Vietnamese startups hope to no longer have to take detours

With Resolution 68, many startups are expected to make a breakthrough thanks to support policies for the private economy - Photo: FT

However, in order for the policy to truly come into life and create motivation for all fields, especially creative startups, according to experts, there needs to be specific policy mechanisms to encourage the establishment of venture capital funds in Vietnam.

From there, a venture capital ecosystem was gradually formed, attracting domestic and international investment capital.

Breakthrough ideas with the potential to change the market always come with high risks. Therefore, not only businesses but also the State needs to accept risks through establishing mechanisms to support venture capital, from angel capital, venture capital funds to banks and stock exchanges.

Mr. Nguyen Huu Phuoc Nguyen (co-founder and CEO of Se

Need a mechanism to encourage the establishment of venture capital funds to support Vietnamese startups

Speaking with Tuoi Tre, Mr. Nguyen Huu Phuoc Nguyen - co-founder and CEO of Selex Motors - said that the resolution is just the first step.

To realize this, the National Assembly and the Government need to quickly concretize it into clear policies and legal frameworks, focusing on solving core bottlenecks, including education reform, human resource training and especially unlocking capital sources - a vital factor for businesses.

According to Mr. Nguyen, capital is considered the "blood" of a business and for technology startups, not only capital but also venture capital is needed.

Meanwhile, one of the major challenges today is that venture capital is still mainly poured into Vietnamese startups through legal entities located in Singapore - a place with a transparent legal environment, low costs and simple procedures.

According to Mr. Nguyen, the whole country needs at least 100 domestic investment funds, not only to directly invest capital but also to create a spillover effect and attract more foreign capital.

In reality, the small number of domestic funds are still young and face many difficulties in raising capital due to the complex and outdated legal framework, which is not suitable for the specific characteristics of the industry. If domestic funds do not develop, attracting foreign venture capital funds will be even more difficult, leading to stagnation of the entire ecosystem.

Another issue that makes investors hesitant is the possibility of exit. According to Mr. Nguyen, over the past decade, almost no Vietnamese start-up has successfully listed on the stock exchange. This narrows the investment life cycle, affects the ability to recover profits and reduces the motivation to invest in start-ups.

"In markets like the US, China or India, even loss-making startups can still list if they have a potential business model.

Access to the stock market not only helps startups raise capital but also opens up opportunities for existing investors to withdraw capital, thereby continuing to reinvest in new generations of businesses," Mr. Nguyen affirmed.

Must build venture capital ecosystem

Many experts believe that the capital market in Vietnam is not lacking but is being misallocated and exploited inefficiently. A large part of the money flows into real estate, real estate prices are inflated far beyond their real value, leading to speculation and many social consequences.

"The banking system mainly relies on real estate as collateral, making it difficult for manufacturing or science and technology enterprises that do not have collateral to access capital for development," said an expert.

Meanwhile, domestic venture capital (VC) funds are still young with small numbers and face many difficulties in raising capital due to complex and outdated policies and mechanisms.

If domestic funds do not develop, attracting foreign venture capital funds will be more difficult, leading to stagnation of the entire ecosystem. Therefore, there needs to be a mechanism to encourage and attract the establishment of VCs in Vietnam to form a venture capital ecosystem.

"A strong, synchronous venture capital ecosystem for every stage of business development is the decisive factor for Vietnam to be able to produce its own 'Apple, Google or NVIDIA'," Mr. Nguyen said, adding that companies like Apple, Google, Facebook or NVIDIA can only develop thanks to the support of venture capital at every stage, from inception to listing on the stock exchange.

This ecosystem includes angel capital, venture capital funds, banks and the stock market, closely combining domestic and international capital sources. "Vietnam needs to learn from this model, aiming to build a strong domestic venture capital ecosystem to attract foreign capital, instead of forcing Vietnamese startups to register abroad," said an expert.

According to experts, if there are domestic VCs, foreign VCs and foreign capital will be attracted to participate. In addition, there needs to be a mechanism for startups to be able to list on the stock market more easily.

In the past 10 years, Vietnam has had almost no successful start-ups listed on the stock exchange. "If start-ups cannot divest, investors will not make a profit, and investment funds will lose motivation to invest in Vietnamese start-ups," an expert warned.

Innovation in traditional sectors needs support

Many businesses believe that innovation lies not only in technology but also in new ways of making and improving products or business models. Meanwhile, appraisals often focus on technological factors, leaving many businesses in other fields at a disadvantage.

According to Mr. Doan Tuan - Investment Director of Beta Group, with high-tech fields such as artificial intelligence (AI), IoT... it is often easy to demonstrate creativity thanks to products or solutions that can be seen and measured. However, with traditional industries such as agriculture, aquaculture or food, demonstrating creativity is a difficult problem.

"How can businesses in traditional fields, where innovation lies in processes, methods or business models, access support policies? If this problem is not solved, many innovative businesses in industries such as agriculture, food and seafood will be left behind," said Mr. Tuan.

* Ms. Nguyen Nha Quyen (Operation Director of Vietnam Science and Technology Startup Fund - SVF):

Ms. Nguyen Nha Quyen (Operations Director of Vietnam Science and Technology Startup Fund - SVF)

Create a favorable space for businesses to invest with confidence

Resolution 68 creates strong momentum for entrepreneurs, especially in the field of innovation and the business community.

It not only inspires confidence and affirms the important role of the private sector but also creates a favorable space for them to confidently invest and develop in the future.

However, to put the resolution into practice requires long-term efforts and synchronous coordination among agencies and sectors.

Effective implementation will determine the level of success in turning these expectations into reality, thereby promoting the private sector to become the main driving force of the economy.

* Mr. Nguyen Xuan Dong (Business Development Director of Funtap Company):

Mr. Nguyen Xuan Dong (Business Development Director of Funtap Company)

Opening up breakthrough space in AI, blockchain

Resolution 68 is not only a policy but also a "strategic blueprint" for the future of the startup ecosystem, with a huge and substantial impact on our work and business activities.

In particular, the resolution mentions specific solutions to promote innovation, from policy incentives to institutional support.

One of the highlights is the regulatory sandbox, an environment that allows startups to test new business models, products or technologies without having to comply with all the strict legal regulations from the start. This is not a direct tax incentive but an extremely important indirect boost.

It helps start-ups significantly reduce compliance costs, shorten time to market and, most importantly, opens up space for innovative breakthroughs in new areas such as AI, blockchain or fintech. If this resolution is effectively implemented, it will create a strong wave of investment from large enterprises in innovation.

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Source: https://tuoitre.vn/start-up-viet-hi-vong-khong-con-phai-di-duong-vong-20250508063149625.htm