Vietnam Academy Of Social Sciences

Solutions for Startup Ecosystem Development in Vietnam

17/06/2019

Nguyen Thu Thuy, Foreign Trade University.

 

Abstract: The article provides an overview on the roles and characteristics of creative startups and their ecosystem as well as an analysis of their current  situation in Vietnam, then discusses the impact of key elements on the development of the national startup ecosystem, such as the government policy and the legal framework, market access, human resources, sponsorship and  funding.  The  article  also  puts  forward  several  solutions  for  the  development  of  the  startup ecosystem in Vietnam.

Keywords: Startups, startup ecosystem, key elements, Vietnam. 

Subject classification: Economics.

 

1. Introduction

The policy of creative startup encouragement is one of the most outstanding policies in Vietnam recently. 2016 was chosen to be the year of the national startup while the Government approved the plan on “Supporting the national innovative startup ecosystem until 2025” of the Ministry of Science  and Technology, resolutions and policies supporting startups have been issued, which made Vietnam's startup ecosystem more attractive to foreign investors. There is an emergence  of  co- working spaces  and programmes for startups,  and  startups  are  tending  to  “go global” - reaching to the world. As a result, some startups have been recognised, honoured and received huge investments [4].

Despite the improvement in the business environment compared to the previous periods, the Global Entrepreneurship Monitoring (GEM) Vietnam Report 2015/2016 by the  Vietnam  Chamber  of Commerce  and  Industry  (VCCI)  showed some  indicators  that  remained weak and needed improving. Compared to other ASEAN countries, none of Vietnam’s indicators is better than those of the Philippines, Indonesia, Thailand, and Malaysia. Moreover, eight  indicators of Vietnam are even lower than those of the four countries. Unless solutions to improve the  startup  ecosystem  are  put  in  place timely, investors and startups will choose other countries in the ASEAN region which have better startup ecosystems to carry out their activities.

The article presents an overview on the roles  and  characteristics  of  startups  and their ecosystem as well as an analysis of its current  status   in  Vietnam, and then discusses the impact of key elements on the development  of the national startup ecosystem, such as the government policy and  the  legal  framework,  market  access, human resource, sponsorship and funding. The article also proposes several solutions to develop the startup ecosystem in Vietnam.

 

2. Creative startups and startup ecosystem

2.1. Definition and roles of creative startups

As  specified  in  the  Law  on  Support  for Small and Medium-sized Enterprises 2017, “small and medium-sized creative startups are  small  and  medium-sized  enterprises which are established to realise ideas based on the exploitation of intellectual property, technology,   new   business   models,   and having a possibility of rapid growth”.

Thus, a startup (or a creative startup) and the establishment of  a business are different. Establishing a business can also create big enterprises. However, innovative startups are defined as those based on new technology, a new business model, or creating a new market fragment, i.e. creating  the  difference not only to the domestic market but also to every enterprise around the world.

Roles of creative startups:

- Creating a new generation of labourers who are more motivated and knowledgeable: Since startup enterprises typically have low capital-density,   but   need   to   operate   as productive  as  possible,  they  thus  require new employees to be dynamic, creative and of high learning capability. Therefore, the new generation of employees has chances to discover new jobs and acquire experiences. Meanwhile, they need to self- adapt to be more proactive and flexible.

-  Creating new products, professions, and  jobs:  Startups  exploit  market  niches with new innovative solutions to create new products and services which are more advanced; therefore, startups also generate new professions and jobs for the workers.

- Contributing to the national economic growth: Creative startups create more values and boost economic growth. They are the most dynamic business players in the market, creating a strong driving force for the economy, promoting innovation and competitiveness through technological revolutions.

 

2.2. Key elements contributing to the success of startups

In  a  study  of  Bill  Gross,  the  Founder, Chairman and CEO of Idealab in 2015, after collecting data and analysing the success and failure of 200 startups, the author drew out five key elements contributing to the success of a creative startup [11].

Firstly, the most important element is the idea. A unique, creative and feasible idea will lay a foundation for the startup and its success.  The  second  element  emphasises the role of the teamwork. Creative startups always face many challenges and difficulties. Therefore, it is very important to establish a group of like-minded people who dedicate themselves to work together to realise the business  idea.  Startups  should  carefully select  employees  who  are relevant  to  the business,   the   idea,   and   the   corporate culture. The third element is the business model.  The  business  model  enables  the enterprise to grasp opportunities and threats to the development of its resources and to utilise  available  resources  to  promote  its strengths   properly.   The   fourth   one   is finance and investment. During the startup period, creative startups always face many difficulties, especially in terms of financial issues.  Therefore,  they  have  to  put  great effort  into  seeking  investors  and  startup incubators  from  which  they  may  receive support   packages   such   as   cheap   office leasing,  access  to  relevant  and  talented human  resources,  connections  with  other entrepreneurs, or direct financial investment. The last factor is the time. Market research is particularly important to help a startup to grasp  the  needs  of  the  society  and  to develop  proper and  specific business strategies as well as create highly applicable products and services which meet the need of the social development.

 

2.3. Overview of the startup ecosystem

According   to   the   National   Agency   for Science   and   Technology   Information,   a startup  ecosystem  is  defined  as:  “a  set  of interconnected  entrepreneurial  actors  (both potential and existing), entrepreneurial organisations (e.g. firms, venture capitalists, angel investors, banks), institutions (universities, public sector agencies, financial bodies) and entrepreneurial processes (e.g. the business birth rate, numbers of high growth firms, levels of “blockbuster entrepreneurship”, number  of  serial  entrepreneurs,  degree  of sellout mentality within firms and levels of entrepreneurial  ambition)  which  formally and informally coalesce to connect, mediate and govern the performance within the local entrepreneurial environment” [5].

A  Startup  ecosystem  has  the  role  of providing new opportunities for the actors and   institutions   inside   it.   The   startup ecosystem  not  only  contributes  to  job creation  growth  but  also  promotes  the development of new industries. The more it supports innovation in the industries, the better   the   manufacturers'   quality   and productiveness, the higher the income  of local residents, and the more opportunities for the export market it creates. A good startup  ecosystem  should  also  transform the  traditional  education  and  ensure  that future   generations   are   educated   about modern  industries  and  grasp  the  idea  of entrepreneurship. Moreover, the system should  encourage organisations   to empower learners to pursue their business ideas and plans.

 

3.  Development  stages  of  the  startup ecosystem in Vietnam

3.1. The 2000-2007 period

The 2000-2007 period witnessed the emergence of the first creative startups in Vietnam,  such  as  VNG,  Vatgia,  Socbay, and  VC  Corp…  However,  in  the  initial period, Vietnam’s creative startups have not attracted  much  attention.  In  2004,  IDG Ventures   Vietnam   (IDGVV),   the   first venture   capital   fund   in   Vietnam,   was established to    invest     in     high-quality enterprises which were at the beginning of their growth, focusing   on   e-commerce infrastructure, communication, information technology,   technology   businesses,   and entertainment. IDGVV had invested about USD 100 billion from 2004 to 2006.

From 2000 to 2007, it was not easy for investment funds to approach entrepreneurs because of a lack of linkage between them. Another reason for the limited operation of these funds is the entanglement in the legal framework.  Startup  incubators  have  just been rekindled with the earliest establishments   of   CRC-TOPIC   business incubator   by   the   Hanoi   University   of Science  and  Technology  (2003),  Quang Trung Software Business Incubator (SBI), Hanoi   Food   Processing   and   Packaging Business  Incubator  (2006),  and  Hoa  Lac High-Tech     Business     Incubator    Centre (2006).  Most  of  the  incubators  were  still facing difficulties in financing, operational funding,  and  human  resources.  A  main reason  for  the  situation  was  the  lack  of specific  policies  to  support  and  promote innovative startups  and the startup ecosystem  as  the  Government  was  not aware of the importance of creative startups to the economic development.

 

3.2. The 2008-2014 period

The  appearance  of  CyberAgent  Venture (CAV) in late 2008 blew a new wind to the creative  startup  sector  in  Vietnam.  CAV focused  on  enterprises  operating  in  the internet   sector,   occupying   high   market shares and managed by talented businessmen.  The  main  fields  of  startup enterprises  included  e-commerce,  internet services,  and  finance.  During  this  period, many startup enterprises had received investments and succeeded, such as Nhaccuatui, Tiki.vn.

Regarding the establishment of the domestic venture funds, the Law on Science and Technology (2008) stipulated that the State would establish a  high-tech venture fund.   However,   the   consensus   among ministries and sectors had not been reached when embarking the project.

In 2013, the startup wave had gone more steps with the ups and downs of Nhommua. The  website  for  group  buying  reached  a value  of  USD  60  million  with  monthly revenue of over USD 2 million at the end of 2012.  In  2014,  following  the  success  of Flappy Bird, the phrase “startup wave” had appeared in Vietnam for the first time.

2014 is the second consecutive year that VCCI, supported by the International Development Research Centre of Canada, had represented Vietnam joining the GEM Vietnam 2014 research, which provided an overall picture of business characteristics in Vietnam in different stages of the development cycle. The   figures  in the report showed the status of creative startups and  the  startup  ecosystem  in  Vietnam  in 2014.  The  startup  rate  was  low  at  2%, decreasing from 4% of 2013 and, therefore, much lower than the average rate of 12.4% in factor-driven countries2. Business activities in Vietnam mainly geared towards consumers   (89%). The proportions   of startup businesses in processing and business  services  were  much  lower  than those of efficiency-driven countries3 (respectively  5.5%   and   5.1%  compared with  23.5%  and  11.7%).  The  opportunity perception  and  business  capacity in  2014 had increased compared to those of 2013 but remained at low levels. Only 39.4% of Vietnamese adults noticed the opportunities for starting a new business and 58.2% of the   surveyed adults in Vietnam had confidence in entrepreneurial   capacities (those  of  2013  were  36.4%  and  48.7% respectively). In factor-driven   countries, these average rates were 54.6% and 64.7% respectively [6].

 

3.3. The 2015-2016 period

3.3.1. Policies and legal framework

Regarding financial policies, to support and promote startup enterprises, the Government had issued a number of financial policies, including direct supporting policies, such as tax and credit policies, and indirect supporting policies through the incubator model.

Firstly, corporate income tax incentives at   different   levels   were   applicable for startup enterprises with investment projects in preferential fields or investments in poor socio-economic   areas   such   as   rural   or remote areas. In particular, the highest level of  incentives  allows  the  application  of  a 10% tax rate within 15 years, a 4-year tax exemption  and  a  50%  reduction  of  the payable tax amount for the next nine years for new investment projects of the start-up enterprise  in  particularly  difficult  areas, economic     zones     orin areas where investment is encouraged. Additionally, the Ministry of Finance has submitted the Law No.106/2016/QH13 to the National Assembly amending and supplementing  a number of articles in the Law on Value- Added  Tax  (VAT),  Special  Consumption Tax, the Law on Tax Management, the Law on Import, Export Tax No.107/2016/QH13; Law on Fees and Charges No.95/2015/QH13 and Decree No.120/2016/NĐ-CP, effective from 1 January 2017. Accordingly, creative startup enterprises are normally small and medium-sized ones and will be subject for the application of the 17% CIT (corporate income tax) rate from 2017 to 2020.

Secondly,  the credit policies were available for startup enterprises, including credit incentives, interest rate support, guarantees by the Vietnam Bank for Social Policies for loans from credit institutions, and the SME Development Fund, which is applicable for startup enterprises satisfying requirements  on  SME’s  labour  or  capital scales  or  meeting  criteria  of  a  creative enterprise [8].

Thirdly, the model of the entrepreneurial incubator in some preferential sectors like science  and  technology  was  available  to assist  the  newly  established  enterprises. Accordingly, the State supported the establishment  and  operational  funding  for public incubators and provides tax incentives, such as CIT, import tax, VAT, PIT etc. for the      incubators. Generally, the policies supported startup enterprises step by step by creating channels of capital mobilisations for the enterprises and, therefore, contributed an important part to minimising the starting-up risks and increasing the possibility of survival and growth [2], [3].

Regarding direct policies for the startup ecosystem,  the  Government  has  approved the plan "Supporting the National Innovative Startup  Ecosystem until  2025" with Decision No.844/QD-TTg. The purpose of   the   plan   is   to   create   a   convenient environment for supporting and promoting the   establishment   and   development   of enterprises with high-growth potential which are based on the exploitation of intellectual properties,  technology,  and  new  business models;   to   urgently   improve   the   legal framework     for     supporting     innovative startups; to establish the national innovative startup portal; to support 800 projects and 200    startup    enterprises,    including    50 enterprises  which  successfully  called  for investments from venture capitalists through merger  and  acquisition  with  the  estimated total   value   of   VND   1,000   billion   [1]. According to that, by 2020, the plan will support the development of 2,000 innovative startup   projects,   600   innovative   startup enterprises, 100 enterprises participating the plan successfully call for investments from venture capitalists, implementing acquisition and merger, with the total estimated value of VND 2,000 billion.

 

3.3.2. Market access

+ Local market access

The GEM research divides entrepreneurial activates   into   four   categories: mining, processing, business services, and customer services. According to the classification, the majority of business activities, regardless of their  stage  of  development,  are  geared towards the consumer.

The  GEM  Vietnam  2015/2016  showed that the proportion of startups with customer- oriented activities accounted for 74.5%, much higher than the average rates of factor-driven and efficiency-driven countries. Meanwhile, the proportions of business activities in the other  categories  were  all  lower  than  the average rates of countries with the same level of development [7].

The   GEM   2015/2016   Global   Report allocated  startup  entrepreneurial  activates by economic  sectors,  by  which  it  clearly showed  the  differences  in  entrepreneurial sectors  in  each  development  stage.  The proportion  of  entrepreneurial  activities  in services  was  highest  in  innovation-driven economies,  especially  supporting  services for  business  and  individuals.  In  factor- driven  economies,  the  rate  of  business startups in the service sector is always the lowest, while the highest rate belongs to the commercial sector (wholesale/retail) [7].

This situation was also taking place in Vietnam, a factor-driven economy. Notably, the  rate  of  startup  entrepreneurs  in  the wholesale/retail sector in Vietnam accounted  for  71.2%,  while  the  service sector rate was only 9.6%, compared to the average rate at 15% of other factor-driven economies.   Therefore,   Vietnam   should encourage startup entrepreneurs in services, especially services for business development, information/communication        technology, and financial services to shift to a higher stage of development.

+Global market access 

According to the GEM Vietnam 2015/2016, among early-stage entrepreneurial activities, up to 80.4% of business activities operated   only  in   the   domestic   market, 18.2% of business activities had a foreign customer  engagement   of  less  than  one fourth.  The  business  activities  which  had 25%   foreign   investors   or   above   only accounted for 1.5%. In comparison to other factor-driven economies, the percentage of early-stage entrepreneurial activities engaging in  export  in  Vietnam  was  lower  (19.7% compared    to    24.2%),    particularly   the percentage of activities which are import-orientated  with  the  proportion  of  foreign customers of 25% upwards was much lower (1.5% compared to 5.7%) [7].

While foreign projects mainly outsourced the early technology enterprises in Vietnam or   focused   on   the   domestic   market, entrepreneurs   currently   start   to   provide products towards the international market, even at the early stage of establishment.

 

3.3.3. Human resources and workforce

According to an assessment of the World Bank,  the  quality  of  Vietnam’s  human resources was marked 3.79 points out of 10, ranked the 11th in the 12 surveyed countries in  Asia,  whereas  South  Korea,  India  and Malaysia  achieved  6.91,  5.76,  and  5.59 points respectively. It can be seen from the assessment that Vietnam’s human resources are    weak  regarding quality, lack of dynamism, creativity, innovation, and industrial working style.

The  labour  competitiveness  index  of Vietnam is only 3.39 out of 10. This signal shows  that  Vietnam  had  a  shortage  of skilled and high-level technical workers. Of the more than 53.4 million employees aged 15 and above, only about 49% are trained, of  which  those  having  three  months,  or more vocational training accounted for only about 19%. Additionally, a large number of employees   have   not   been   trained   in industrial    work-disciplines, especially regarding   working   time   and   manners. Workers   had   not   been   equipped   with relevant  knowledge  and  teamwork  skills, lacked cooperative, and risk-sharing skills were  afraid  of  promoting  initiatives  and sharing the working experience with others.

Meanwhile, given the ASEAN Economic Community (AEC) was launched at the end of   2015,   along   with many free trade agreements  between  Vietnam  and  other countries, the labour market in the region was  gradually  becoming  identical.  In  the near future, the territorial boundaries in the labour  market  will  be  removed,  giving opportunities for qualified, skilled workers to  move  and  find  jobs  matching  their abilities   and   needs. Mutual   recognition agreements on professional standards, qualifications and skills will be important tools for professional mobility.

 

3.3.4. Sponsorship and Funding

In March 2015, Coc Coc (Cốc Cốc), a startup enterprise   founded   by   three   Vietnamese programmers, received an investment of 14 million USD from a German media group named  Hubert  Burda  Media  and  private investors.  Ten  million  USD  came  directly from Hubert Burda Media, and the remaining came from other investors, including senior managers   of   Hubert Burda   Media   as individual investors. CyberAgent, a Japanese fund,   also   poured   more   money   in   the VeXeRe  joint  stock  company  which  is  a startup project in the field of technology for operating an online passenger ticket booking system. Although the invested amount was not disclosed, CyberAgent is a familiar name in Vietnam with a number of investments into newly formed companies, including Tiki and NCT.   Startup   enterprises   which   received investments in 2016 included Momo (USD 28 million), GotIt! (USD 9 million), VnTrip (USD 3 million), Kyna.vn, batdongsan.com, Triip.me, Beeketing, OnOnPay, iMap, Fundy, Meete, MimosaTek, and Vooy. In June 2016, Mekong  Angel  Investor  Network  (MAIN) officially launched the Startup Fair in Danang with  the  goal  of  annually  attracting  1000 foreign   angel   investors   to   explore   the Mekong                       river  downstream     countries (including  Vietnam,  Laos,  Cambodia,  and Myanmar).  This  initiative  was  expected  to bring  significant  changes  to  the  regional startup ecosystem, because investors would support entrepreneurs with the entrepreneurial operation experience and the vast network of their own, in addition to capital.

The  sponsorship  and  funding  status  of Vietnamese entrepreneurial ecosystem seemed to  be  vibrant,  but  most of the Vietnamese startup entrepreneurs received   investments from overseas, rather than domestic sources.

 

3.3.5. Some existing problems

Since  the  startup  ecosystem  has  quickly developed with new components, the legal framework,  policies  and  mechanisms  are unable   to   adapt   timely   to   govern   the establishment and development of startups in new forms, such as the Vietnam venture investment   fund   or   the   recognition   of monetary  value   of   intangible   assets   as capital  contribution  while  establishing  a company or intellectual property protection for startup enterprises.

Vietnam  is  lacking  a  legal  framework governing the startup funding, and an official venture fund established by the Vietnamese Government. Implemented measures on financial support and funding are still small programmes  and  small  funds  which  create little   impact. The lack of a strategic orientation for current existing funds results in human capital flight and financial bleeding, as startup entrepreneurs are receiving investments from foreign funds have to accept provisions set by the investors, or they may move their companies out of Vietnam to get a better business environment.

Besides, the credit policy is difficult to access as most of the startup enterprises at their initial stage are small and super small- sized with tiny endogenous capital and their assets  as  collateral  for  bank  loans  are virtually  none.  Additionally,  due  to  the high-risk   nature   of   startup   enterprises, especially   innovative   ones,   it   is   quite difficult  to  get  access  to  the  traditional channel  of  capital  mobilisation  such  as commercial     banks.  Another important existing issue relates to Vietnamese human resources:  If Vietnamese workers are unable to  adapt  to  perfecting  their  knowledge, skills,  and  foreign  language  proficiency, they  will  not  catch  up  with  the  regional level, and even be losers in Vietnam.

 

4. Solutions for startup ecosystem development in Vietnam

4.1. Policies and legal framework

Vietnam  should  thoroughly  understand  its national strengths and weaknesses to come up with key strategic policies for the development of the national startup ecosystem. The State should steadily continue the policies to stabilise the macroeconomy, curb inflation, and build up the confidence of businesses  and  startups.  Policies  should  be easily predictable for entrepreneurs to draw their entrepreneurial plans. The enforcement of the policies should be monitored to ensure proper implementation of authorities in line with the policy requirements set out.

Policies  on  tax,  finance,  immigration, and startup promotion should be looser and more developed, friendly towards startups, facilitating the development   of   startup enterprises  and  enabling  them  to  access more  venture  funds  and  angel  investors, thereby having opportunities of development, especially  getting  closer  to  the  stages  of capital   return/divestment.   Business   and startup  barriers  should  be  removed,  and policies  should  be  transparent  to  enable entrepreneurs  to  access  information  and technical and financial support.

Vietnam needs to continue to create an equal competitive environment for economic sectors to avoid any discrimination among citizens when accessing   resources   for businesses and startups. Vietnam also needs to  build  a  focal  agency  to  help  startup enterprises  easily  access  business  support programmes. Establishing creative innovation funds  and  programmes  to  encourage  the innovation of startups can be a solution to maintain  the  flame  of  entrepreneurship, creativeness, and innovation. Additionally, it is necessary to strengthen the publicity of successful     entrepreneurs,  who     steadily follow  their  entrepreneurial  goals,  and  to understand  how  to  overcome  difficulties during  startup  while  remaining  dynamic and innovative in their field.

 

4.2. Market access

Vietnam  needs  to  improve  its  business infrastructure, especially the transportation system, wastewater treatment, and industrial  zones.  The  Government  should strengthen the provision of information on integration commitments so that entrepreneurial activities may have a higher international  orientation. The  concept  of startups  is  still  new  to  Vietnam's  market with many opportunities in place. Therefore, startup   enterprises   and   the  Government need  to  focus  both  on  approaching  the domestic  and  foreign  markets  with  more potential  which  may  help  to  develop  a stronger startup ecosystem.

 

4.3. Human resources and workforce

An  important  solution  regarding  human resources  is  to  develop  the  high-school curriculum   in   the   direction   of   training creative, independent and teamwork skills. At the same time, it is possible to gradually introduce  knowledge  about  business  and entrepreneurship  to  equip  students  with early career  orientation  for  the  future.  In addition, it is necessary to develop business training  programmes  at  universities  and colleges,   instruct   students   of   technical schools  and  vocational  schools  to  create their jobs by combining technical expertise to start a business.

Training on innovative entrepreneurship should  be  more  focused  to  help  young people facing practical issues with a more positive attitude, finding challenging opportunities  in  difficulties,  and  having confidence  and  motivation  to  overcome them  by  introducing  valuable,  innovative solutions.  It is necessary to further invest in human   resource   quality,   ensuring   the availability of human capital in every sector and optimising its cost performance.

It is advisable to popularise the programme on “Startup Awareness” so that ndividuals can  self-assess  their  starting  conditions;  develop  training  courses  on  startup  skills for  the  people,  especially  youth  groups.

Attention     should     be      paid     to     the phenomenon  that  top  students  prefer  to access stable positions at larger corporations  rather  than  work  at  start-up enterprises. Ministries and universities should have measures such as propaganda, teaching, showing proofs and opportunities to change the mindset of the students in job searching,  reducing  risk-averse  mentality and the lack of entrepreneurship.

 

4.4. Sponsorship and Funding

In addition to establishing and effectively operating startup and SME support funds, it is necessary to have mechanisms in place to encourage  the  development  of  a  private model of startups, including venture funds, angel funds, funds mobilising capital from the  public  to  meet  the  funding  needs  of startup activities. Operations of the technological   innovative   support   funds should  be  promoted,  at  the  same  time strongly  marketing  innovative  technology projects supported by international donors.

The  development  of  financial  services should  also  be  consistent  with  business activities  in  each  stage,  including  seed, startup, and stable growth. It is advised to encourage   the   establishment   of   private investment  funds  and  venture  funds  to enable  startup  enterprises  to  shift  their business to manufacturing, supporting industries     and     business      development services;  step  by  step  building  a  rational economic structure to develop Vietnam into an efficiency-driven country.

Vietnam   should   continue   to   develop technology-based startup incubation centres strongly. At present, Vietnam has a number of incubation centres which only received the attention of the Ministry of Science and Technology. So far, provinces have not paid attention to this model despite its significant role in supporting startup enterprises in the initial stage of development.

 

5. Conclusion

Vietnam  is  joining  the  dynamic  wave  of startups over the world. Despite its infancy and   remaining   challenges,   the   rise   of Vietnam’s startup ecosystem over the years and the efforts of the Government, investors, and startup enterprises in improving  the  national  startup  ecosystem cannot be overseen.

To strongly and comprehensively develop a startup ecosystem, it is necessary to focus on all of its components, which   are governmental policies and legal framework, market    access, human resource   and workforce, sponsorship and funding, supporting and advising systems, education and training, and universities which act as the catalyst and cultural supporter.   The article only focused on four of the eight components of Vietnam’s startup ecosystem recently and proposed  some respective solutions to continue   perfecting   and   developing   the startup  ecosystem  in  the  country.  In  the following research, the author hopes to give a more   comprehensive   insight   and   overall solutions to  direct the      sustainable development of the startup ecosystem.

 

Notes

1 The paper was published in Vietnamese in: Những vấn đề kinh tế và chính trị thế giới, số 7, 2017. Translated by Nguyen Thu Phuong, edited by Etienne Mahler.

2  Countries  at  the   first   stage  of  development, including  countries  whose  competitiveness  mainly depends  on  input  resources,  such  as  labours  and natural resources.

3  Countries at the second stage of development. A country will move to the stage of efficiency-driven development  when  the  manufacturing  process  is better developed, and product quality is improved.

 

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[8]   Quốc hội (2017), Luật Hỗ trợ doanh nghiệp nhỏ và vừa. [National Assembly (2017), Law on Supporting Small and Medium-sized Enterprises].

[9]   Nguyễn Thu Thủy, Cao Thị Minh Hảo (2017), “Hệ sinh thái khởi nghiệp - một số kinh nghiệm quốc tế và bài học cho Việt Nam”, Tạp chí Kinh  tế  đối  ngoại,  số  95,  tr.23-37.  [Nguyen Thu   Thuy,   Cao   Thi   Minh   Hao   (2017), “Entrepreneurial  Ecosystem,  Some  International Experiences and Lessons Learnt for Vietnam”, External Economics Review, No. 95, pp.23-37.]

[10]  World Economic Forum (2014), Entrepreneurial Ecosystems Around the Globe and Early-Stage Company Growth Dynamics.

[11] https://medium.com/@alltopstartups/bill-gross- founder-of-idealab-reveals-the-single-biggest- reason-why-startups-succeed-backed-by- 90e1e41a2b96, retrieved on 6 July 2017.

 

Sources cited: Vietnam Social Sciences, No. 2 (190) - 2019



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