Incubation key to thriving businesses

Incubation key to thriving businesses

Viet Nam has in recent years focused on the development and initial breakthrough of high technology business incubators (HTBIs) in developing successful businesses, the Viet Nam Economic News reported yesterday.

The HTBI is an organisation that links centres, research institutes, universities with groups and individuals to create a business start-up environment that helps new entrepreneurs overcome initial difficulties and successfully develop their businesses.

In other words, the HTBI provides services and facilities needed to support start-up businesses, from idea shaping to successful development.

The HTBI concept is becoming increasingly popular in both developed and developing countries. Nguyen Hai An, Director of the Agricultural High Technology Business Incubation Centre under the HCM City's Management Board of Agricultural High Technology, said that before 2003, Viet Nam did not have any HTBI.

But to date, the country has recorded 11 HTBIs, including five in the north and six in the south, which have incubated more than 30 businesses.

According to the Ministry of Science and Technology's National Agency for Technology Entrepreneurship and Commercialisation Development, incubated businesses have achieved some initial successes, with annual sales ranging from VND1 billion to VND150 billion (from US$47,600 to $7.14 million).

Mai Thanh Phong, Director of the High Technology Business Incubation Centre under the HCM City University of Technology, said the Government should offer incentives for high technology business incubation establishments and incubated businesses such as long-term stable funding or preferential loans to carry out incubation, production and product testing.

The Government should also create favourable conditions for attracting international donors and non-government organizations, Phong added.

He also said high technology business incubation establishments should strengthen mutual linkages.

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