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HCM City offers startup assistance

access_time Jun 22,2016 chat_bubble_outline 63 views

Ho Chi Minh City has announced the introduction of a credit support package for startups worth VND1 trillion ($45 million).


HCM City offers startup assistance


City Chairman Nguyen Thanh Phong said on June 17 that the funds will come from its budget and provide support to startups in management, technology, and access to bank credit.

Businesspeople under 35 years of age will be prioritized.

The city will hold exchange meetings between youngsters, undergraduate students, and successful businesspeople and also organize startup clubs.

“The city will have policies supporting startups, helping them innovate their equipment, apply technological science, and renovate their management model through investment incentive programs and bank-to-enterprise programs,” Mr. Phong said.

He also promised to reform administrative procedures, revoke illegal permits, and tackle counterfeits and trade fraud.

“This is an important factor in contributing to restructuring and transforming the city’s economic growth model breadth to depth,” he said.

“The Japanese economy is not strong solely because of major enterprises such as Toyota, Honda, Panasonic, and Sony but because of its small and medium-sized enterprises,” he added.

“These improve constantly and have flexible customer approaches that differentiate Japanese goods in global markets.”

Startups have been operated with a great deal of enthusiasm, he went on, which is in line with the city’s dynamic economic development. Startup models and support activities are increasing, focusing mainly on potential sectors such as retail, processing and manufacturing, construction, real estate, and science and technology.

Agreeing, Mr. Nguyen Trong Hoai, Vice Principal of Ho Chi Minh City’s University of Economics, said that in many developed countries a startup spirit is nurtured in people from a young age.

“We will soon begin introducing startup knowledge in training courses entitled ‘Start-up Administration’,” he added.

Ms. Truong Ly Hoang Phi, Director of the Business Startup Support Center, noted that many startup ideas come from creative students but few can actually be applied in practice.

She hopes that startup training programs would assist students to adding practicality to their ideas.

Ho Chi Minh City has a stable and effective business environment, with 274,000 registered enterprises, or 31.7 per cent of country’s total.

In 2015 non-State enterprises contributed 24.5 per cent of the city’s GDP and 15.7 per cent of its budget revenue.

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