A medium sized plastics firm in Binh Thanh district, HCMC
The 12th Party Congress has drawn up big policies on socioeconomic development in the phase of 2016-2020, underlining the need of starting a business and developing enterprises in both quantity and quality.
Vietnam needs to have motive forces to obtain the target of a startup nation and the city has been striving to become one of the motive force with a road map, suitable policies and the goal of having 500,000 active businesses by 2020.
Startup atmosphere has been effervescent in the city with diversified models in many fields, concentrating on potential trading sectors such as wholesale, retail, processing and manufacturing. Through startup support policies, the municipal authorities have created a clear, safe, stable and efficient investment environment with nearly 275,000 active businesses now.
Specifically, the city has issued a plan to carry out a Government’s decree on business assistance and development; a program to assist small and medium-sized enterprises in innovation, competitiveness and international integration; and a coordination regulation on innovative startups.
In addition, a credit package of VND1 trillion (US$44.15 million) has been set up to assist startups. Another package worth VND2 trillion has been approved under the city’s investment stimulation program for businesses to renew equipment and apply science and technology in production and trading.
The Department of Industry and Trade is now establishing a center for enterprise development and startup to do consultancy work and coordinate the above resources.
Chairman Nguyen Thanh Phong states at a meeting with 250 young entrepreneurs and 50 startups in HCMC on July 19, 2016 (Photo: SGGP)
Authorized agencies have studied a mechanism to boost the establishment of venture capital funds and startup support funds for the young, broadened the business ideas exchange and organized the annual startup investment floor.
The city has mobilized resources to synchronously invest in infrastructure to facilitate startup, regularly and widely propagandized bilateral and multilateral free trade agreements and international integration. Training and consultant courses, startup clubs and exchanges with successful businesses have been organized for students to spark their intents of entrepreneurship.
City leaders have determined startup to be one of significant breakthrough fields contributing to the city’s sustainable development. Part of the determination shows through investment stimulation and bank-business connectivity programs.
Administrative reform will be stepped up towards e-government to save time for enterprises. Sub-licenses, counterfeits and trade fraud will be tackled.
Mr. Phong affirmed that city leaders will go together with startups and assist them as much as possible to develop. However he noticed that starting a business is a difficult process and integration will pose more challenges, requiring the young to have aspiration of being self-made, self-employment and standing on their feet.
He called on businesses to be more dynamic and creative and join hands with the city to obtain the target of 500,000 enterprises by 2020.