Designing a Startup Capital Market for Vietnam: Comparative Evidence from South Korea, Malaysia and Taiwan Region

Innovation-driven entrepreneurship has emerged as an important source of economic growth, productivity improvement, and job creation in both developed and emerging economies. In Vietnam, the rapid expansion of the startup ecosystem has increased demand for financing mechanisms that are suitable for innovative and high-growth enterprises. However, startup enterprises continue to face substantial challenges in accessing capital due to limited operating histories, information asymmetries, inadequate collateral, and the absence of an organized secondary market that provides liquidity and investor exit opportunities. This paper examines the feasibility of establishing a dedicated capital market for startup enterprises in Vietnam. Using a comparative institutional approach, the study reviews startup market models in South Korea, Malaysia, and Taiwan region and evaluates their relevance for Vietnam’s legal and market environment. The analysis identifies several financing constraints affecting Vietnamese startups, including fundraising barriers, fragmented investor networks, disclosure deficiencies, and limited exit mechanisms. Based on these findings, the paper proposes a stock exchange-operated startup capital market combining simplified fundraising procedures, enhanced disclosure standards, investor protection measures, and a dedicated trading platform for startup securities. The paper further recommends legal reforms concerning securities issuance, crowdfunding, innovation certification, and investor participation. The study concludes that a specialized startup capital market could strengthen Vietnam’s innovation ecosystem by improving access to capital, increasing transparency, and creating more effective pathways for startup growth and investor exits.