Hanoi to boost innovation and investment

Hanoi to boost innovation and investment

Hanoi is about to make major strides toward creating an all-encompassing startup support network.

Hanoi is working on a proposal to establish the Startup Support and Innovative Entrepreneurship Services Hub to cultivate a robust startup ecosystem. 

Growing potential for startup innovation development

Representatives of Hanoi and localities winning the Vietnam Smart City Awards 2023. Photo: Thanh Hai/ The Hanoi Times

Hanoi should pool resources to attract major investors while supporting startups, local insiders said.

In 2019, the city approved the Plan to Support Startup in Hanoi for 2019-2025 (Plan 4889), which focuses on promoting startup culture, strengthening human resources and application of science and technology.

According to the Hanoi Department of Planning and Investment, Hanoi is home to about 1,000 start-ups, accounting for 26.3% of the country's total, with prominent names seen in education, technology, e-commerce, and finance.

Currently, Hanoi has 32 incubators and 14 business promotion organizations, accounting for 38% and 40% of the national total, respectively. Since 2016, startups in Hanoi have raised nearly US$1 billion through 99 successful funding rounds.

The report highlighted that the entrepreneurial spirit among youth, students, and intellectuals in Hanoi has increased significantly. Many universities have established startup support centers and integrated entrepreneurship content into their curricula. Prominent examples include BK-Holdings at Hanoi University of Science and Technology, FIIS (Innovation and Incubation Center) at Foreign Trade University, and the Knowledge Transfer and Startup Support Center at Vietnam National University.

Initiatives needed for stronger ecosystem connections

A booth showcasing technology products at Techconnect and Innovation Vietnam 2023. Photo: Hanoimoi Newspaper

However, challenges remain, including a lack of comprehensive information about the startup ecosystem, which can discourage potential investors and entrepreneurs.

Le Van Quan, Deputy Director of Hanoi's Department of Planning and Investment, noted that the absence of cohesion between different components of the startup ecosystem has led to a fragmented development landscape.

Many potential startups struggle to find the resources they need because of this misalignment among support initiatives.

The department is finalizing the proposal to transform the existing center into the Startup Support and Innovative Entrepreneurship Service Area to foster creative business ideas and enable young technology companies to refine their technologies and business models.

Pham Hong Quat, Dean of the National Agency for Technology Entrepreneurship and Commercialization Development (Ministry of Science and Technology), emphasized that Hanoi has great startup potential thanks to its large number of scientists, universities, and young talent.

He called for more efforts to create networks and pool resources to support the growth of the start-up ecosystem.

 Dang Thi Huong, Deputy Director of the Hanoi Business Support Center, stressed the importance of promoting a culture of innovation and entrepreneurship, including raising public awareness and attracting investment in start-ups.

Hanoi Times