Amidst the accelerating wave of global digital transformation, digital health startups are emerging as key pioneers driving innovation in healthcare systems, particularly in developing countries. In Vietnam, the convergence of rapid digitalization, proactive innovation policies, and increasing demand for personalized healthcare services has created a favorable environment for the growth of a vibrant digital health startup ecosystem. However, the ecosystem remains constrained by fragmented data governance, underdeveloped legal frameworks, and a lack of targeted investment mechanisms. This study examines the Vietnamese digital health startup landscape using a policy innovation perspective grounded in the Health Innovation System (HIS) model. Drawing from global best practices such as Singapore’s HealthTech regulatory sandbox, Israel’s unified digital health infrastructure, and the European Union’s approach to data governance, the paper proposes a three-pillar policy framework to catalyze systemic growth. The proposed framework includes: (1) establishing a regulatory sandbox for healthtech to enable experimentation; (2) creating a standardized, interoperable, and secure health data infrastructure aligned with international standards such as HL7 FHIR and GDPR; and (3) designing fiscal incentives and co-investment mechanisms to support clinical validation and scalability. Through qualitative document analysis and international benchmarking, this research provides actionable insights for Vietnamese policymakers and ecosystem stakeholders. By addressing the structural and institutional challenges impeding innovation, Vietnam can accelerate the development of a resilient, inclusive, and future-ready digital health ecosystem that meets both domestic and regional healthcare needs.