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VN heads to startup nation

02:47 - 20/08/2022

Vietnamese policymakers are embracing an ambitious plan to turn the country into a start-up nation in the next four years.

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Accordingly, the Vietnamese Government has rolled out a slew of initiatives – including a state-backing funding program to give a fillip to the country’s nascent but growing startup ecosystem. The investment and M&A activities in Vietnamese startups are expected to touch a total value of VND2 trillion ($89.3 million) by 2025.

Following the initiatives of other governments in the region, especially the Indian action plan launched earlier this year, Viet Nam has announced initiatives, in order to “create an enabling environment for high growth businesses” particularly in the areas of new technology and intellectual property creation.

Recently, the Vietnamese government approved a package of fresh initiatives aimed at paving the way for the boom in technology start-ups. Under the project, the government will provide legal and financial support for an estimated 2,600 start-up companies across the country over the next 10 years.

Specifically, Viet Nam expects to support 1,000 startup companies and projects, of which 50 should be able to garner investments from venture capital funds and be eligible for M&As. These projects are seen to constitute a value of VND1 trillion (US$44.65 million) by 2020.

The government plans to launch an online portal that will keep start-ups updated about technologies, policies and funding. The government will also set up co-working spaces where startup companies can gain access to operational infrastructure for a minimal fee.

Start-ups will even receive financial support from the government for training, product testing and marketing.

The Ministry of Planning and Investment has already developed a set of incentives that will draw local and foreign venture capital funds into the country.

Statistics show that over the past 10 years, Vietnamese start-ups have received some US$150 million, and in the next 10 years, the investment will increase to US$200-US$300 million.

In addition to easier access to capital, policymakers must also create a transparent and fair business environment, which can only be developed through administrative reform to cut cumbersome paperwork for businesses.

The Viet Nam Innovative Startup Accelerator (VIISA) fund launched its website www.viisa.vn to look for technology startups in Southeast Asia for training and investment. The top 10 startups will get US$15,000 each or funding equivalent to 5% of their value during the training period as well as assistance for working offices and accounting and banking services.

 

An innovation support portal and service centre

The country will launch the National Innovative Startup Portal, which will provide information on technology, patents, policies, human capital, investment and networking. The portal aims to become a facilitator in connecting startups with resources, including business partners, innovation support agencies and events. In addition to that, service centers will also be established with the focus on financing the development of infrastructure.

These centers will be located near universities and financial organizations. Viet Nam hopes to get more pr get more private sector engagement in sponsoring infrastructure development costs in these centers, as well as hosting mentoring and networking events.
Support for incubators and accelerators

The scheme states that the country’s development funds can be used for financing startup incubators and accelerators alongside innovative companies. These entities might consider making borrowings with zero interest rate from the government agencies, while the state will probably join in investment rounds in startups. Support for startups, incubators and accelerators will also include necessary renewed legal norms.

 

source: chinhphu.vn

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