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Conditions in place to develop innovative startup ecosystem

Released at: 19:39, 21/11/2017

Conditions in place to develop innovative startup ecosystem

Photo: thoibaotaichinhvietnam.vn

VCCI forum hears of potential for Vietnam to develop ecosystem necessary for startups to blossom.

by My Van

Vietnam is considered to have significant potential for the development of an innovative startup ecosystem, a forum on startup ecosystems held recently by the Vietnam Chamber of Commerce and Industry heard.

The components for eco-innovation in the country are in place and are actively supporting innovative projects and enterprises in the country.

There are now about 21 institutions, seven business promotion organizations, and 22 domestic and foreign investment funds that are key components of a startup ecosystem.

Mr. Tran Van Tung, Deputy Minister of Science and Technology, told the forum that in Vietnam’s startup eco-system there are sufficient components for development, with good quality startups, venture capital funds, and individuals and organizations that support startups or provide certain services.

For many reasons, however, the ecosystem has not been able to bring its potential into full play, mainly due to the fact that startup supporters are active but lack cohesion.

Over the last two years, many specific policies have supported young people wishing to do business, small and medium-sized enterprises (SMEs), startups, innovative businesses, and businesses with growth potential. Decision No. 844 from the Prime Minister approved the scheme on “Supporting the National Innovation System to 2025”.

Ms. Thach Le Anh, Project Manager at Silicon Valley Vietnam, reviewed some of the traditional channels that companies can take advantage of in calling for capital: family and relatives, banks, venture capital funds, the stock exchange, State funds, and non-government organizations.

“Despite these capital mobilization channels, startups are often only able to mobilize capital from angel investors, venture capital funds, and initial investment funds,” she told the gathering. “The amount of fund management is very small and often not enough to scale up the fund management team.”

Mr. Dam Quang Thang, General Director of the Agricare Vietnam Co. and Chairman of the Hanoi Agricultural Chemicals Association - Entrepreneurship Advisor, said the best solution now is to exploit the huge resources of SMEs.

According to Mr. Thang, SMEs have quite a lot of experience from their successes and failures - the experience that starting a business is easy. In addition, they can also advise and help with product development, have good financial resources, and stable businesses.

“At the same time, SMEs are applying technology that is a good example for startups in regards to innovation,” he said.

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