Startup businesses get access to aid of $87,977

The Department of Science and Technology in Ho Chi Minh City yesterday organized a seminar to guide startup businesses to apply for aid from the SpeedUp 2017 program in Saigon Innovation Hub (SIHUB).

Startup businesspersons are working in Saigon Innovation Hub (Photo: SGGP)

Startup businesspersons are working in Saigon Innovation Hub (Photo: SGGP)

SpeedUp 2017 launched by the Department in early January 2017 is a program to back startup people who can receive aid of VND2 billion ($87,977) during two years.
The program is considered as an activity to boost startup businesses which were launched in 2016. The Department organized the guidance seminar because very a few startup businesspersons have come to ask for the loan from the Department since the beginning of the year.

Meantime, as per Topica Founder Institute (TFI)’s latest report, Vietnamese startup community has called for a capital of $205 million in 2016, an increase of 46 percent compared to 2015.
Startup businesses in Fintech have been contributed with $129 million becoming the leading in the community.  Largest startup businesses in 2016 are Payoo, VNPT E-pay and Tiki.

VNPT EPay was founded in 2008 by VMG Media and Vietnam’s third largest state-owned mobile network operator Vietnam Post and Telecommunications Group (VNPT).Vietnamese mobile content provider VMG Media has sold its entire stake of 62.25 per cent in VNPT EPay to UTC Investment with total cost of $34 million.

Vietnamese technology giant VNG Corporation (VNG) has purchased 38 per cent of the Tiki Corporation, the owner of the e-commerce website Tiki.vn. 

Vietnamese startup business have actively found out the capital source from foreign investors because foreign investors are quick in assessing projects. It proves that foreign investors poured a lot of money in startup businesses.

The aim of SpeedUp 2017 program is to connect startup business community with investors, institutions, consultation groups and service providers to promote mature business; accordingly, the city will provide VND2 billion to each startup projects which was announced in end of the 2016. Yet the program has not worked as expected.

The SpeedUp 2017 program has not worked as expectation because it is just for startup businesses registered in HCMC which were established less than five years.

Moreover, the department placed top priority on projects of mechanism- automation, electronic- IT, chemical-pharmaceutical- plastic – rubber, food processing, biological technology.

More information of the program, people should search in http://sihub.vn/speedup2017/
 Information of registration and regulation of setting up a company, people should go to http://dost.hochiminhcity.gov.vn/pages/doanh-nghiep-khcn.aspx

By BA TAN – Translated by UYEN PHUONG

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