Hanoi (VNA) - Start-ups will be givensupport from the State budget in localities with no more than 30 percent oftotal investment mobilised from investment funds.
This is one of the regulations stipulated in the Decree38/2018/NĐ-CP on investment for small-and-medium start-ups and innovativefirms, which took effect on March 11, 2018.
Start-up projects receiving investment from State financialinstitutions should meet the requirements of doing business in the sectors inwhich the localities prioritise development. In addition, they must be chosenby at least one investment fund for receiving capital.
The maximum time for investing in a start-up is five years.After the period, State financial institutions in localities could transfershares and contribute capital to private investors.
Based on State budget conditions, the provincial People’sCommittee would ask the People’s Council to assign their local financialinstitutions to invest in start-ups.
Local financial institutions would choose start-up investmentfunds, which have at least one year of experience in the activities.
Annually, local institutions will conduct evaluation,adjustment and announcement of the list of chosen start-up investment funds ontheir websites.
The decree provides detailed regulations on investment forstart-ups. The start-up investment fund does not have legal status. It canreceive capital contribution by a maximum of 30 investors.
Capital contributions could be in VND, gold, land use rightand other assets, which could be valued in VND. Investors are not allowed touse loans to contribute to the fund.
The fund could deposit their money at commercial banks andinvest less than a half of their charter capital after receiving investment.All the capital contributions and assets of investors must be independentlyaudited by fund management companies. Investors could establish and hire acompany to manage the fund.
Nguyen Duc Khuong, professor of finance and deputy directorfor research at France-based IPAG Business School, said that start-upactivities had recently got attention from the Government, investors and people.
According to a survey conducted by Amway Group, incooperation with Technische Universitat Munchen and Gfk Company, Vietnam tookthe first position in the Amway Entrepreneurial Spirit Index.
Vietnam has advantages in development of information,communication and technology, tourism, agriculture, banking and finance.However, the issue was that some start-ups have good products but lack ofcommercial skills. Especially, the start-up ecosystem in the country has notbeen completed and there is lack of co-operation with universities and biggroups.
Khuong said Vietnam should establish a start-up ecosystem inwhich the Government holds the role of a coordinator.
Young people should be given education and training,especially start-up skills. Start-ups should have a big vision and be ready totake a risk when starting a business, he added.-VNA
VNA
