Vietnam is working to strengthen procedures for innovation and entrepreneurship centres. This is to provide ideal conditions for the operation and development of startup businesses. Huynh Thanh Dat, Minister of Science and Technology, stated that Vietnam’s startup ecosystem is changing and growing swiftly.
He stated that venture capital flow in Vietnam was increasing again following the Covid-19 outbreak. He cited figures indicating venture financing reached US$634 million in 2022. Furthermore, gaining US$413 million in the first six months of this year. According to the government, Vietnam’s R&D investment remained minimal, accounting for only 0.5% of the country’s GDP.
There were still a few unicorn businesses worth $1 billion despite many startup and innovation assistance programmes had been developed throughout the years. Many startup support facilities have been established around the country, both officially and privately funded, and their business models are diversified, he noted.
Nearly 100 incubators and groups were establishing support facilities in approximately 20 communities. Several foreign startup assistance groups have also established branches in Vietnam. For example, Singapore’s Block71 in Ho Chi Minh City, Da Nang, and Seoul’s innovative startup centre, K-Startup.
He continued on to say that the operation of startup support centres is still fragmented.
Director of the Binh Duong Province Department of Science and Technology said that a comprehensive finance system for startup assistance centres are required to ensure coordinated execution of their support programme. Le Duc Vien, a representative from Da Nang branch, Vietnam was required to establish a national startup support centre. For example, a suitable legislative system, favourable policies, and skilled human resources to lead others.
According to him, the national centre should be a public organisation that operates for non-profit objectives.
Vien said that as of now, Vietnam has not had any policies that are strong enough to promote breakthrough development for startups and innovation. In addition, startup and innovation centres should also include infrastructure, working space, equipment, and training space.
“Besides, these centres should be allowed to use financial resources collected from leasing public assets and providing services to invest in startups.”
