Philippines and Vietnam Emerge as Leading Southeast Asian Startup Hubs in 2024

The Philippines and Vietnam have solidified their positions being the top destinations for startups in Southeast Asia in 2024, driven by significant advancements in corporate governance, sustainability, and innovation.

Why this matters: The growth of startup ecosystems in the Philippines and Vietnam has significant implications for the economic development of Southeast Asia. This could lead to increased innovation, job creation, and foreign investment in the region, shaping its future.

In the Philippines, companies like SM Investments Corp have been recognized for their strong adherence to corporate governance. The company marked its ninth win in this category, highlighting the country's commitment to transparent and effective corporate practices. Additionally, Mactan Cebu International Airport (MCIA) received the Platinum Green Airport Award 2024 from the Airports Council International (ACI) for its sustainable operations, reinforcing the nation's focus on eco-friendly initiatives.

Newport World Resorts also gained recognition at the 11th annual Asia Pacific Stevie Awards, winning two accolades for its innovative product and excellence in leadership. These awards highlight the Philippines' growing reputation as a hub for innovation and sustainable business practices.

Vietnam has maintained its third position in the number of investment deals and total investment in startups in Southeast Asia, in contrast. Vietnamese enterprises invested over $136 million in new projects and supplemented capital in ventures abroad in the first five months of 2024. This robust investment activity highlights Vietnam's dynamic startup ecosystem.

As of May 20, Vietnam had 1,733 operational projects abroad with a total investment of over $22.25 billion. The majority of these investments went towards the mining sector (31.6%) and the agro-forestry-fishery sector (15.6%). Laos, Cambodia, and Venezuela were the top recipients of Vietnamese investments, receiving 24.8%, 13.1%, and 8.2% respectively.

The investment climate in Vietnam has been further promoted through various conferences and forums, including the Vietnam Innovation Forum 2024. Provinces like Thai Binh and Ba Ria - Vung Tau have seen significant increases in both foreign and domestic investment, reflecting the country's proactive approach to creating a conducive environment for startups.

The growth of startup ecosystems in the Philippines and Vietnam has significant implications for the economic development of Southeast Asia. These countries are driving innovation and job creation, shaping the region's future. Both nations have demonstrated their strength in corporate governance, sustainability, innovation, and technology, making them attractive destinations for startups and businesses looking to establish a presence in Southeast Asia.

Key Takeaways

• Philippines and Vietnam top startup destinations in Southeast Asia in 2024.
• Philippines recognized for strong corporate governance and sustainable practices.
• Vietnam's startup ecosystem driven by $136 million in investments in 5 months.
• Vietnam's investments abroad reach $22.25 billion in 1,733 operational projects.
• Both countries drive innovation, job creation, and economic growth in Southeast Asia.