HCM City (VNA) – Ho Chi Minh Cityhas created many programmes to support start-up activities, and has plans toexpand its support to individuals and groups with potential, the Saigon Hi-techPark Incubation Centre (SHTP-IC) has said.

Since 2014, the centre has incubated 38 projects,22 of which have been commercialised, according to SHTP-IC. Last year totalrevenue from incubated projects reached 41.4 billion VND (1.8 million USD), thecentre said.

The centre also helps businesses andprojects register for intellectual property rights, conduct market research, improvemodel products to take to trade fairs, and connect entrepreneurs withinvestors, capital plans and venture capital funds.

Le Thanh Nguyen, head of SHTP-IC, said thiswas a positive sign for a public incubation model for science-technology businesses.

Last year, the city’s Department of Scienceand Technology kicked off a pilot programme for the incubation ofscience-technology businesses at HCM City-based Nong Lam University, HCM CityUniversity of Technology and Saigon Hi-tech Park.

The department also provided consultationand added technological services for the businesses.

In addition, a number of universities inthe city have also established start-up support centres for their own students.

Other private incubation centres have alsobeen built such as Software Business Incubator (SBI) and FPT Ventures.

Thanks to the diversity of incubationcentres, start-ups can now easily find support, investment and partners,according to the centre.

Challenges

Most of Vietnam’s start-ups, however, aresmall in scale and yet to enter the capital-calling period, according to theDepartment of Science and Technology.

They need support from the government andparticipation in public-private cooperation models, as well as contributionsfrom part of the innovative start-up ecosystem.

In addition, they are not lucrative enoughto attract investors because of specific features and policies of publicincubation centres.

Tran Van Tung, Deputy Minister of theMinistry of Science and Technology, said the biggest weakness were start-upskills. A successful start-up business must bring its products to the market,he said.

“In addition, mobilising capital frominvestors is very important. If start-ups cannot attract capital, they will nothave enough resources to grow,” he said.

Experts said the city would focus onencouraging innovative start-up activities among young people and high schoolstudents due to their great potential.

Nguyen Viet Dung, Director of theDepartment of Science and Technology, said it was necessary to help individualsand businesses conduct research and reform their operations.

Speaking at a recent meeting held in Hanoi,Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI),said more than 50 investment funds in diverse investment forms existed, butthey were scattered and on a small scale.

To foster start-up activities, the city hasintroduced many policies, including a programme to help small- and medium-sizedbusinesses to innovate and increase global competitiveness in the 2016-2020period.

HCM City has set a goal to support 2,000innovative businesses until 2020 by creating an innovative working environmentfor start-ups via public-private cooperation.

Vietnam currently has 1,800 start-ups, ofwhich 834 operate in HCM City.

Despite strong growth, investment ininnovative start-ups in Vietnam remains relatively modest, compared to theregion and the world.-VNA