HCMC invests US$134 million in startup, technology renewal projects

The Ho Chi Minh City People’s Committee will set up a startup fund with the initial capital of VND1 trillion (US$44.6 million) as a part of its action plan to implement the Government’s Resolution 35 on business assistance and development by 2020.

The launching ceremony of a startup program for the youth in HCMC in May this year (Photo: SGGP)

In an announcement yesterday, the committee’s office chief Vo Van Hoan revealed one more fund worth VND2 trillion ($89.2 million) will be set up to finance technology and equipment innovation and establishment of a startup assistance center.

The funds just provide initial capital, said Mr. Hoan , promoting universities, enterprises and associations to establish startup funds on their own.

Districts and agencies will start building specific works to sponsor businesses next week.

According to the plan, the city targets 500,000 businesses in the next four years, it is 281,000 now. Private sector will contribute to about 65 percent of the city’s Gross Regional Domestic Product (GRDP) and 64 percent of social investment capital which is 61 percent at present.

To obtain these targets, HCMC has put forward measures, for instance it will improve the publicity and transparence of procedures, plans and projects and build a mechanism to transfer individual business households into enterprises.

Director of the Department of Planning and Investment Su Ngoc Anh said that the department would work with districts on measures to link up and help businesses attend in value chains in the following week.

By Mai Anh – Translated by Hai Mien

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