HSF: Sustainable startups drive both innovation and economic development

"The private sector, particularly startup in circular economy, plays an absolutely crucial role in economic growth," Michael Siegner said during a recent interview with VGP.

"The government can set the framework for economic development, but in the end, it's up to the private sector to deliver."

He commended Viet Nam for its impressive economic transformation after the COVID-19 pandemic—from crisis management to a focus on sustainable growth. Within the region, Viet Nam stands out as a bright spot. Ongoing institutional reforms, such as the simplification of administrative procedures, are expected to create a more favorable environment for innovation.

He also praised the Vietnamese government's efforts to support the private sector, including the current initiative to cut 30 percent of administrative procedures. These actions contribute to a more enabling environment for innovation and creativity, alongside the introduction of key policy frameworks such as the Law on Environmental Protection, the National Action Plan on Circular Economy, and the National Strategy on Sustainable Consumption for the 2021–2030 period.

From a geopolitical perspective, Mr. Siegner acknowledged Viet Nam's strong capacity to regulate and adapt amid global uncertainties. However, he noted that to achieve long-term sustainable development, Viet Nam must strike a balance between profitability and sustainability. This includes building resilient supply chains, fostering a creative workforce, and supporting business models that generate long-term employment.

Connectivity for growth

Startups in Viet Nam, particularly those in the circular economy sector, are currently facing common challenges such as lack of funding, limited management skills, and difficulties accessing the global innovation ecosystem.

Therefore, HSF is committed to supporting Vietnamese startups in connecting with innovation hubs in Singapore and encouraging large domestic enterprises to recognize the potential for collaboration with startups towards sustainable development.

"We provide capacity building and training for them, and also connect them with each other so they can learn and scale their models," Siegner added.

Currently, HSF primarily supports innovation- and sustainability-oriented startups through training, capacity building, and networking. One of its key initiatives is the ClimateLaunchpad program, initiated by the EU and co-organized by HSF in Viet Nam since 2020. Over the past five years, ClimateLaunchpad has attracted and trained nearly 100 startups from 12 provinces and cities across Viet Nam.

Two outstanding startups — Alterno, a company developing sand-based batteries, and AirX Carbon, which produces eco-friendly pallets — showcased their progress at the Partnership for Growth (P4G) Summit in Viet Nam on April 17. Both emerged as winners from past ClimateLaunchpad competitions, underlining the initiative's ability to surface and support transformative business ideas. They have huge potential not only for sustainability but also for integrating into existing value chains," Siegner noted.

"Our real contribution is creating a platform where startups from Viet Nam can connect with peers in Singapore, Malaysia, Indonesia, or even across continents like in Tunisia or other African countries," he added.

By building this cross-border network, HSF enables knowledge-sharing and potential collaborations between startups facing similar sustainability challenges but operating in diverse contexts. This global connectivity, Siegner emphasized, is key to scaling solutions and adapting innovations to environment.

In the future, as HSF continues to nurture connections across ASEAN and beyond, its mission reflects a broader ambition: to support the private sector in driving the shift toward a circular and sustainable economy. Through its ongoing programs and partnerships, the foundation aims not only to help startups survive but also to thrive and multiply their impact globally.

In addition, HSF will continue to expand its existing network. At the same time, the Foundation will promote connections between successful startups and large enterprises to create broader social impact, aiming toward sustainable development.

The head of HSF sent a message to the Vietnamese startup community: "Initial business failures are completely normal. Stay persistent and learn from your setbacks. Passion and perseverance are key factors for long-term success"./.