HCM City seeks to improve mechanisms for innovation, start-up development

Speaking at a meeting on Thursday, Phan Văn Mãi, chairman of the municipal People’s Committee, said, “HCM City is committed to creating a supportive environment for start-ups to thrive and contribute to the city’s development as a regional and international innovation hub.”

The start-up ecosystem in Việt Nam, particularly in HCM City, is forming and growing rapidly, he added.

With the goal of becoming a regional hub for innovation and start-ups, the city has implemented policies to support entrepreneurship and innovation, with a focus on building a supportive ecosystem for start-ups, he noted.

Phan Văn Mãi (standing), chairman of the municipal People’s Committee, speaks at a meeting on Thursday with the start-up and innovation community in HCM City. VNA/VNS Photo

The HCM City Centre for Innovation and Entrepreneurship currently plays a major role in leveraging resources from domestic and international markets to support start-ups.

There are about 100 incubators and organisations supporting start-ups nationwide across 20 localities, mostly in HCM City.

The city will continue to listen to feedback from the innovation community to enhance mechanisms and policies for fostering entrepreneurship and innovation, according to Mãi.

Nguyễn Việt Dũng, director of HCM City Department of Science and Technology, spoke about a project to improve the entrepreneurial and innovation ecosystem in the city to connect resources within and outside the country.

Thanks to the Government’s project on supporting national innovative start-up ecosystems and practical city policies, HCM City now ranks at the 113th position out of 1,000 cities worldwide in terms of innovative start-up ecosystems, he noted.

Financial support

HCM City authorities recently announced financial support for innovative start-up projects to enhance the sustainable growth of the start-up ecosystem in the city.

The city will offer financial assistance to start-ups in three stages: pre-incubation, incubation, and acceleration.

During the pre-incubation stage, start-ups will receive VNĐ40 million (US$1,620) per project for up to six months. Of this, VNĐ10 million ($405) is allocated for labor wages and VNĐ30 million ($1,215) for other expenses."

In the incubation stage, start-ups will receive VNĐ80 million ($3,240) per project for up to one year, with VNĐ30 million ($1,215) for labour wages and VNĐ50 million ($2,025) for other expenses.

During the acceleration stage, start-ups will receive VNĐ400 million ($16,200) per project for up to one year, with VNĐ150 million ($6,070) for wages and VNĐ250 million ($10,130) for other expenses.

The city People’s Council last year approved a National Assembly resolution outlining policies, priority fields, and support levels for innovative start-up projects in the city.

The resolution covers individuals, groups, and businesses with innovative start-up projects in priority fields such as e-commerce, financial technology, logistics, educational technology, healthcare, high-tech agriculture, sustainable development, digital transformation, and cyber security.

Criteria for selecting innovative start-up projects for financial aid this year include innovation, implementation capability, socio-economic effects, market potential, and business model.