‘Policies are removing obstacles and creating momentum for the country to develop’

The information was given by Mr. Quat, Director of the Department of Startups and Technology Enterprises, at the discussion Policy for local economic development through innovative start-up activitieswithin the framework of Techfest Vietnam 2025 organized by the Ministry of Science and Technology in collaboration with Hanoi People’s Committee on the morning of December 12. According to Mr. Quat, the number of laws on science and technology passed at this session is “the most in history”.

He said that “I clearly feel the atmosphere as well as the pressure and challenges posed in the field of innovative startups in Vietnam today, just like Korea and Japan after World War II”.

In Korea at that time, both the Government, businesses, and people were enthusiastic about starting a business. After several decades, this country has now had many businesses that have grown into giant corporations. Thanks to that, Korea has made a miraculous breakthrough, entering the group of leading developed countries in Asia and the world.

After World War II, it only took Japan a few decades to emerge as a world power, based on innovation, high technology and leading businesses. Along with miraculous development, they do well in social security, the elderly and children are taken care of, leaving no one behind.

From the two evidences mentioned above, Mr. Quat expressed his concern that Vietnam only has 20 more years to realize its aspiration to become a developed, high-income country. Meanwhile, the country is facing the problem of rapid population aging. If in the coming years, the country does not become a developed, high-income country, it will fall into the middle-income trap like many Southeast Asian countries such as the Philippines, Malaysia and Thailand…

“If we don’t get through this stage, we will have to sell cheap labor and exploit exhausted resources. The surrounding area is developing very quickly, our average development means slowing down, even reaching the bottom,” he said.

At the seminar, many leaders of local Departments of Science and Technology shared experiences and practical lessons in promoting the field of innovative startups.

Mr. Vo Hoang Khai, Deputy Director of Dong Nai Department of Science and Technology, emphasized the role of local authorities in creating an innovation ecosystem. Dong Nai is aiming to become an industrial and logistics center. If it does not innovate, it will not achieve its development goals. “Innovation helps the province’s industrial parks, manufacturing and processing enterprises improve productivity and participate in the global value chain,” he said.

Innovation requires large capital, high risk, long time, and the situation of “the market not self-adjusting” easily occurring, so the State’s constructive role will overcome market failure. Only the State has enough authority and resources to lead and direct strategy.

Mr. Khai said that thanks to the application of the above mechanism, Dong Nai has more and more innovative enterprises being established, with 90 innovation enterprises, 16 science and technology enterprises, 34 commercialized products, 553 applied scientific articles, 67 public sector initiatives. A network linking the state – schools – businesses – investors has been established and expanded. The innovation ecosystem becomes a clear contributing factor in local economic growth.

For Quang Ninh, Ms. Vu Thi Kim Chi, Deputy Director of the Department of Science and Technology, shared that the locality applies three key policies: strong reform of administrative procedures; Support small businesses and innovative businesses; create a transparent competitive environment.

In the coming time, Quang Ninh will build a Northeast regional innovation center here as well as promote the innovation sandbox model in smart tourism, smart urban areas, and the marine economy. The locality also established a Venture Capital Fund and has a co-investment mechanism with the state. The international cooperation network to connect knowledge and markets is expanding along with promoting the green economy, creating testing opportunities for startups.