Hanoi (VNA) – The startup culture in Vietnam has taken off inrecent years, with foreign venture capital now five times higher than that bydomestic players. Thus, it is important to note that international cooperationis crucial to bolstering startup innovation in the country.

Enhancing international cooperation

At a recent conference to discuss measures that will attract domestic andforeign resources for Vietnamese startups, Phan Hoang Lan, head of the Planningand Finance Section for the Ministry of Science and Technology (MoST)’sNational Agency for Technology Entrepreneurship and CommercialisationDepartment (NATECD), said that Vietnam has witnessed robust development in itsinnovative startup ecosystem, with some 3,000 startups, double the figure of2015.

Vietnam is currently home to 30 business incubators and 10 businessaccelerators, with exemplary institutions like the Hoa Lac Hi-tech businessincubator, the Sai Gon Hi-tech business incubator, the Da Nang incubator, and theBusiness Startup Support Centre.

In particular, foreign players have landed big investments in Vietnamesestartups. According to a report compiled by the Topica Founder Institute (TFI),Vietnam received more than 291 million USD for 92 startup deals last year, comparedto 50 deals worth 205 million USD the year previous.

In addition, there are some 40 investment funds in Vietnam, most of which aredeveloped by foreigners.

Lan said that the NATECD has joined hands with the office of Project 844 on helpingthe national innovative startup ecosystem through 2025, which looks to supportexcellent startups to join international forums and bolster internationalcooperation through incubators and embassies.

Pham Dung Nam, Director of the office of Project 844, said that althoughforeign players have been present in 30 percent of total startup deals, theirinvestment is much larger than that made by Vietnamese firms. Therefore,mobilising foreign resources and promoting international cooperation areespecially important, especially as Vietnamese startups are becomingincreasingly attractive to foreign investors.

PhamHong Quat, head of the NATECD, also laid stress on the importanceof attracting international resources for Vietnamese startups and innovationworks.

Techfest, one of the largest startup events in the country, is organisedannually by the MoST to create connections for domestic and foreign stakeholdersin the startup ecosystem, he said.

Quat also highlighted that the event has drawn the attention of theinternational startup community and various foreign investors.

Techfest2018, scheduled from November 29 to December 1, will see the attendance ofPrime Minister Nguyen Xuan Phuc, who will hold a dialogue with innovativestartups to enhance the community’s ecosystem in the near future.

Creating a favourableenvironment for startups

According to Nam, the MoST has joined hands with relevant ministries andbranches to create favourable legal corridors for startup development,including the issuance of Circular No.1/2018/TT-BKHCN dated April 12, 2018 whichregulates the management of Project 844 and Decree 38/2018/ND-CP on investmentin startup SMEs.

The ministry also contributed to building content that supports innovativestartups and investment in startups from the sci-tech development fund.

Last year, the ministry successfully organised the APEC 2017 Startup Forum,drawing the participation of nearly 30 startups, and more than 30 domestic andforeign investors and venture capitals. The event created opportunities forAPEC member economies to look to form a dynamic and networked APEC startupcommunity.

Furthermore, a wide range of regional conferences have been held recently, helpinglocalities to exchange experience in innovative startup and capitalise theirstartup potential.

The Vietnam National Ecosystem Portal was completed, providing information on theinnovative startup ecosystem in the country. Meanwhile, this year, Project 844will channel its focus on improving capacity for startups, providing servicesfor startup businesses, and enhancing domestic and international linkages inthe field.

A networkexclusively for innovative startups will be set up, with the involvement ofinvestors, funds, a consulting network, and experts, among others. –VNA