Some start-up projects in Ho Chi Minh City will receive financial support of up to VND2 billion ($90,000) within two years under a mechanism recently issued by the municipal People’s Committee.



The beneficiaries will operate in the city’s four key industrial sectors: manufacturing mechanics, electronics-information-technology, chemicals-rubber-plastics, and food processing.

Those investing in the support industry and services will also be eligible for the funds, Sai Gon Giai phong (Liberated Saigon) newspaper reported.

The eligible projects will be selected from contests on renovation and creation organised by the municipal Department of Science and Technology, or projects registered with the department.

HCM City, one of the country’s largest economic hubs, aims to expand the number of enterprises in the city to 500,000 by 2020, according to its draft plan announced in July.

Currently, the southern metropolis has 270,000 registered firms, including 170,000 in operation. It also has 250,000 family businesses with potential to develop into companies.

Vietnamese policymakers are embracing an ambitious plan to turn the country into a start-up nation in the next four years.

Recently, the Vietnamese government approved various initiatives aimed at promoting a boom in technology start-ups.

Under the project, the government will provide legal and financial support for an estimated 2,600 start-ups across the country over the next 10 years.

The government plans to launch an online portal that will keep start-ups updated about technologies, policies and funding.

The government will also set up co-working spaces where startup companies can gain access to infrastructure at low costs.

Start-ups will even receive financial support from the government for training, product testing and marketing.

The Ministry of Planning and Investment has also developed incentives that will draw local and foreign venture capital funds.

VNA