On the afternoon of September 15, on the sidelines of discussion session 9 "Innovation and entrepreneurship" of the 2th Global Young Parliamentarians Conference, a reporter from News newspaper had an interview with Dr. Nguyen Khanh Linh, National Innovation Center, Ministry of Planning and Investment - one of 9 typical young faces of the Vietnamese delegation participating in this conference.
What is your opinion on the current situation and forecast for the next 5 years of the startup ecosystem as well as technology startups in Vietnam?
According to the Vietnam Innovation 2023 report of the National Innovation Center in collaboration with Forbes and Do Venture (venture capital fund, supporting startup companies and investors), after the Strong recovery in 2021, venture capital investment in Vietnam plummeted 56% due to the impact of global economic fluctuations. This impact is especially evident in the second half of 2022, with investment values decreasing by 65% because of the growing crisis in the technology industry.
However, the number of deals increased in the second half of 2022. This shows that investment activity is still taking place steadily despite the decrease in investment value.
The Financial Services sector received the most investment with a strong increase of 248%. Investment capital in the Fintech sector is still abundant, accounting for 39% of total investment value, an increase of 4 percentage points compared to 2021. In the midst of the "capital-calling winter", investors continue to express interest. to Vietnamese startups.
Vietnam is considered one of the countries with a dynamic innovation ecosystem thanks to the rapid development of the digital economy and the strong growth of the technology sector. However, Vietnam still needs to overcome certain challenges to truly become a regional center of innovation and new technology.
Vietnam has notable growth in internet index: 72,1 million users; 12th in the world in terms of internet users; 94% of internet users access daily; 94,1 million people use smartphones and many other impressive indicators.
Vietnam has made significant strides in improving innovation indexes, taking advantage of its strengths to quickly catch up with the world in the field of technology: developed infrastructure, people. Proficient in technology, innovation and entrepreneurship have many bright spots.
Overview of the second thematic discussion session on Innovation and entrepreneurship. Photo: MD
Besides its strengths, Vietnam needs to overcome certain challenges to truly create a turning point for the development of the country's innovation ecosystem: Lack of policies to promote innovation development and sustainable entrepreneurship; lack of large divestment deals; lack of capital from large corporations.
The situation of Vietnam's startup ecosystem in the next 5 years is forecast to continue to develop strongly and attract a lot of attention from domestic and foreign investors. It is expected that the number of startups will continue to increase in the next 5 years, and the quality of these companies will also improve; Domestic and foreign investors will continue to invest in startups in Vietnam, especially companies with growth potential and competitiveness in the international market; The government and related organizations will continue to support startups by providing policies and support programs, helping startups develop and compete in the market.
The government and related organizations will continue to promote supportive policies to improve the business environment. Startups will increase cooperation with each other to create breakthrough values, while helping reduce risks and costs for companies. In short, the situation of Vietnam's startup ecosystem in the next 5 years is forecast to continue to grow strongly and attract attention from domestic and foreign investors. Startups will continue to focus on the fields of technology, media, education, health, agriculture and sustainability.
What are the biggest challenges that technology startups in Vietnam are facing? What are their opportunities in the near and far future, sir?
The first thing to mention is limited access to capital: Many technology startups in Vietnam have difficulty securing capital, especially in the early stages of development. This may be due to the lack of venture capital firms and angel investors in the country, as well as difficulties in securing loans from traditional financial institutions.
Second is the lack of talent: Vietnam is lacking skilled workers, especially in fields such as software development, data science and engineering. This can make it difficult for startups to find and hire the talent they need to grow and succeed.
Then there's the limited market size: Vietnam is a relatively small market compared to other countries in the region, which can limit the potential customer base for startups. This can make it difficult for startups to achieve economies of scale and generate significant revenue.
Fourth is legal and regulatory challenges: Startups in Vietnam also face challenges related to navigating the legal and regulatory environment.
But we have opportunities such as: Growing tech ecosystem: Despite the challenges, Vietnam's tech ecosystem is growing rapidly, with many new startups emerging every year. This has led to the growth of a supportive entrepreneurial community, as well as growing interest from investors and accelerators.
Vietnam has a young, tech-savvy population that is increasingly connected to the internet. This offers significant opportunities for startups focusing on areas such as e-commerce, mobile applications and digital content. Increased government support: The Vietnamese government has recognized the importance of the technology sector to the country's economic growth and has launched a number of initiatives to support startups. These include tax incentives, grant programs and the establishment of innovation centers and incubators.
Another strength of Vietnam is its strong regional connections: Vietnam's location in Southeast Asia helps startups access the large and rapidly growing regional market. This can create opportunities for startups to expand both domestically and internationally.
Although technology startups in Vietnam are facing challenges, they also have significant opportunities to grow and succeed. By addressing these challenges and taking advantage of existing opportunities, Vietnamese startups with potential, flexible adaptation, and proactive creativity can still compete in the global arena.
What policies has the Vietnamese government implemented to promote the country's digital transformation plan and the growth of the technology startup industry in Vietnam?
The XNUMXth National Congress of the Party pointed out tasks and solutions for socio-economic development including: Strengthening scientific and technological potential and building a national innovation system, developing promote the creative capacity of all individuals, businesses and organizations; Build a number of research institutes that apply modern science and technology, develop innovation centers and technology incubators; Increase assistance to strongly develop small and medium-sized enterprises and support start-up businesses.
Following the Congress, a number of laws, resolutions and policies of the Politburo, Government and Prime Minister aimed at devising strategies and realizing the goal of developing a prosperous country include: Resolution No. 52 -NQ/TW dated September 27, 9 of the Politburo on a number of guidelines and policies to proactively participate in the Fourth Industrial Revolution; Decision No. 2019/QD-TTg dated June 749, 3 of the Prime Minister approving the national digital transformation program until 6, with a vision to 2020; Decision No. 2025/QD-TTg dated December 2030, 2289 of the Prime Minister promulgating the National Strategy on the Fourth Industrial Revolution until 31; Decision No. 12/QD-TTg dated May 2020, 2030 of the Prime Minister promulgating the Strategy for developing science, technology and innovation until 569.
The specific goal by 2025 is to maintain the ranking on the Global Innovation Index (GII) among the top 3 ASEAN countries, and by 2030 is to maintain the ranking on the Global Innovation Index (GII). GII) belongs to the group of 40 leading countries in the world. The resolution also sets a vision goal by 2045 to make Vietnam one of the leading smart manufacturing and service centers, start-up and innovation centers in Asia; have high labor productivity, have enough capacity to master and apply modern technology in all fields of economy - society, environment, defense and security.
To achieve the set goal, the Prime Minister signed Decision No. 2289/QD-TTg dated December 31, 12 promulgating the National Strategy on the Fourth Industrial Revolution until 2020. System development The national innovation system is business-centered, with higher education institutions and research institutes as research subjects.
To create conditions and support for innovative businesses, the National Assembly has a legal framework to support specific startups in the Law on Support for Small and Medium Enterprises 2017 (Law No. 04/2017/ QH14), or the Government also has Decree No. 31/2022/ND-CP dated May 20, 5 of the Government on interest rate support from the state budget for loans from businesses, cooperatives, household business.
The Government has also issued many specific Decrees providing guidance to initially create a solid legal framework for the Innovation ecosystem, specifically Decree No. 38/2018/ND-CP dated March 11, 3 of the Government. The Government provides detailed regulations on investment for innovative small and medium-sized startups and Decree No. 2018/80/ND-CP dated August 2021, 26 of the Government details and guides the implementation of a number of Articles of the Law on Support for Small and Medium Enterprises.
In the context of the world economy just recovering from the pandemic and a series of geopolitical uncertainties continuing to appear, opening up institutions for innovation and entrepreneurship plays an even more important role in ensuring The country's economy will develop sustainably and prosper in the future.
Thanks so much.
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