HCM City (VNA) – As Vietnam’s economic hub, Ho Chi Minh City boastsadvantages to develop startups, with its science-technology resources accountingfor 25 percent and the number of operating businesses taking up 50 percent ofthe country’s, while its labour productivity is 2.5 times higher than thenational average.

More than 760 startups are operating in the city, accounting for more than 42percent of the country’s total. Among those, 49 percent have found sponsors andinvestors.

According to experts, Vietnam ranks third in the number of startups in SoutheastAsia. However, the social impact startup ecosystem lags behind compared to regionalcountries like Thailand and Malaysia.

To solve this challenge, the Ministry of Science and Technology, the UNDevelopment Programme (UNDP) and Citi Foundation are implementing the “Youth Co:Lab Vietnam 2018” initiative. It aims to seek the next generation of leadingsocial entrepreneurs in Vietnam, following the success of the SDG Challenge in2017, where four Vietnamese startups received more than 85,000 USD inequity-free seed funding and a year-long business incubation programme.

Vietnamese businesses have paid attention to innovation but only for short-termgoals, with few new products developed. This explains why domestic enterprisesare yet to set up value chains for sustainable development.

Nguyen Ky Phung, Deputy Director of the HCM City Department of Science andTechnology, said startup support organisations still face many difficultiesbecause there is lack of expert networks and professional services forincubation activities.

The city is completing institutions and developing a favourable business andinvestment environment to build itself into a smart city and a city ofinnovative startups, he said.

At the same time, it will boost the development of businesses in combinationwith applying science and technology, developing a startup ecosystem and enhancingcooperation and experience sharing with developed countries in this field, headded.

At the recent event “Connecting Vietnamese Startups At Home and Abroad”,Secretary of the municipal Party Committee Nguyen Thien Nhan emphasised theneed to form a startup ecosystem to boost links between scientists and firms indeveloping startups.

According to Vice Chairman of the city People’s Committee Le Thanh Liem, HCMCity will encourage, step up and form startup spirit and promote the role ofstartups in development, thus making itself a leading city in the country instartup activities.-VNA