Is vietnam the promised land for start-up companies?

Jul 05, 2017 | 11:03 AM GMT+7

TheLEADER“Creative startups” is certainly a shortcut to robust economic growth for any countries. The supportive attitude for start-up companies rapidly prevails across Vietnam, as numerous policies and campaigns aiding start-up companies have been framed and implemented. However, apart from that attitude, decisive actions should be promptly taken to actually turn Vietnam into the Promised Land for start-up enterprises.

Is vietnam the promised land for start-up companies?
Numerous policies and campaigns aiding start-up companies have been framed and implemented. Photo: Internet

A large number of experts and private business leaders have recently attended the series of talks named “Vietnam – The Promised Land for Start-up Companies”, held by Vietnam Chamber of Commerce and Industry (VCCI) in coordination with United States Agency for International Development (USAID), to exchange knowledge and discuss advantages – disadvantages in turning Vietnam into a start-up-friendly environment.

The way to become a Start-up Land

According to the survey on start-up by VCCI and USAID, in Vietnam, business ideas are realized in the form of not only enterprises but also non-agricultural individual business establishments (business households). In particular, in 2016, there were 110,100 enterprises registered to set up and 83.487 non-agricultural individual business establishments. In terms of age, nowadays64% business leaders and 72% start-up managers are more than 30 years old. Most of them have obtained a university graduation certificate and started their careers from business households, which belong to the private sector.

The reasons for start-up in Vietnam are quite diverse: 26% wants to discover new things; 31% wants to create jobs; 41% wants to be financially independent; 56% wants to be self-employed; and 13% wants to build an enterprise for next generations. Additionally, the report shows that most of start-up enterprises originate from business households, which want to expand or at least remain its scale in the future. Notably, 5 sectors that have the most registered enterprises over the recent years are: real estate, agricultural – forestry – fishing, art and entertainment, transportation and logistics, and employment services.

Promoting start-up companies has been set as both a goal and a method for implement strategic changes in institution, infrastructure and human resources. The name “Vietnam - The Promised Land for Start-up Companies” has clearly expressed the expectation of start-up managers for a friendly environment.

Stimulate creativity and innovation

Recently, State has issued a large number of resolutions to improve business environment and national competitive ability.

Mr. Nguyen Tien Quang - Director of VCCI Da Nang – said: “We have set the goal of having one million enterprises established by 2020; therefore, start-up enterprises should be focused on. To promote this trend, State should aim at raising awareness of the youth by training courses and, most importantly, create a friendly environment that respects the business rights and principals.”

After lively and detailed discussion on advantages and disadvantages of start-up companies in Vietnam, speakers in the talk suggested some ways to benefit those. Most of them agreed that Vietnam had been changing to assist startups: from renewing the institution to updating policies, which fuel the robust growth of start-up enterprises.

However, these companies should be well prepared for great challenges and pressure coming from the Fourth Industrial Revolution and the integration process of Vietnam in the near future.

Mr. Nguyen Thanh Duy – Chairman of HD Group said, besides the determination to follow the goals, leaders should have their own strategy for the career. If it does not work, do not blame yourself or the situation for the failures; stay alert and proactive to find out the reasons and adjust the strategy. At least, failures equip you with precious experience.

“Start-up is for any ages”, and the door still stays open to whoever have a passion for business. Determination and an obvious target would help you overcome any obstacles. Do not wait until you are “well-equipped” with experience, because knowledge is boundless. Only when you step up and accept “high risk, high returns” can you reap fruitful results for yourself and your country.