Deputy Prime Minister Vuong Dinh Hue speaks at the workshop (Photo: baocongthuong.com.vn)

HCM City (VNA) – A workshop was held in Ho Chi Minh City on June 7 to develop capital market for startups.

Addressing the event, Politburo member and Deputy Prime Minister Vuong Dinh Hue said the private economy constitutes an important driving force for the country’s socio-economic development.

The Party and State will create all favourable conditions for startups to do business, he added.

He suggested building a proper legal framework and support activities for startups, while calling on them to promote dynamisim and creativity and engage in investment funds.

The State and Government will be responsible for establishing and improving institutions to assist small- and medium-sized enterprises (SMEs), especially private businesses, he said.

However, he noted that the “start-up” idea is still novel in Vietnam , so there are a lot of restrictions in the field, adding that one of the biggest challenges is finding capital sources for startup activities.

As banks do not easily provide financial assistance for venture activities, startup businesses themselves must spend a large amount of money to do business before receiving backing from investment funds.

Experts also shared successful startup models from other countries, saying the Vietnamese Government should build an investment fund to support startups.

A clear and transparent institution is essential to ensure the effective implementation of the fund in line with the market economy’s principles and international practices, they said.

Participants also proposed the Government put forth policies to attract venture investment funds to Vietnam while establishing stock exchanges specifically designed for startup activities.

More than 900,000 businesses nationwide have registered for operation, but only 528,000 are operating and receiving tax codes. The Government sets the goal of doubling the current number to one million by 2020.-VNA