Fill the gap, create a startup launch pad

Expected to be the core of the startup ecosystem, the number and capacity of incubators in Vietnam are still low, unable to meet the needs of hundreds of thousands of businesses. Meanwhile, digital transformation is fundamentally changing the way startups operate and expand connections.

Representatives of MedCAT Joint Stock Company introduce products at the 6th Vietnam National Forum on Digital Technology Development. (Photo: MEDCAT)

For incubators to truly become launch pads, it is necessary to quickly fill the gaps in institutions, resources and operating mechanisms, aiming at the goal of Resolution No. 57, aiming to bring Vietnam to 5,000 startups and into the top 100 global startup ecosystems by 2030.

Enterprises join in, expanding incubation space

Resolution No. 57-NQ/TW identifies science, technology, innovation and digital transformation as pillars of development, in which incubation centers play an important role.

In recent times, digital transformation has created significant changes in the way businesses operate, helping businesses and startups overcome geographical limitations thanks to the online incubation model, while expanding multi-dimensional connections with investors, experts and international partners.

According to Mr. Nguyen Thanh Hong, Director of the Department of Science and Technology of Da Nang City, the government has issued many specific policies to implement Resolution No. 57. Resolution No. 53 of the City People's Council stipulates priority areas, criteria, conditions and procedures for start-up activities, and at the same time exempts taxes for qualified enterprises and organizations.

Concrete steps such as Da Nang launching the VND1,800 billion semiconductor Fab-Lab or Ho Chi Minh City putting into operation the Creative Startup Center show that Resolution No. 57 has come into life with clear launch pad models.

Students of Hanoi University of Science and Technology practice in the laboratory. (Photo: THU TRANG-HOAI THU)

This is also a similar direction to Singapore when developing "innovation hubs" or Korea building centers of excellence, affirming that Vietnam is integrating in the right direction.

Dr. Pham Hong Quat, Director of the Agency for Startups and Science and Technology Enterprises (Ministry of Science and Technology), said that in recent years, Vietnam has recorded remarkable progress in startups and innovation. The strong development of digital technology, online platforms and the sharing economy model has opened up many new industries with a scale far exceeding traditional fields.

Some typical examples include VinFast in electric vehicles, FPT with AI and software serving digital transformation and green growth. Currently, the country has about 4,000 innovative startups, including unicorns and many hundred million USD enterprises, focusing on strong areas such as educational technology (edtech), financial technology (fintech), e-commerce and blockchain.

Incubation centers are gradually becoming a launching pad for startups in the digital transformation era, but sustainable development still faces many challenges. MedCAT is an example with accurate medical data products, aiming at a digital healthcare-insurance ecosystem.

However, General Director Dang Thi Anh Tuyet admitted that Vietnamese startups like MedCAT still face difficulties due to lack of capital, legal corridors and market support, especially in valuation and protection of intellectual property.

Another example is Coc Coc, a company that grew from a startup ecosystem, with over 30 million users, currently ranked in the top 2 most popular browsers. This is a “golden time” for Vietnamese technology when innovation is placed at the center of the national strategy.

However, "the problem of high-quality human resources in key fields such as artificial intelligence, semiconductors, and the Internet of Things remains a big challenge, requiring additional policies to support research and development and venture capital," said Coc Coc Deputy General Director Mai Thi Thanh Oanh.

From a management perspective, Mr. Nguyen Mai Duong, Director of the Department of Innovation (Ministry of Science and Technology) proposed that each ministry, branch and locality should have at least one innovation center, striving to reach more than 100 centers by 2025-2026, forming a network to support businesses in technology transfer, connecting experts and expanding international cooperation.

However, to turn these goals into reality, we need to look directly at the current shortcomings and weaknesses of the central system. The number of innovation centers is still very small, with limited operations and a lack of resources.

If the target is to support one in every 10 businesses, Hanoi alone will need hundreds of centers distributed throughout the city, instead of just counting on the fingers as at present.

Regarding this issue, Mr. Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), frankly said that the problem does not lie in the seating, but in building an ecosystem where businesses can meet, connect, find consultants and investors.

To bridge the gap, he proposed utilizing more than 4,200 surplus public headquarters after merging two-level governments into a network of business support centers, a solution that saves time and costs compared to building new ones.

At the same time, it is necessary to upgrade centers equivalent to department level, have open leaders who understand businesses and consider universities and research institutes as core resources, where research results can be commercialized.

Three pillars determine resilience

Practice shows that a sustainable startup ecosystem cannot rely solely on enthusiasm and ideas, but requires three pillars: Institutions, capital, and human resources. These three factors must be closely linked to create momentum.

First of all, institutions play a fundamental role. Completing the legal corridor, especially implementing a sandbox mechanism for new technologies such as artificial intelligence, chips, fintech, and blockchain, will pave the way for public-private cooperation, promote commercialization of research, and remove barriers for businesses.

Deputy Minister of Science and Technology Hoang Minh emphasized that the current focus is on building a national innovation system, connecting universities and research institutes with businesses, developing support centers and spreading the culture of "Startup Nation", aiming for the goal of having 40% of businesses innovate by 2030.

Along with that is the development of intermediary organizations such as incubators, expanding investment funds, connecting high-tech zones in Hanoi, Da Nang, Ho Chi Minh City, Can Tho to attract foreign direct investment, forming industry clusters, technology value chains. Along with institutions, capital needs to be deployed through venture capital funds, innovation funds, young talent funds, along with public-private partnership mechanisms, credit incentives, ensuring stable resources for businesses.

According to experts, this is the key to bringing ideas from the lab to the market, reducing risks, and encouraging large corporations to order solutions from startups. Besides institutions and capital, human resources are the deciding factor.

Professor, Dr. Le Anh Tuan, Chairman of the Council of Hanoi University of Science and Technology, said that for start-up businesses to succeed, there needs to be strong legal documents and transparent financial mechanisms so that institutes and schools can confidently cooperate with businesses.

Training high-quality human resources in key fields such as artificial intelligence, semiconductors, and the Internet of Things is an urgent task, while flexible policies are needed to attract talent and pay salaries to turn educational institutions into innovation centers.

The “three-party” linkage model - the State, schools, and businesses - must be strongly promoted to bring research products to the market. Therefore, it is necessary to innovate thinking, spread startup culture, develop digital infrastructure, and improve legal regulations for new products.

Dr. Tran Van Khai, Vice Chairman of the National Assembly's Committee on Science, Technology and Environment, said: It is necessary to improve the business environment, simplify procedures for establishing science and technology enterprises, registering patents and trademarks, and at the same time promote the role of incubators and startup acceleration programs.

Milk production technology according to modern standards at Vinamilk.

Only when the three pillars of institutions, capital and human resources are deployed synchronously, can incubators become the core connecting the “three houses”. Only then can the Vietnamese startup ecosystem make a breakthrough, aiming for 5,000 startups and entering the global top 100 by 2030, not only an economic goal but also an aspiration for a digital startup nation.

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Source: https://nhandan.vn/lap-day-khoang-trong-tao-be-phong-khoi-nghiep-post909043.html