Vietnam continues to face a persistent paradox: despite being lauded as a dynamic nation with a large, youthful population and a strong spirit of innovation, the failure rate among startups remains alarmingly high - over 70%.

Many projects are terminated before they generate any revenue. Numerous families have lost their assets after investing faith and capital into ideas that lacked a sound market foundation. Disillusioned, many young entrepreneurs abandon their startup journeys.

This is not merely the failure of individuals but a sign of deeper structural issues within the national startup ecosystem.

For years, Vietnam’s common approach to supporting startups has centered around co-working spaces, training programs, networking events, incubators, and competitions.

However, most of these initiatives have prioritized “activity” over “value,” lacking the foundation necessary to turn ideas into products - and products into revenue.

Startups lack real-world problems to solve. Enterprises have no formal mechanisms to place market orders. The market itself is too impatient to wait for half-finished solutions.

The issue, therefore, is not a lack of talent, but the absence of a real, functioning innovation system.

Amid this backdrop, the emergence of CT Innovation Hub 4.0 - a next-generation innovation center developed by CT Group - has garnered attention for its radically different approach. Rather than focusing on “space,” the model builds a “creative economic system” where every activity, from ideation to commercialization, is directly tied to market demand and powered by core technologies like Web3, blockchain, and AI.

This is no longer just a startup support center - it is a knowledge economy engine, treating innovation as an actual economic sector.

Technology as the engine, market as the compass

Globally, successful innovation ecosystems rarely begin with ideas. They start with real needs.

Finland has proven this by allowing private innovation centers to receive problem statements directly from enterprises, feeding them into training and research programs to generate highly applicable solutions.

Israel, often dubbed the “startup nation,” has taken this further with its “Fund of Funds” model: the government underwrites risk, businesses present market challenges, and universities provide solutions. This shortens commercialization timelines, boosts economic returns, and strengthens national competitiveness.

CT Innovation Hub 4.0 adopts this spirit and adapts it to Vietnam’s conditions. Its operational framework revolves around a formula: solve real problems, create real value, generate real profit.

Instead of starting with ideas that “might sell,” young entrepreneurs begin with specific needs from businesses or society. This eliminates the most common risk in startups - developing something the market does not want.

Three core technologies serve as the model’s engine. Web3 ensures transparent decentralization, acknowledging individual contributions and distributing value fairly. Blockchain protects intellectual property and the entire commercialization chain. AI accelerates research, simulates user behavior, and significantly reduces testing costs.

When combined, these technologies transform innovation - often seen as unpredictable - into a measurable, profitable value chain.

This model not only benefits startups but also delivers immediate value to businesses.

As R&D costs soar and digital transformation becomes imperative, most Vietnamese companies - especially small and medium-sized enterprises - lack the resources to build their own research departments. CT Innovation Hub 4.0 acts as a shared R&D center where businesses can submit problems, receive rapid solutions, and pay a fraction of what in-house development would cost.

This opens up opportunities for hundreds of thousands of enterprises nationwide to boost productivity and competitiveness.

Strategic value for society

On a broader scale, the model holds strategic implications.

A self-operating, profitable innovation infrastructure can stimulate knowledge-based economic growth, nurture internationally competitive startups, and reduce dependency on state budgets.

Once franchised to localities, it could form a nationwide innovation network where knowledge and value flow continuously.

Ho Chi Minh City: An ideal ground for innovation

CT Innovation Hub 4.0 is not just a concept - it’s already operational at 20 Truong Dinh Street in Ho Chi Minh City, with plans to expand through franchising.

Hanoi has become its first franchise customer, proving that this model is not just theoretical but economically viable. Several domestic and international organizations are also exploring implementation in their own regions.

The model received high praise during the December 9 event “City Leaders Meet with the Science-Technology and Innovation Startup Community,” where Ho Chi Minh City officials posed a vital question: How can the city become a true startup and innovation hub? Where should we begin, what should be prioritized, and where are the resources?

CT Innovation Hub 4.0 emerged as a practical answer. It brings exactly what the city needs: real-world applicability, immediate value creation, robust core technologies, and a profitable self-sustaining mechanism.

With the nation’s largest economic scale, a diverse enterprise ecosystem, strong demand for digital transformation, and a rich youth talent pool, Ho Chi Minh City is the ideal launchpad for this model.

If integrated into the city’s innovation strategy, CT Innovation Hub 4.0 could act as a powerful catalyst - solving real economic and social challenges, accelerating the commercialization of scientific products, and enhancing the global competitiveness of Vietnamese startups.

A national opportunity - and a caution

Naturally, every innovation center model has its own strengths and limitations. It is up to local governments and businesses to determine which approach best fits their unique contexts.

In Vietnam, there’s a growing trend among localities to build large-scale innovation centers. However, this also raises concerns about their actual effectiveness.

Without solving the issue of operational efficiency, such projects risk becoming costly showpieces. Building is easy - running them effectively is another matter entirely.

In fact, some large tech firms in Vietnam have built innovation centers five to six years ago that still haven’t demonstrated tangible effectiveness.

From a national perspective, this model represents a major opportunity for Vietnam to shift from a movement-based startup support ecosystem to a truly functional innovation ecosystem.

When innovation becomes an economic sector, young people are shielded from risk, businesses are empowered by technology, and society benefits from a sustainable knowledge infrastructure.

This could be the foundation for Vietnam’s next phase of development - where knowledge becomes the central resource and innovation the main driver of growth.

Thai Khang