HCMC invests in business incubators for startup dreams

14:20 | 17/06/2017 Science - Technology

(VEN) - In the bid to turn Ho Chi Minh City into a major tech hub, with outstanding companies that can compete in the global economy, the presence of incubators plays an important role.

The local government has become involved in creating and running incubators to support early-stage startups, a field that traditionally belongs to private companies.

The city has approved a package of initiatives to support services and programs that help fledgling startups get their ideas off the ground.

To date, there are 20 incubators under state agencies, the private sector and universities. The city is supporting seven of them in implementing 86 projects. The Quang Trung Software Business Incubation Center is one of the city’s most efficient incubators, with 80-90 percent success rate after incubation.

The Saigon Hi-Tech Park Incubation Center has attracted and offered support for 41 projects in terms of commercialization of high-tech products by March 2017, with an average annual revenue of VND15-20 billion. In addition, programs organized by the incubation center have attracted the attention and participation of young people.

Some 11 incubators have to date signed memorandums of understanding on cooperation with Ho Chi Minh City Department of Science and Technology to implement a program to support innovations and startups during the 2016-2020 period. These include the Ho Chi Minh City University of Technology’s Technology Business Incubator (HCMUT-TBI), the Agricultural High Technology Business Incubation Center, the Ho Chi Minh City University of Technology and Education’s Faculty of Innovation and Entrepreneurship and the Ministry of Science and Technology’s Vietnam Silicon Valley Accelerator. These units select startup projects based on the resources supported by Ho Chi Minh City.

Last month, Ho Chi Minh City established an Executive Committee for Information Communications Technology (ICT) Startup Ecosystem. The board consists of 21 members with the participation of leading organizations, such as Microsoft Vietnam, IBM Vietnam, Sao Bac Dau, Lac Viet, Qualcomm Vietnam and HPT. The establishment plays an important role in startup consulting activities, contributing to opening up cooperation opportunities and creating playgrounds where large businesses and small startups can jointly develop solutions.

The Executive Committee for ICT Startup Ecosystem is planning to gather a mentoring team of at least 20 people to support

100-200 startup projects.

Ngoc Thanh