Philippines and Vietnam: Leading Southeast Asia's Startup Ecosystem in 2024

The Philippines and Vietnam have emerged as leading destinations for startups in Southeast Asia in 2024. Both countries have demonstrated significant advancements in corporate governance, sustainability, and innovation, attracting substantial investments and nurturing a thriving entrepreneurial ecosystem.

In the Philippines, several companies and institutions have received recognition for their excellence in corporate governance, sustainability, and innovation. SM Investments Corp, a prominent Philippine-based company, was recognized by Alpha Southeast Asia magazine with having the strongest adherence to corporate governance in the Philippines. This marks SM's 9th win in the category, as voted by 586 investors and analysts across Southeast Asia, the US, and Europe.

Additionally, the Mactan Cebu International Airport (MCIA) received the Platinum Green Airport Award 2024 from the Airports Council International (ACI). MCIA was recognized for its projects aligned with the United Nations Sustainable Development Goals, ensuring safe and sustainable airport operations while preserving the environment.

Newport World Resorts also made headlines by winning two recognitions at the 11th annual Asia Pacific Stevie Awards for its innovative product and excellence in leadership. The integrated resort was lauded for its commitment to offering epic experiences to patrons while championing sustainability within the industry.

Why this matters: The growth of startup ecosystems in the Philippines and Vietnam has significant implications for the economic development of Southeast Asia. As these countries attract more investments and talent, they are likely to drive innovation and job creation, shaping the region's future.

Vietnam has maintained its third position in the number of investment deals and regained the third place in terms of total investment in startups in Southeast Asia, according to the 2024 Technology and Innovation Investment Report. Vietnamese enterprises invested over $136 million in new projects and supplemented capital in ventures abroad in the first five months of 2024.

As of May 20, Vietnam had 1,733 operational projects abroad with a total investment of over $22.25 billion. The majority of Vietnam's overseas investments went towards the mining sector (31.6%) and the agro-forestry-fishery sector (15.6%). Countries with the largest investment from Vietnam were Laos (24.8%), Cambodia (13.1%), and Venezuela (8.2%).

The investment climate in Vietnam has been promoted through conferences and forums, including the Vietnam Innovation Forum 2024. The northern province of Thai Binh, a major hub for agro-fishery exports, has been promoting its trade and investment climate through conferences abroad. Meanwhile, the southern province of Ba Ria - Vung Tau saw foreign and domestic investment surge 7.2-fold to almost $1.63 billion and over 25.93 trillion VND (1 billion USD) during the first four months of 2024.

Overall, the Philippines and Vietnam have demonstrated their strength in corporate governance, sustainability, innovation, and technology. These factors make them attractive destinations for startups and businesses looking to establish a presence in Southeast Asia.

Key Takeaways

• Philippines and Vietnam emerge as top startup destinations in Southeast Asia in 2024.
• Philippines recognized for corporate governance, sustainability, and innovation excellence.
• Vietnam attracts $136 million in investments and regains 3rd place in startup investments.
• Vietnam's overseas investments reach $22.25 billion across 1,733 projects.
• Both countries demonstrate strength in corporate governance, sustainability, and innovation.