Contribution of ideas to regulations on management of start-up ecosystem support scheme

Posted at: TUEsday - 29/08/2017 16:53 - post name: Cộng tác viên

 
Dr. Phan Tung Mau, Vice President of VUSTA, chaired the workshop

Dr. Phan Tung Mau, Vice President of VUSTA, chaired the workshop

In July 27, 2017, the Vietnam Union of Science and Technology Associations (VUSTA) organized the workshop to collect feedbacks on the Draft Circular on regulating the management of Scheme “National Program to support Innovative Start-up Ecosystem in VN till 2025” (Drafted Circular) which was drafted by Ministry of Science and Technology.

The Draft Circular was drafted and a number of feedbacks were collected after more than one year since the submission to Prime Minister for his approval of the Scheme “National Program to support Innovative Start-up Ecosystem in Vietnam till 2025”. According to Dr. Dang Ngoc Dinh, Director of Center for Community Support Development Studies (CECODES), the regulations were prepared too slowly. According to Dr. Han Manh Tien, Director of VUSTA Institute of Management (VIM), although it took long time for the preparation of the draft , there remained unspecific content, such as unclear definition of start-up ecosystem and start-up business.

Dr. Dinh discussed that the definition “Innovative start-up business is the business with operation duration less than 5 years since the date of being granted the Business Registration for the first time” is not entirely completed and he raised a question “Why there is only the criterion of operation duration taken into account?”. He commented, both in the Scheme and the Draft Circular, there is no definition on “start-up ecosystem”, especially in the case of Vietnam, what components are included. Other terms, namely “rapid growth ability” attached to start-up business, “new model of business”, and “intellectual property” are also not explained in the Draft.

 

According to Mr. Dinh, the content of the Draft Circular had not pointed out the differences in opinions, methods to support the start-up ecosystem in comparison to other regular science and technology schemes, projects and missions. For example, in Item b, Article 6, it is regulated that the bodies receiving support to implement the project and be the project manager must have experience and ability to organize, manage the project, but, in fact, start-up individuals and groups are normally very young, non-experienced and lack of knowledge on project administration. Similarly, the Mission Item Appraisal Council (Article 9) and Professional Evaluation Council (Article 18) still remain bureaucratic, lacking the presence of start-up consultants and risk investors.

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Mr. Nguyen Huy Cuong – Head of Division of Training and International Cooperation, National Agency for Technology Entrepreneurship and Commercialization Development, presented the Draft Circular


Dr. Nguyen Huy Tang discussed that there was a tendency of start-up in all industries and sectors, thus, start-up support by Ministry of Science and Technology should have its own characteristics, avoiding overlapping. According to Mr. Tang, the Draft needs to identify which types and fields of start-up to be supported, and the level of support to prevent scattering resources.

In sharing the same point of view, Prof. Dr. Phan Thi Kim, President of Vietnam Food Safety Association, said that the Draft Circular should introduce the list of sectors to be supported. Besides, the drafting body needs to consult the Law on Support for Small and Medium – sized enterprises that have been newly approved by the National Assembly and relevant documents for the completion of the Circular.

In addition to these main feedbacks, participants commented specifically on the structure of the Draft as well as every article and clause in the Draft Circular.

 

The Scheme “National Program to support Innovative Start-up Ecosystem in Vietnam till 2025” aims at accomplishing the following objectives by 2020: will complete main legal framework for startup ecosystem; Run the Online Portal for the National Innovative Startup Ecosystem; Support approximately 800 startup projects, 200 startup enterprises, of which 50 successfully raise follow-on investment from risk-taking investors or undergo mergers and acquisitions, with total value of about 1,000 billion VND.

 

By 2025, it is expected that the Scheme will have already supported 2000 startup projects and 600 startup enterprises, of which 100 successfully raised follow-on investment from risk-taking investors or undergo mergers and acquisitions, with total value of about 2,000 billion VND.

 

The project includes the following main contents: (1) Building the Online Portal for the National Innovative Startup Ecosystem;  (2) Developing Service Hubs for innovative startups at ministries, sectors and localities; (3) Organizing the National event for startup ecosystem (Techfest) and large scale local startup events;  (4) Continuing to implement  technology commercialization scheme in Vietnam following Silicon Valley model;  (5) Providing capacity building and services for startups via education and service organizations;  (6) Improving infrastructure for startups, i.e. co-working space, prototype design labs, testing labs, cloud services; (7) Enhancing startup culture through a special media channel for startups on Vietnam television and other international media;  (8) Connecting Vietnam startup ecosystem with regional and international ecosystems through exchange programs, study tour abroad and inviting international startup supporting organizations to Vietnam;  (9) Introduce startups from Vietnam with international partners and investors, facilitating them to open international representative offices through oversea Vietnamese representative agencies in fields of science&technology, and trade;  (10) Encouraging the use of science and technology development funds in ministries, sectors and localitiesand enterprises to sponsor, support partial costs of study, technology tests, market analysis, providing loans with low interest or non interest rates, contributing capital to innovative startups;  (11) Reviewing existing legal documents and proposing new issuance, amendment and supplement necessary legal documents to promote innovative startup environment.

Author: Linh Ngọc
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