The project draft “National Program to Support Innovative Startup Ecosystem in Vietnam by the year 2025” has been approved by The Prime Minister. IPP has been supporting this process by working with policymakers and bringing in international experts from US to Vietnam. This activity is one of IPP’s effort to assist developing innovation policies at a national level.
Assigned by the Deputy Prime Minister Vu Duc Nam, Ministry of Science and Technology (MOST) created the Project draft: “National Program to Support Innovative Startup Ecosystem in Vietnam by the year 2025”. On 18/05/2016, The Deputy Prime Minister has approved this project in order to create a favorable environment to promote and support the formation and development of startups with high-growth potential based on new technology or business models.
Members from Akira project – a startup dedicated for learning TOEIC online in Hanoi
The project includes the following main contents:
- Building the Online Portal for the National Innovative Startup Ecosystem;
- Developing Service Hubs for innovative startups under different ministries and local governments;
- Organizing the National event for startup ecosystem (Techfest) and large scale local startup events;
- Continuing to implement and expand Vietnam Silicon Valley Project;
- Providing capacity building and services for startups via education and service organizations;
- Improving infrastructure for startups, i.e. co-working space, prototype design labs, testing labs, cloud services;
- Enhancing startup culture through a special media channel for startups on Vietnam television and other international media;
- Connecting Vietnam startup ecosystem with regional and international ecosystems through exchange programs, study tour abroad and inviting international startup supporting organizations to Vietnam;
- Helping to introduce startups from Vietnam with international partners and investors, facilitating them to open international representative offices;
- Encouraging the use of science and technology development funds in ministries, local governments and enterprises to support innovative startups through means of loans, grants or investment;
- Reviewing existing legal documents and proposing necessary updates or new legal documents to promote innovative startup environment.
The Project aims at accomplishing the following objectives by 2020: will have already completed main legal framework for startup ecosystem; Run the Online Portal for the National Innovative Startup Ecosystem; Supported approximately 800 startup projects, 200 startup enterprises, of which 50 successfully raised follow on investment from private venture investors or undergone mergers and acquisitions, with total value of about 1,000 billion VND (about 50 mil USD).
By 2025, it is expected that the Project will have already supported 2000 startup projects and 600 startup enterprises, of which 100 successfully raised follow on investment from private venture investors or undergone mergers and acquisitions, with total value of about 2,000 billion VND (about 100 mil USD).
It can be seen that the objectives of the Project is not only the quantity of startups beings supported but also the follow-on investment that they are able to raise from private investors and the society.
Specifically, the goal that successful businesses graduating from this Project can attract “1,000 billion VND by 2020” and “2000 billion VND by 2025” is referred to private investment and not State funding. From that, it is shown that government’s role is only to support startups at their earlier stages. Along with it, private investors and society’s support play a vital role in ensuring the efficiency and sustainability of the startup ecosystem in Vietnam.