Nurturing the local startup culture

The government sided more with enterprises in 2016, through commitments to creating a more enabling, transparent, and responsive government. What is your comment about these changes?

The 12th National Party Congress has clarified that the private economic sector is an important propellant of the economy. Thus it is necessary to improve all policies and mechanisms, and create incentives for the private sector to develop strongly in almost all fields in the economy.

This guideline is being institutionalised to meet the requirements of the public and enterprises. With a spirit of action, construction, and integrity, the government has deepened its strong determination to devote itself to serving the public and enterprises.

Such determination has contributed to enhancing the innovative and startup spirit of enterprises and people nationwide.

In 2016, Vietnam witnessed a record number of over 110,000 newly-established enterprises, up 16.2 per cent in registered capital year-on-year. The average registered capital of each newly-established enterprise was VND8.1 billion (nearly $368,200), up 27.5 per cent year-on-year. The government has set a target of seeing about one million enterprises in healthy operation by 2020.

Right from the beginning of its term in office, the government enacted Resolution 3/2016/NQ-CP on supporting the development of enterprises. The prime minister and the government as a whole have ordered the review of all documents and policies related to business and investment.

The government has also made great efforts in devising policies for special economic-administrative areas, administrative reform, and construction of an e-government. All these are aimed at the even buildup of policies in favour of investment and business activities, enhancing the economy’s competitiveness, and developing enterprises.

However, much remains to be done. Ministries and agencies will have to amend and supplement new guiding documents so that enterprises’ production and business activities can be performed better.

Supporting Vietnam’s youth through enabling measures for startups is a high priority for Deputy Prime Minister Hue

Six months ago, at a meeting with exemplary startup entrepreneurs for 2016, you said that the government would create policies to support the country’s startup ecosystem. Could you elaborate on this?

The prime minister has already adopted a scheme on supporting the development of the national startup ecosystem and innovation until 2025. He is now ordering the acceleration of institutional reforms, which will further facilitate startup and innovation activities. Focus will be centred on the protection of asset ownership rights, intellectual property rights, and on the enactment of incentive policies about investment, credit, tax, production sites, infrastructure, and human resources.

We have a favourable cultural and social environment. We always treasure talented people – including the many scientists who have brought glory to the country. Another advantage is in the country’s golden population structure, with a surge in the middle-class, and a dynamic younger generation who is very quick in learning and developing new technology.

This startup spirit does not only mean the generation of employment for fresh graduates as in the past. It has become the national spirit which imbues all enterprises. We have to learn how to accept failure and risk, because a startup makes for adventurous investments.

According to plan, the government will build up its national startup portal and startup supporting centre network nationwide. It will also boost the implementation of communications and training programmes in order to raise awareness in startups over the whole of society.

The government will also devise legal mechanisms for financial policies and credit access for adventurous investment funds. There will be favourable policies about tax – including in personal income tax, and about using brainpower as a kind of asset. Also the role of commercial banks as facilitators for startup activities will be strengthened.

What is your comment on Vietnam’s startup circle? How have local firms prepared to grab opportunities arising from the fourth industrial wave?

During a cabinet meeting in November 2016, the government assigned the Ministry of Planning and Investment to team up with other ministries and agencies to design a scheme on mobilising resources to take advantage of the fourth industrial revolution. This scheme will have to be submitted to the prime minister by February 2017.

For Vietnam’s existing young firms, startups are not only an economic issue, but also an experience and an opportunity for them to sharpen their skills, improve their knowledge, and also show off their own value. We should not consider an unsuccessful startup a failure. All will face challenges. But, as the Vietnamese saying goes, “No pain, no gain.”

I do believe that with their intelligence and skills, young people will be able to quickly grab advantages and opportunities brought about by the fourth industrial revolution, in order to materialise all of their business ideas, and then create assorted products and services which can be consumed both at home and abroad.

With the new year coming up, what is your message to the Vietnamese business community and startup circle?

All industrial revolutions have been closely linked with new generations of entrepreneurs and enterprises.

Around the world, there are many examples of outstanding startup cases, with very young billionaires such as Bill Gates of Microsoft and Mark Zuckerberg of Facebook. They have made positive impacts on the world’s socio-economic development. In order to reap success, they have to be enterprising people with great passion and ambition for work, and the determination to achieve all they dream of.

Vietnamese people are famous for their intelligence and creativity. Vietnamese students are high achievers in international competitions, and in their studies and research overseas.

The country is entering a new development stage, with deeper international integration featuring rapid scientific and technological development. The fourth industrial revolution is creating favourable conditions for Vietnam to learn from the scientific and technological achievements of the world. Thereby the country can gradually bridge the development gap between it and other nations.

Vietnam’s historical mission for further development is for us, especially the younger generation. They need to use their ambitions, creativity, and dynamism for their success.

We do believe that Vietnam can have regional and international-level startups. The prime minister wishes to see eminent startup stories created by young Vietnamese people, who can contribute to making Vietnam a hub for startups and high technology enterprises in Southeast Asia and the world.