HCMC creates a solid foundation for innovative start-ups

06:00 | 04/07/2021 Science - Technology

(VEN) - Ho Chi Minh City (HCMC) has approved a project to improve the innovation capacity of 3,000 enterprises in the 2021-2025 period and support 1,000 start-ups by 2025.

hcmc creates a solid foundation for innovative start ups

Ho Chi Minh City has opened many innovation spaces

Innovative startup ecosystem

According to the Startup Ecosystem Rankings Report 2020 released by StartupBlink, the Ho Chi Minh City startup ecosystem is ranked 225th globally. From 2016 to 2020, the city created 34 incubators, 10 workspaces (about 33,000sq.m) and innovation spaces. It also connected with 160 startup advisors and more than 200 experts to improve knowledge and practical experience for more than 3,000 individuals and innovation start-up groups. On average, the city helps 650 to 700 enterprises a year to improve their capacity.

The city’s Department of Science and Technology is implementing a number of projects. These include forming a network of innovation start-up centers; building organizations to support innovation start-ups of international standards; promoting activities of technology trading floors to support technology transfers and innovation; and restructuring science and technology research programs.

The city is also strengthening international cooperation based on an Israeli cooperation model, helping improve technology, develop products, and enhance business capacity. The Quang Trung Software City cooperates with partners to help Vietnamese startups accelerate projects in the US, create new resources, and connect with the community to lift the city's creative innovation development to a new level.

In general, the city's support activities have made important contributions to national innovation and to Vietnam's global innovation index ranking, and created a stronger impetus for socioeconomic development in the country in general, and specifically in its southeastern region.

Creating a solid foundation

In order to promote creative start-ups, the Ho Chi Minh City People's Committee recently approved a project to support the innovative start-up ecosystem in the 2021-2025 period. The project aims to improve business competitiveness by creating a favorable environment for fast-growing enterprises based on intellectual property rights, technology and new business models.

The director of Ho Chi Minh City’s Department of Science and Technology Nguyen Viet Dung said innovative start-up enterprises focused in the past on developing ideas, making and perfecting products, incubating and testing products. However, almost no private resources were involved in these efforts, which mostly resulted in failures. The new project will focus on small and medium-sized enterprises and innovative start-up enterprises. The department will restructure scientific research and technology development programs, promote activities of technology trading floors to support technology transfers and creative innovation; develop a system of collecting and providing science and technology information for research and development and creative innovation.

To effectively implement the project, the Department of Science and Technology set eight groups of tasks, including infrastructure and services development to support the innovation startup ecosystem; improving capacity of members of the innovation startup ecosystem, forming start-up ecosystems in key fields and products; supporting start-up development of products and markets; supporting small and medium enterprises (SMEs) to improve productivity, quality and innovation; promoting innovation activities in the public sector; promoting international cooperation on creative innovative start-ups; enhancing communication for innovative start-ups; and evaluating project performance.

According to a 2020 report by ESP Capital and Cento Ventures, Vietnam has jumped into third place in the region in terms of innovative startup growth, just behind Indonesia and Singapore. The amount of venture capital in 2020 accounted for 17 percent of total investment capital in the region, up from five percent in 2018.

Ngoc Thao