This was reflected at the 2026 Demo Day, an event at the Vietnam-Japan Incubation Program organized in Hanoi on May 14 by the National Innovation Center, the United Nations Development Programme (UNDP), and BK Holdings.

It brought together 12 startups selected from among more than 100 applications and operating in fields such as AI, high-tech agriculture, environment, healthcare, logistics, and education.

At the event, the "buddy startup" model, where Vietnamese and Japanese startups jointly develop solutions, test business models, and share market insights, was mentioned repeatedly.

Loopnet, a Vietnamese startup developing a data-driven waste recycling model, partnered with Japanese counterpart Joycle for pilot testing.

Demeter, which operates in the high-tech agriculture sector, collaborated with Sorimachi to take Vietnamese farm products to the Japanese market.

Biowraps, a startup specializing in biodegradable packaging, has made progress in expanding commercial connections and is seeking investment in Japan.

Products by Loopnet, a startup developing a data-driven waste recycling model. Photo by Trong Dat

According to the organizers, over more than six months of implementation, the program has conducted more than 60 training and coaching sessions.

Startups were also connected with over 80 businesses and experts, and established more than 20 connections with Japanese partners. As a result, nearly 20% of participating startups initially formed opportunities for trade or international investment cooperation, mainly with Japanese partners.

As a result, nearly 20% of participating startups formed opportunities for trade or investment cooperation, mainly with Japanese partners.

Makino Taro, first secretary at the Japanese embassy in Hanoi, said startups are addressing problems not only in Vietnam but also globally, such as carbon emissions reduction, agriculture, healthcare, and manufacturing.

"I hope startups will succeed in Vietnam first, then expand to Japan and many other countries," he said.

Do Le Thu Ngoc, an expert at UNDP Vietnam, said such cooperation programs open a "new door" for Vietnamese startups to go international.

Japan is the first market, but others could follow once startups overcome barriers related to culture, language, and business practices, she added.

Pham Tuan Hiep, investment director at BK Holdings - Hanoi University of Science and Technology, said the biggest challenge for startups is not technology, but commercialization.

Pham Tuan Hiep, investment director at BK Holdings. Photo by Trong Dat

Technology is only a tool; what matters is whether the product solves customer problems, he said. "Passion for technology is not enough. Startups also need to understand the market and investors."

Statistics from the Ministry of Science and Technology show that Vietnam’s startup ecosystem is growing rapidly, with more than 4,000 startups including two unicorns, or startup valued at US$1 billion or more.

The national innovation startup strategy issued in early April considers innovative entrepreneurship a national cause aimed at driving fast and sustainable growth.

By 2030, Vietnam aims to have five million business entities, including at least 10,000 innovative startups. To achieve this, it plans to develop a support network with at least 300 innovation centers.

The strategy also targets having Vietnam among the top 40 countries in the Global Innovation Index, five unicorns in the country, and growing the venture capital market to $1.5 billion by 2030.