Decree 264 - The 'key' to helping Vietnam realize its goal of 1 million startups.

DNVN - The promulgation of Decree 264 is expected to create a turning point in attracting investment capital into the science and technology market, innovation, and promoting the formation of innovative startups in Vietnam.

Mr. Truong Viet Dung - Vice Chairman of the People's Committee of Hanoi City.

Investor concerns

Speaking at the National Policy Forum on International Cooperation for Investment in Innovative Startups on December 13th, Mr. Truong Viet Dung, Vice Chairman of the Hanoi People's Committee, stated that Vietnam is entering a new era with the goal of double-digit growth. Hanoi currently has a growth rate of approximately 8%, with an economic size of around US$63.5 billion. The target is to achieve a growth rate of US$11 billion per year by 2029-2030.

"To achieve this goal, we cannot rely solely on public investment, credit capital, or resource exploitation, but must rely on science and technology and innovation," said Mr. Truong Viet Dung.

Studies of international experience, including that of the United States, show that innovation only arises when there are mechanisms for intelligently and controlledly accepting and absorbing risk. In this context, venture capital plays a central role in helping to form globally competitive technology companies.

Discussions aimed at promoting tripartite investment cooperation: International financial institutions - State-owned venture capital - Private venture capital.

However, Paulo Andrez, honorary chairman and European angel investor, pointed out the reality that 50% of startups do nothing three years after the idea is conceived. According to Andrez, the reason is that startups fear failure, and investors are hesitant to invest in startups because of this "fear of failure."

"To develop startup businesses and achieve the goal of 1 million startups, we need to address the fear of failure and minimize risks for startups," Paulo Andrez emphasized.

Resolution 264 - the answer to investors' concerns.

Mr. David Lewis - Chairman and CEO of Energy Capital Vietnam.

Taking Quickcast as an example – a technology company that uses AI to analyze real-time data and help warn of risks – David Lewis, Chairman and CEO of Energy Capital Vietnam, said that while they are very successful in the US, they face many obstacles in Vietnam. Domestic energy companies need to optimize operations but are concerned about the risks of piloting new technologies. Meanwhile, domestic venture capital funds lack the capital and depth to absorb those risks. Without an intermediary mechanism, deep tech technologies like these will struggle to take root.

According to David Lewis, Decree 264 has helped large companies/businesses share financial risks and provided an open mechanism, giving them confidence to implement pilot projects. Once the pilot projects are successful and the technological risks are verified, the door will open for private capital.

"Once the pilot program is successful and the technological risks are assessed, these businesses will enter the 'investment zone,' opening the door for private capital to flow in," David Lewis emphasized.

Resolution 264 represents a shift in mindset as the government accepts risks and participates in investment alongside the private sector.

“Decree 264 on the establishment of venture capital funds at the national and provincial levels marks a historic milestone. This decree allows the state to act as an investor in venture capital investments. This is a commitment by the Vietnamese government to inject real resources, helping to mitigate risks for investors and clearly defining the government's priorities,” commented David Lewis.

International experts highly appreciate the role of Decree 264 in developing Vietnam's startup and innovation ecosystem.

To ensure Decree 264 is truly effective, David Lewis offered four recommendations. First, promptly issue guiding circulars for Decree 264. Second, establish a Sandbox mechanism for investment funds, focusing on energy and AI. Third, encourage state-owned enterprises to open their data infrastructure to serve as "testing beds" for startups. And finally, provide tax incentives and access mechanisms to the public procurement market for leading technology sectors.

With the commitment and support of the government in general, and Hanoi in particular, the speakers all believe that in 20 years, "we will no longer be asking how to attract capital, but instead how to manage the enormous flow of capital into Vietnam," creating a solid foundation for the brilliant development of the innovation ecosystem in our country.

Hien Thao

Source: https://doanhnghiepvn.vn/cong-nghe/nghi-dinh-264-chia-khoa-giup-viet-nam-hien-thuc-hoa-muc-tieu-1-trieu-startup/20251213122017022