data in their field. Startups possess the technology.

When the two combine, we have a "complete entity" where the brain is industry knowledge and the body is technology. Solutions born from this combination can truly solve real-world market problems.

Many industries in Vietnam are still in the early stages of digital transformation, from textiles, wood processing, and import-export to retail chains and domestic logistics. All are "fertile lands" waiting to be explored vertically.

However, I want to take it a step further, as this is a relatively new perspective for many Vietnamese businesses.

Previously, when talking about open innovation, we often thought in an "outside-in" direction: I receive technology from the outside and bring it in for my own use. That is a good model, but it is not the whole story.

Let's think in an "inside-out" direction. Corporations and businesses collaborate with startups to develop a solution for themselves, then become the owners of that solution and provide it back to the market.

This not only creates new revenue streams but also transforms the business into a true technology entity. They are no longer just using technology; they are creating it from their own industry advantages.

This is a development direction that I believe will reshape many business models in the next five years.

The two models of Open Innovation (Source: BambuUP)

Trend 3: Ecosystem development – Value chain alliances instead of individual competition

Host: And the third trend?

Ms. Nguyen Huong Quynh: The third trend requires the greatest shift in mindset: developing according to ecosystems and value chain alliances.

Instead of each business and startup operating individually, we need to start thinking about how all businesses within the same value chain, or those serving the same customer base, can join forces to co-create larger solutions and go further together.

An interesting example comes from South Korea. In the construction industry, companies, including both contractors and material suppliers, realized they were facing very similar pain points.

Instead of each party seeking their own solution, they sat down together and co-created with a startup to produce the most complete solution for the entire industry. Now, they are preparing to take that entire "cluster" to compete in foreign markets as a unified force rather than as scattered individuals.

That is the power of a value chain alliance.

Of course, to achieve this, businesses need to overcome a major mental barrier: stop viewing those in the same industry as rivals and start seeing them as potential partners.

Ecosystems thrive through value chain alliances (Source: BambuUP)

Not everything needs to be kept secret. Many businesses are guarding information that everyone already knows or is doing in a similar way. Real difference and true competitive advantage lie elsewhere, not in building a wall around oneself.

When we shift from a competitive mindset to a collaborative one, working together to expand the pie instead of fighting over a fixed slice, everyone gets a larger portion. That is the logic of an ecosystem.

Two priority areas for Vietnam to make a global mark

Host: In that picture, which areas do you believe Vietnam should prioritize most to create a difference?

Ms. Nguyen Huong Quynh: Looking at the overall picture, I see two areas that are particularly important for Vietnam, not just because of the industry's potential, but because we have a real advantage to lead.

The first area is agritech, foodtech, and climatech. These are not just business opportunities; they are fields where Vietnam has geographical, ecological, and practical advantages that no other place possesses.

As climate change and food security become global concerns, Vietnam can entirely become the place where solutions are born, tested, and then exported to the world.

The second area is blockchain, gaming, Web3, and tokenization. This is a field where Vietnamese startups already have a "reputation" on the global map. We are not catching up; we are being recognized.

However, we have not yet utilized this advantage systematically, partly due to "gray areas" in policy and perception that prevent this field from being recognized for its true potential.

It is time to change that. If we want to become an innovation hub, we cannot try to do everything. Let's choose the fields where Vietnam can lead and move very fast and very deep there.

BambuUP in the next five-year journey: From a domestic bridge to an international platform

Host: In that context, what role will BambuUP play, and what are your directions for the platform in the coming time?

Ms. Nguyen Huong Quynh: We have set three major focuses.

The first focus is to continue being the most reliable source of information for businesses and corporations regarding innovation trends, both domestically and globally.

Whether you are a BambuUP customer or not, we want to ensure that Vietnamese businesses are always updated with information so they are not left behind.

BambuUP - a one-stop innovation platform

The second focus is to accompany corporations and businesses in enhancing their innovation execution capacity, not just at the awareness level but down to the organizational, procedural, and human levels.

As we have seen from the previous three episodes of this series, the biggest gap does not lie in knowing or not knowing, but in how to prepare for execution.

The third focus, which we are very excited about, is to accompany potential founders and startups in conquering international markets. 

BambuUP is on a journey to become an international platform, reaching beyond Vietnam's borders to connect with the global innovation ecosystem.

We want to help Vietnamese startups not only find domestic partners but also carry the Vietnamese flag to conquer the world.

2026 - The golden time for the Vietnamese Innovation Ecosystem

Host: A final message you would like to send to the businesses and startups following this series?

Ms. Nguyen Huong Quynh: I want to be direct. We are at a golden moment, but golden moments always come with pressure.

New policies are opening up directions that were previously restricted. Foreign partners and investment funds are looking at Vietnam with high expectations. This is a real opportunity.

However, this opportunity has an expiration date. If by 2026 there are no decisive enough actions or convincing enough success stories to spread, we might go back into hibernation. This time, the period to regain the trust of the international market could be five to ten years.

This is not a negative warning. It is a reminder that the best opportunities never wait forever.

—---------

Follow BambuUP for more practical insights on innovation - designed for businesses and corporations navigating transformation, and startups looking for the right gateway to grow.

—---------

Phượng Lê