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Global cities seek solutions to startup scale up challenge

Speaking at the first session of the 2026 Business Partner City (BPC) Roundtable Conference held in Ho Chi Minh City on October 23, representatives from Osaka, Ho Chi Minh City, Manila, Melbourne, and Hamburg examined how international cooperation could address different obstacles facing startups and small- and medium-sized enterprises (SMEs), from developing initial ideas to competing in overseas markets.

The first session of the 2026 BPC Roundtable Conference discussed how international cooperation could address different obstacles facing startups and SMEs. Photo: VIR team.

Lars Anke, chief representative of the Hamburg Liaison Office in China, identified the transition from startup to scale-up as a particular difficulty, even in established innovation ecosystems such as Germany and Europe.
“There are many people with good ideas who start their own startups, but it is really hard to scale up to a level of development where the company becomes economically sustainable without public funding or external funding. The underlying challenge was securing access to markets, rather than simply encouraging more businesses to launch,” Anke said.
According to Anke, Hamburg has sought to address this through an industry cluster approach, using established networks as platforms and incubators to help smaller companies develop commercial relationships and expand their operations.
“I think BPC and the BPC network can play an important role at a global level,” he said. “Such an approach could help emerging businesses navigate unfamiliar markets, including Vietnam, China, and Europe, by connecting them with relevant partners and resources.”
Drawing on the Philippines’ experience, Katrina Elaine C. Aguila, representing the Philippine Trade and Investment Centre in Ho Chi Minh City, highlighted Startup Week as an initiative designed to connect entrepreneurs with capacity-building organisations, rather than focusing exclusively on potential investors.
“This matches not necessarily investors, but capacity-building entities from government and the private or public sector, at the crucial stage of developing innovations, including the early, inception, and idea stages of technology,” she said.
The distinction reflects the different forms of assistance businesses require during their development. Early-stage entrepreneurs may need institutional guidance, specialist expertise, and access to relevant stakeholders before they are ready to seek commercial financing or enter overseas markets.
Aguila also pointed to cooperation between Manila and Ho Chi Minh City, where the Philippine Department of Trade and Industry provides a direct channel for private-sector participants seeking connections with regional governments and potential project partners.
For Ho Chi Minh City, developing these connections is part of a broader ambition to establish an innovation ecosystem capable of drawing on both domestic and international resources. The city’s proposed approach involves supporting enterprises throughout their development, from idea formation, incubation, and technology testing to commercialisation and market expansion.
Tran Trong Tuyen, deputy director of Ho Chi Minh City Department of Science and Technology, said the city needed to prepare its policy framework and human resources while creating suitable conditions for overseas partners to participate in local innovation activities.
“Ho Chi Minh City’s ecosystem needs the international community to help build the ecosystem together. There are opportunities for international organisations to work with Vietnamese universities, particularly in high-tech industries, while supporting the development of markets in Ho Chi Minh City and the wider region,” he added.
However, reaching new markets also requires SMEs to understand the standards imposed by prospective customers, particularly when joining international supply chains.
Shirley Ng, general manager of the International Competitiveness Division at Australian Industry Group, noted that smaller suppliers were increasingly expected to demonstrate compliance with sustainability requirements covering decarbonisation and the circular economy.
“SMEs need to understand and meet the compliance requirements set by larger companies to remain part of their supply chains,” Ng said.
Drawing on the organisation’s experience of serving 60,000 businesses annually, Ng highlighted the importance of helping smaller firms build the knowledge needed to respond to these expectations.
She suggested that BPC members could use organisational coordination, government involvement, and digital tools to share sustainability expertise across participating markets.
The implications are particularly relevant to Vietnamese enterprises seeking to become suppliers to overseas businesses, including Australian companies, as meeting international requirements forms part of maintaining access to those commercial relationships.
“It does not have to be done alone. At the BPC level, organisational coordination and government involvement can make us strong partners,” Shirley noted.
Established by Osaka City Government in 1988, the BPC network promotes economic cooperation, business exchanges, and international expansion opportunities for SMEs. It comprises Osaka and 14 partner cities across Asia-Pacific and beyond, with Hamburg becoming its newest member in 2019.
Held annually since 1990, the BPC Roundtable Conference brings together local authorities, trade promotion organisations, and businesses to exchange policies, experiences, and cooperation opportunities. The 2026 gathering marks its 35th edition and Ho Chi Minh City’s third time hosting the event, following 2002 and 2016. The city joined the network in May 1997.
The network is coordinated by the Osaka BPC Council, with the Osaka International Business Promotion Centre serving as its secretariat.

BPC Roundtable Conference 2026 to open in Ho Chi Minh City
The 2026 Business Partner Cities (BPC) Roundtable Conference will be held in Ho Chi Minh City on October 23.

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