The entire system of policies that impact research and development of innovative startups needs to be reexamined in a methodical and systematic way, experts say.

Nguyen Viet Dung, director of the HCM City Department of Science and Technology, said the policies that HCM City authorities are applying for innovative startups offer major packages that support ecosystems, including training and activities for incubating businesses via competitions and financial support. 

The policies also offer funds to help companies perfect their products and business models before they approach venture investment funds, and provide connections between startups and help them approach foreign markets and investment funds.

HCM City now enjoys a specific policy stipulated in National Assembly Resolution 98.

It offers three policy packages for innovative startups, including a VND40 million package that provides support to complete ideas, and VND80 million that helps entrepreneurs to speed up their projects.

Dung said the amounts are not high enough to help startups solve all their problems, but state policies should be seen only as initial capital. Startups still need to seek more capital from investment funds, angel investors, and major clients.

However, Dung believes policies for startups need to be reconsidered because the biggest problem is the legal framework. The major problem lies in the way of thinking, which hinders research and development of innovations.

He said HCM City should use the sandbox mechanism, putting new policies and models on a trial basis. The policies will be analyzed after the trial period, and the state will then issue official policies.

Under Resolution 98, new policies have been applied in HCM City, including preferential remuneration for research, development and innovations of up to VND120 million; personal income tax exemption for those working in innovative fields; and tax exemption for venture investment fund transactions.

Viet Nam Net