Venture investment for innovation
With policies to encourage investment in the innovative projects of small- and medium-d enterprises and startups, Vietnam expects to welcome a strong wave of venture investment.
The Vietnam Venture Summit has been launched this week at the Sheraton Hanoi Hotel. The event is the most obvious proof of the efforts of the Vietnamese government, especially the Ministry of Planning and Investment (MPI), to promote innovation in the country and in every business.
With the participation of more than 100 large-scale international and regional funds like Vision Fund, Sequoia, and VinaCapital, the Vietnam Venture Summit builds on the initiatives the MPI has been deploying to facilitate innovation, including establishing the Vietnam Innovation Network with the participation of 100 overseas Vietnamese scientists and experts, and is working to establish the National Innovation Centre.
“This is the first time that so many international and regional funds have gathered in Vietnam. The summit aims to provide a platform to connect investors, startups, and the government. This is a good chance for funds to explore the Vietnamese investment scene and startup ecosystem, as well as discover investment opportunities,” said Minister of Planning and Investment Nguyen Chi Dung.
Also at the summit, funds have committed to contribute funds to startups with solid and marketable ideas. This will be an important resource for Vietnamese small- and medium-d enterprises (SMEs) to apply new technology, develop their products and services, and approach Industry 4.0.
In the context of the robust global momentum in science and technology, the role of venture investment has long been in the spotlight. The government has been implementing numerous activities to create favourable conditions for venture funds to do business in Vietnam. The government issued Decree No.38/2018/ND-CP on investment in SMEs and startups, as well as innovative businesses, which outlined solutions to create favourable conditions for them to access venture capital, as well as opening an attractive investment climate for funds.
“With such practical regulations and legal provisions, venture investment funds will certainly find a lot of opportunities in the favourable, transparent, and stable business climate of Vietnam,” Minister Dung said.
Under the impacts of Industry 4.0, the global economy is shifting towards innovative modes of production and business. Throwing itself into new trends, Vietnam has welcomed a wave of venture investment funds focusing on technology firms. For example, Vision Fund was established by Japan’s Softbank Group Corporation managing hundreds of millions of dollars.
The MPI has been connecting and holding discussions with international funds to encourage this line of investment, which it claims is the shortest way to a prosperous Vietnam.
Accordingly, the MPI has carried out a number of activities to promote innovation. First, establishing the Vietnam Innovation Network aims to unlock the nation’s potential and keep pace in the Industry 4.0 era. Second, the ministry organised the Vietnam Venture Summit to call for international funding for startups and the innovative community. The MPI is also working on establishing the National Innovation Centre, which is expected to break ground at the end of this year, with assistance from global corporations and organisations. Moreover, the ministry is also looking to mobilise private resources to establish training courses for innovative human resources, including high-school, university, and post-university education.
“The Vietnamese government considers innovation as one of the most important motivators for growth, so venture investment will be strengthened in Vietnam in the time coming,” Minister Dung confirmed.