Ha Noi offers more substantial support for startups

05/03/2020

VGP – Determining the entrepreneurial spirit and innovation as a core factor for the success of businesses and the country’s development, Ha Noi recently announced a project to support innovative startups in the city, pledging more than VND300 billion (US$12.98 million) in support of startup individuals and businesses. 

Striving to support enterprises

To support startup and innovative startup companies to meet the needs of innovative startup and realize Ha Noi’s guideline of becoming an innovative startup hub of the country, the municipal authorities have approved a project on supporting innovative startups in the city in the 2019-2025 period. 

The project is aimed at changing the awareness and promoting the spirit of innovative startup to the community, especially to Ha Noi’s students, young people and intellectuals, in addition to establishing a center for innovation and startup that will help to connect domestic and international resources in facilitating startup activities and leading the innovative startup ecosystem in the capital city.

The project will support the formation of three to five business incubators or common startup spaces in service of support activities for innovation and startups. It targets to assist the development of 500 innovative projects by 2025, with 150 innovative businesses successfully commercializing their projects and at least 20% of the companies successfully mobilizing capital from venture investment funds and conducting mergers and acquisitions with an estimated value of VND500 billion (US$21.64 million). 

The project on supporting of Ha Noi’s innovative startups has proved to be extremely righteous and necessary; however, it should make focused investments and there should be additionalprojects to support the output products of businesses. Alongside the city’s resources, a series of innovative centers, incubation programs and co-working spaces have been launched, thus meeting the community’s startup needs. Many of Ha Noi’s startup projects and companies have initially harvested certain achievements, with some projects having won high prizes in national startup competitions. Many innovative products of startup companies have been used as the city’s symbolic gifts at major events.

Continuing to accompany businesses

In 2020, with the spirit of constantly accompanying enterprises, Ha Noi will continue to improve the investment environment and enhance competitiveness, as well as supporting and developing businesses in accordance with the Government’s direction. At the same time, the city will focus on implementing key tasks to contribute to realizing the goal of developing one million businesses in Viet Nam by 2020.

The scheme is expected to help the city consolidate its ecosystem for startups, with an added focus on establishing business incubators and private startup support funds.

There has been an annual average of 20,000 firms founded during the past three years, but only 0.1 per cent of them have managed to raise capital for their operation and expansion.

By Vien Nhu