Promoting innovative startups in the cultural sector in Vietnam today

TCCS - With a long tradition of thousands of years and a rich and diverse cultural heritage, Vietnam has great potential for innovative startups in the cultural field. However, the exploitation and utilization of potential and strengths for innovative startups are not yet effective. It is necessary to propose solutions to create "room" for startup investment, exploitation and enrichment from culture.

Potential for innovative startups in the cultural sector in Vietnam today

Innovative start-up is a process based on creative ideas, creating new products or old products but with outstanding and superior features compared to products and services that have existed on the market and are developed rapidly. An innovative start-up is a business that has the ability to grow rapidly based on exploiting intellectual property, technology, new business models, with an operating period of no more than 5 years from the date of being granted the first business registration certificate ⁽¹⁾ . Evaluating an innovative start-up does not only look at the business field or the amount of capital they have, but also at the growth and revenue of that business.

Startup activities cannot be maintained and developed sustainably without the cultural aspect. On the contrary, culture will become an effective business product and service for innovative startup activities. Startup activities contribute to generating income from exploiting cultural values, and at the same time are an effective tool to preserve, maintain and promote traditional cultural values.

Art program "Hoi An - colors of silk" - Cultural tourism product is elaborately staged on the basis of installation art, music , light, dance and fashion show _Source: vietnam.vnanet.vn

Innovative start-up activities in general, and innovative start-up activities in the cultural field in particular, have received special attention from our Party and State. Since 2016, our Party and State have advocated launching a national start-up movement, building a creative government to foster start-up dreams, and nurturing unicorn startups (startups valued at over 1 billion USD). In order for culture to become a resource for national development, the Document of the 13th National Party Congress affirmed: "Urgently deploy focused development of the cultural industry and cultural services on the basis of identifying and promoting the soft power of Vietnamese culture" ⁽²⁾ ; at the same time, it is necessary to: "Build a legal framework and a favorable environment to promote development, start-ups, innovation, digital transformation, and digital economic development; support and encourage the emergence and operation of new fields and new business models" ⁽³⁾ . These are important orientations to form and stimulate innovative start-up activities based on cultural foundations in the current period.

In order for the resolution to come into practice and be implemented into practical actions, many mechanisms and policies related to innovative startups have been issued, such as: Decision No. 844/QD-TTg, dated May 18, 2016, of the Prime Minister, approving the Project to Support the National Innovative Startup Ecosystem until 2025, which details the support objects, which are individuals, groups of individuals with startup projects and businesses and organizations providing services, facilities, etc.; perfecting institutions, fully developing support policies for startups; Decision No. 1665/QD-TTg, dated October 30, 2017, of the Prime Minister, approving the Project to Support Students and Students in Startups until 2025; Decree No. 13/2019/ND-CP, dated February 1, 2019, of the Government, on science and technology enterprises; Decree No. 94/2020/ND-CP, dated August 21, 2020, of the Government, on Regulations on preferential mechanisms and policies for the National Innovation Center; Directive No. 09/CT-TTg, dated February 18, 2020, of the Prime Minister, on creating conditions for innovative start-up enterprises; Decision No. 897/QD-TTg, dated July 26, 2022, of the Prime Minister, approving the Youth Start-up Support Program for the period 2022 - 2030..., creating favorable conditions for the development of innovative start-up enterprises. At the same time, many state units and organizations playing a role in supporting innovation development were established, typically the National Agency for Science and Technology Enterprise and Market Development (NATEC), the National Center for Supporting Creative Startups (NSSC) under the Ministry of Science and Technology, the National Innovation Center under the Ministry of Finance, etc.

After 7 years of implementing the National Project to Support Innovative Startups to 2025 (Project 844), the Vietnamese startup ecosystem has gone through the stages of activation, globalization, attraction and integration, marking a record of investment receipt of up to 1.4 billion USD in 2021 ⁽⁴⁾ . To date, Vietnam has over 3,000 startups, more than 140 universities and research institutes organizing startup and innovation activities with incubators, centers and startup support clubs ⁽⁵⁾ . The current Vietnamese startup ecosystem includes all important components, such as individuals, startup organizations, investors, venture capital funds and startup support facilities. The connection between mechanisms, policies, finance, culture, market, human resources and other supports is increasingly close, strongly promoting entrepreneurship and innovation. The position of Vietnam's startup ecosystem is increasingly improving in the international arena.

In recent years, the emergence of innovative start-ups in the cultural field has increased, especially start-ups in the fashion field based on cultural heritage and sustainable development ⁽⁶⁾ . Many young people have overcome difficulties and successfully pioneered innovative start-ups in the cultural field ⁽⁷⁾ .

Many units supporting innovative startups across the country have been formed, from both the private sector, the public sector and international organizations, under many diverse models. Nearly 20 localities have been forming innovative startup support centers, nearly 100 incubators and business promotion organizations have been operating ⁽⁸⁾ , many international startup and innovation centers have opened branches or coordinated to open innovative spaces in Vietnam. The model of innovative startup support centers is diverse, with the participation of many parties, in many different ways, spreading from the central to local levels, from universities, research institutes, corporations to socio-political organizations, international organizations. Localities such as Da Nang, Hai Phong, Ha Tinh,... have become bright spots in attracting investment, contributing to improving the quality of creative startups, improving the business environment, and entering the list of creative startup ecosystems globally.

However, besides the results achieved, work Innovative startups in the cultural field still have many limitations.

Firstly , the attention and investment of resources for innovative startups based on cultural foundations have not received due attention. Attention seems to be directed only to startups in a number of promising fields such as economics, finance, information technology, trade, services, etc. Startups in the cultural field have not received adequate attention, while this is a field with a specific nature, if successful, can achieve dual goals of both economics and "soft power" for sustainable development.

Second , the total investment in innovative startups in Vietnam is still lower than in other countries. Only 20% of innovative startups in Vietnam bring new products and services to the international market ⁽⁹⁾ . Vietnamese startup projects are not attractive enough, not aiming at breakthrough products and services based on high technology and new inventions. In particular, doing business in the cultural field is difficult, complicated, and risky. The survival rate of innovative startups in the cultural field is usually only 5-10% after 3-5 years of operation. If in 2018, in Vietnam there were about 140 creative art spaces, by 2022 most of them had stopped operating and although new startups have appeared, these startups are at high risk of dissolution ( ¹⁰⁾ .

Third , access to finance for innovative cultural startups in Vietnam remains a major challenge, especially for the private sector. For startups, access to finance is a pressing issue, especially in the early stages. The World Bank (WB) 2023 Innovative Startup Survey Report shows that more than two-thirds of surveyed businesses said they had difficulty accessing finance. Similarly, nearly half of private sector businesses participating in the 2021 PCI survey mentioned such difficulties, a higher number than in 2017 (11 ⁾ .

Fourth , the development of the innovative startup ecosystem still shows some limitations due to the incomplete legal framework. The investment and business environment still has some "bottlenecks" that affect the mobilization of resources for innovative startups. The coordination between the components of the startup ecosystem, such as communication, policy reception, establishment and management of investment support funds and venture capital funds, is still lacking. There have not been formed synchronous and feasible solutions for startup linkage activities between universities, research institutes and startup incubators.

Fifth , management work Human resource management is mainly based on personal experience. Many startups lack professional staff in their team structure. New staff recruitment stops at selecting interns, new graduates, and those without much experience. Some startups use relatives or friends as staff, which in many cases can lead to conflicts and lack of unity in work. The implementation of digital transformation applications in startup activities is still slow.

The reasons for the above limitations are that the ideas and business models of startups are not suitable; the management level is still weak, there is no knowledge, business skills, and low innovation capacity. In addition, there are barriers in administrative procedures, difficulties in mechanisms and policies that cause startups to face many obstacles in the first steps of starting a business.

Some solutions in the coming time

To promote innovative startups in the cultural sector in Vietnam, it is necessary to focus on implementing the following solutions:

First, continue to build and perfect the legal system, creating a favorable legal framework for innovative startups in the cultural field.

Thoroughly grasp the Party's viewpoints and guidelines, the State's policies and laws to raise awareness among all levels, sectors, localities and society about the role and position of culture and innovative startups in the cultural field for socio-economic development. Continue to research and perfect the legal framework, creating the basis and premise to unlock resources and promote innovative startups in the cultural field in the period of international integration.

Propose flexible mechanisms and policies for start-ups in the cultural field, especially policies related to censorship, appraisal of works, intellectual property rights, etc.; support incentives on taxes, capital, premises, etc.; funding from funds, art sponsorship organizations, donations, etc. to facilitate creative activities, production, and trading of cultural products and services. Research and propose regulations on a certain investment rate for start-ups in the cultural field based on the total investment fund of each investor in a certain period of time, thereby promoting the reasonable distribution of investment resources among the fields. Add statistical indicators on the cultural industry to the national statistical indicator system, on the basis of which, issue appropriate investment policies and development roadmaps for the entire cultural industry in general and each cultural industry in particular. Review the current legal system on intellectual property protection, strengthen enforcement of regulations to improve the cultural market, and strengthen the trust of those working in creativity-based jobs.

Tourists visit and learn about the production of traditional Vietnamese handicraft products at the cultural space of Bach Nghe ward (Center for Research, Development and Application of Vietnamese Craft Village Products)_Photo: VNA

Second, build a startup ecosystem, creating a favorable environment for the formation and development of innovative startups in the cultural field.

It is necessary to create a suitable ecosystem for the startup community in the cultural field. Support creative complexes, co-working spaces, performance spaces, displays, exhibitions... Promote networking, knowledge exchange and practice in the professional community between universities, research institutes, clubs, creative incubators, businesses, the media, especially with "angel investors" interested in the cultural field. Implement Official Dispatch No. 3701/BKHCN-PTTTDN, dated December 20, 2021, of the Ministry of Science and Technology, on guidelines for the formation and development of innovation startup support centers at ministries, branches, localities, and organizations with potential to develop innovation startups; which emphasizes that the formation of innovation startup support centers must be based on internal resources and practical needs of the locality. It is necessary to orient the innovation and start-up support centers to become the core to connect and develop the local innovation and start-up ecosystem; to be the focal point to connect and exploit resources, and to link regionally, nationally and internationally. Form and develop an innovation and start-up community linked around these centers, and at the same time proactively interact, share and support innovation and start-up.

The cultural market is where the interaction between supply and demand takes place, in which cultural products and services are circulated and implemented in accordance with market rules. Innovative startups in the cultural field, if they want to succeed, must build a healthy, competitive cultural market. Currently, widespread copyright infringement, plagiarism, and copying are hindering the development of cultural industries, affecting the effective exploitation of the cultural market, and causing many risks for genuine producers and investors. Therefore, it is necessary to strengthen inspection, examination, and protection of copyright and related rights and obligations; and strictly handle violations. Timely reward and encourage successful startups that make practical contributions to the country's cultural development, and spread and replicate effective innovative startup models from the cultural field.

Third, improve the quality of human resources provided to innovative startups in the cultural field.

The center of innovation and entrepreneurship is people. The innovation and entrepreneurship environment in the cultural field of Vietnam is very dynamic and is developing rapidly. The level of success of young people in innovation and entrepreneurship depends on many factors, which are: (i) Level of understanding of the profession and passion for business activities; (ii) Personal strengths, understanding of national culture, ethics, lifestyle, customs, practices, beliefs and religions, language, literature and art; (iii) Positivity, proactiveness and creativity in business activities to be able to create new, different and highly adaptable products; (iv) The development of personal will, the ability to accept risks, dare to think, dare to do, dare to take responsibility, overcome all difficulties to reach the set goals; (v) Level of understanding of business law and related laws, forming and building good cooperative relationships, team building, finding partners and business skills; (vi) Ability to build brand, culture and business ethics; (vii) Level of understanding and application of modern technology, especially digital technology.

Human resources are one of the major challenges for startups in the cultural field. Therefore, in addition to innovating and improving the effectiveness of professional and technical training, it is necessary to pay attention to equipping knowledge and business skills in the cultural field, supplementing subjects on marketing, business administration, art education, market research, etc. To prepare human resources for innovative startups in the cultural field, it is necessary to actively innovate the goals, program content, and training methods of educational and training institutions nationwide. Strengthen infrastructure, equipment, and ensure material conditions for human resource training. Promote networking, knowledge exchange, and practice in the professional community between universities, research institutes, clubs, "creative incubators", businesses, press, media, and especially with investors interested in the cultural field. Improving the effectiveness of international cooperation in human resource training for innovative startups.

Fourth, organize innovative startup events well, effectively exploit digital technology to promote innovative startups in the cultural field.

Strengthen the organization of seminars and workshops on innovative startups. Organize exhibitions and display products and services of innovative startups in the cultural field. Promote investment connection activities between innovative startups in the cultural field. Increase activities connecting consultants, startup coaches, connecting human resources for innovative startups and other activities. Improve the quality of provincial-level innovative startup competitions to find national innovative startup talents, creating opportunities for Vietnamese startups to access technological knowledge and build effective business models. In particular, facing the Fourth Industrial Revolution, modern digital platforms, such as artificial intelligence (AI), machine learning, and blockchain, play an important role along with human creativity, knowledge, and intellectual property. Harnessing the power of digital technology will contribute to increasing the value of creative startup products from cultural and heritage foundations.

Innovative startups in the cultural sector face many opportunities as well as difficulties and challenges that need to be overcome. Solutions to promote innovative startups need to be implemented in a unified and synchronous manner to strongly promote the spirit of innovative startups in the cultural sector, contributing to creating new momentum for the development and promotion of cultural values, identity and spirit of the Vietnamese people in the new era./.

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(1) See: Clause 1, Article 2 of Circular No. 01/2018/TT-BKHCN, dated April 12, 2018, of the Ministry of Science and Technology: Regulations on the organization and management of the Project "Supporting the national innovation and startup ecosystem until 2025", Government Electronic Information Portal, https://datafiles.chinhphu.vn/cpp/files/vbpq/2018/07/01-bkhcn.signed.pdf
(2) Documents of the 13th National Congress of Delegates, National Political Publishing House Truth, Hanoi, 2021, vol. I, p. 145
(3) Documents of the 13th National Congress of Delegates, op. cit. , p. 132
(4) Hoang Giang: Vietnam's innovative startup ecosystem enters a new phase , Government Electronic Newspaper , January 2, 2024, https://baochinhphu.vn/he-sinh-thai-khoi-nghiep-doi-moi-sang-tao-viet-nam-sap-buoc-vao-giai-doan-moi-102240102154309347.htm  
(5) Hoang Giang: Vietnam's innovative startup ecosystem enters a new phase, Government Electronic Newspaper , January 2, 2024, https://baochinhphu.vn/he-sinh-thai-khoi-nghiep-doi-moi-sang-tao-viet-nam-sap-buoc-vao-giai-doan-moi-102240102154309347.htm  
(6) Some typical cases, such as starting a business with the Dao Tien ethnic brocade weaving profession of Ms. Ly Thi Hang in Sung hamlet, Cao Son commune, Da Bac district, Hoa Binh province; starting a business from Vietnamese silk, creating the brand "Tuoi Silk" of Ms. Pham Thi Tuoi, bringing the ethnic culture to a higher and further level. Or the idea of ​​starting a business from the embroidery art of the Dao ethnic culture of the Traditional Embroidery Club of Dinh Lap Ethnic Boarding School, Dinh Lap district, Lang Son. Many start-up activities in the fashion field are inspired by the history of "Vietnamese historical anecdotes" contributing to the restoration and dissemination of Vietnamese traditional costumes...
(7) We can mention: Young artist Dang Van Hau with "Vietnamese To he" with the expansion and spread of traditional values ​​of To he products throughout the country and internationally; "Internet phenomenon" 1977 Vlog with unique creative content, using details from Vietnamese literary works; Dinh Vo Hoai Phuong with the Vlog page about tourism and cuisine Khoai lang thang,... has contributed to motivating and spreading inspiration for young people to be more confident in choosing to take control of their own career path.
(8) Hoang Giang: Developing innovative startup centers: Avoid overlap and waste of resources , Government Electronic Newspaper , November 24, 2023, https://baochinhphu.vn/phat-trien-cac-trung-tam-khoi-nghiep-doi-moi-sang-tao-tranh-chong-cheo-lang-phi-nguon-luc-102231124191438282.htm
(9) Binh Minh: Why are Vietnamese innovative startups still "inferior to their peers"?, Vietnamnet Newspaper , May 3, 2024, https://vietnamnet.vn/vi-sao-khoi-nghiep-doi-moi-sang-tao-cua-viet-nam-van-thua-chi-kem-em-2276472.html
(10) Tu Thi Loan: The hardships of starting a cultural and artistic career, People's Army Weekend Newspaper , January 8, 2022, https://ct.qdnd.vn/van-hoc-nghe-thuat/gian-truan-khoi-nghiep-van-hoa-nghe-thuat-527552
(11) Hanh Le: Access to finance is still a big challenge for Vietnamese startups, Business Forum Magazine , May 1, 2024, https://diendandoanhnghiep.vn/tiep-can-tai-chinh-van-la-thach-thuc-lon-voi-startup-viet-10132618.html

Source: https://tapchicongsan.org.vn/web/guest/van_hoa_xa_hoi/-/2018/1112002/thuc-day-khoi-nghiep-doi-moi-sang-tao-trong-linh-vuc-van-hoa-o-viet-nam-hien-nay.aspx