Facilitating Vietnamese startups to gain success

Monday, 2019-06-17 18:23:46
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Deputy PM Vu Duc Dam speaks at the Vietnam Ventures Summit 2019. (Photo: thuongtruong.com.vn)
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NDO – Eighteen investment funds pledged a combined US$425 million to invest in Vietnamese startups in the next three years at the Vietnam Ventures Summit 2019 recently held in Hanoi. In addition, the presence of more than 100 foreign capital funds at the event showed the attractiveness of Vietnam's business environment and startup ecosystem for international investors.

According to Topica Founder Institute’s annual report on investment in Vietnam’s startups in 2018, Vietnamese startups received US$889 million investment in 928 deals from domestic and foreign investment funds in 2018, tripling the total compared to 2017 and six times higher than that in 2016.

Vietnam's startup ecosystem has also seen impressive growth in the number of businesses, when increasing from 400 startups in 2012 to 3,000 startups in 2018, the third largest growth rate in Asia.

Many Vietnamese startups have high level of technological innovation without repeating business models and ideas that have been implemented in other countries. So far, many large corporations such as FPT, Viettel, Vingroup, CenGroup, and others have officially participated in venture investment.

There are more than 40 business incubators and business promotion organisations and 60 joint working spaces throughout the country. The entrepreneurial ecosystem in Vietnam has received strong attention in terms of policy, infrastructure, financial institutions and support services.

Startup and innovation culture is increasingly encouraged among young people and has become the national entrepreneurial spirit. Since 2009, the Ministry of Science and Technology and the Ministry of Planning and Investment have initially built the foundation for the startup ecosystem. Amid this movement, there are optimistic opinions that Vietnam's innovation economy will boom in the future, promising to be an attractive market for venture investors.

Determining creativity and innovation the most important growth driver in the industrial revolution 4.0, the Government is trying to implement incentive policies, create optimal conditions for startup development and improve venture investment mechanisms so that capital flows can be poured into startups in the most convenient and effective ways.

With the role of coordinating and creating a legal framework and policies in support of startups, the Ministry of Planning and Investment has made important commitments to the investor community.

Some of the commitments are regular dialogues and discussions with venture capitalists and closely coordination with relevant units to implement appropriate measures to facilitate investment flows. The ministry also committed the creation of favourable conditions for startups to have access to funding and development opportunities through the National Innovation Centre and resource development initiatives.

According to experts, besides these commitments, Vietnam should nurture domestic resources by not letting them going abroad to seek investment and set up their business.