Besides the plan on establishing a center to support startups, Hanoi is also considering setting up a venture fund with part of capital from the city’s budget.
“Hanoi has made a proposal that I think ministries and branches would agree absolutely - assigning it to apply pilot policies to develop it into an entrepreneurship center of the whole country," said Deputy Prime Minister Vuong Dinh Hue at a workshop held recently.
While Hanoi has proposed a trial policy to develop into a large entrepreneurial center, HCM City has drawn up five projects to realize the ambition of becoming Vietnam’s Silicon Valley.
“The confidence in business has been restored,” he said.
The number of newly set up businesses in Hanoi reached 15,000 by August 2016, raising the total number of existing enterprises in the city to 200,550.
The ratio of businesses to people is 1.38, which is 3.7 times higher than the average ratio in the country. The city wants to raise the number of newly set up businesses to 200,000 by 2020.
According to Hanoi’s Vice Mayor Ngo Van Quy, Hanoi will apply four measures to turn the city into an entrepreneurial center.
First, Hanoi would have policies to encourage start ups, such as a startup support project, regulations on supporting businesses after registration, and a project on friendly authorities.
Second, there would be a startup support center with focus on information technology and science & technology businesses.
Third, some investment funds would be set up, including venture funds, to pump capital into startups. Fourth, drastic measures would be taken to improve the investment environment.
Meanwhile, HCM City authorities have outlined detailed action plans and set up clear targets to build up a Silicon Valley there.
The HCM City People’s Committee, in an 11-page document released in August, mentioned five projects to develop the startup ecosystem which covers many different fields, from capital arrangement to propaganda, from training to the development of co-working space.
The city has stated that it will support 2,000 startups through consultancy, training, business connection and incubation to help improve productivity by 15 percent per annum and upgrade technology at a rate of 20 percent per annum.
Some administrative agencies in HCM City have joined a co-working space run not for profit. Users only have to pay basic fees for electricity, water, security and car keeping services.