Vietnam’s startup economy is poised for success

Minister of Science and Technology Nguyen Quan

Earlier this year, Douglas Abrams, CEO of Expara Ventures, came to Vietnam for the first time to attend Techfest, an event organized by the National Agency for Technology, Entrepreneurship, and Commercialization Development (NATEC), a body of Vietnam’s Ministry of Science and Technology (MOST).

Expara Ventures, which was part of a group of Singaporean investors including Golden Gate Ventures, KK Fund and JFDI, participated in the inaugural event held at Vietnam National University in Hanoi. The three-day event in May was the largest of its kind in Vietnam and sought to bridge the gap between Vietnam and the region while at the same time providing a national platform to promote the best startups and entrepreneurs in Vietnam.

According to Dr. Pham Hong Quat, general director of NATEC,

Forming a dynamic startup ecosystem on a national level might be challenging and unprecedented in Vietnam, however, with the proven potential of the startups, it would be an ideal destination for investors worldwide who aim for high and sustainable returns from investing in the future.

Currently, legislators in Hanoi are drafting the framework of a national project to promote the development of a startup ecosystem by facilitating a wide range of supporting activities including training, mentorship, business incubation and acceleration, and by providing financing to aid in the growth of new companies. As Dr. Quat says,

This national project will provide a sustainable ground for startups to turn their fledgling ideas into a reality, create jobs, and benefit the economy as a whole.

Thus, NATEC is part of a national push to promote kinh tế khởi nghiệp or the “Startup Economy” in Vietnam and it seems to be gathering strength. For example, the National Technology Innovation Foundation (NATIF) was set up (also within MOST) earlier this year with a budget of approximately $47 million and a mission to advance scientific and technological research in the enterprise and educational sectors.

The Finland-Vietnam Innovation Partnership Program (IPP), with a budget of €11 million was co-funded by the Vietnam’s MOST and Finland’s Ministry for Foreign Affairs. IPP selected 12 Vietnamese “Innovation Champions” to train in Lean Startup methodology, effectuation, and agile development, etc. over two months.

IPP also selected 22 projects—18 startups and four system developers—to fund in cities such as Hanoi, Ho Chi Minh City, Da Nang, and Can Tho. The IPP recently co-organized the HATCH! Fair 2015/ IPP Midterm Demo on October 31 and November 1, promoted as the third annual startup conference and exhibition in Hanoi.

Vice Minister of Planning and Investment Dang Huy Dong at HATCH! Fair 2015/IPP Midterm Demo, held this month in Hanoi. Photo: Dang Nghia Nguyen/HATCH!

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