The Resolution No. 43-NQ/TW dated January 24, 2019 adopted by the Politburo on building and developing Da Nang by 2030, with a vision to 2045, sets a goal of building Da Nang into one of the major socio-economic hubs of the country and Southeast Asia with a role of being an innovation startup centre.

To achieve the goal, the municipal government and elements in the local startup ecosystem have been building, creating, and implementing many support programmes and solutions.

Da Nang needs to organise many connection and cooperation activities between the education sector and businesses. In the photo: Activities at the Scientific Research Contest for Students organised at the University of Science and Technology under the University of Da Nang. Photo: M.Q - V.H

Promoting advantages, connecting resources

After 3 years of starting a business in the field of educational technology, Mr. Tran Duc Chan, General Director of the Pro Skills International Education JSC based in Lien Chieu District, said that Da Nang boasted many opportunities to start a business because the competitive environment is not too fierce, and labour and living expenses are moderate.

He, however, stressed the necessity for the city to develop infrastructure for innovative startup activities, connect consultants, make strategic orientation, and position startup products right from the beginning, in order to minimise the risk of capital loss and increase startups’ ability to develop better product quality.

He also expressed his belief that Da Nang will be more favourable in becoming a startup centre and an attractive destination for innovative startups if it effectively makes the most of local resources and advantages.

According to Mr. Ly Dinh Quan, General Director of the Song Han Incubator Center (Songhan Incubator), innovation is identified as the knowledge foundation to promote the development of science and technology and improve labour efficiency. And, the movement requires the participation and cooperation of the city government, organisations and businesses.

Mr. Quan underlined the need for the city to organise many connection and cooperation activities between the education sector and businesses, attract more resources, support innovative startup activities on a larger scale, and create opportunities for startup talents to make breakthroughs in quality development.

He also suggested Da Nang issue more breakthrough mechanisms in infrastructure development such as working space, attract more international talents, lure foreign investment capital, and build mechanisms for intellectual property and digital assets for global development and integration in the coming time.

Mr. Nguyen Van Chuong, the Manager of the Swiss Entrepreneurship Programme in Da Nang, highlighted the importance to increase investment capital attraction, encourage venture capital funds to invest in the city, facilitate startups to access preferential loans, develop in-depth support services for startups, strengthen connections between elements in the ecosystem, and improve the quality of human resources in a bid to turn Da Nang into a national startup centre.

Dr. Vo Thanh Hai, Permanent Vice Principal of the Duy Tan University, noted that institutional and capital breakthroughs for innovative start-up activities were issues that Da Nang should pay attention to in order to become a national innovation start-up centre.

He also underlined a must-do for the city to research and deploy legal testing frameworks (sandboxes) for new technology business fields or apply open innovation models to attract investment and strengthen international.

“Da Nang needs to focus on mobilising key incubation resources for potential startup projects to become "unicorns", using these successful projects as a leverage to promote investment capital from international organisations for the city; as well as to continue to promote attracting international capital sources to support startup activities at universities", Dr. Hai emphasised.

Continuing to implement many support policies

To contribute to solving capital difficulties, Mr. Nguyen Van Vinh, Deputy Director of the Da Nang Development Investment Fund, said that the unit has advised the municipal People's Committee to issue a decision on the list of investment and loans fields for the 2021-2025 period. Especially, the unit has expanded priority subjects for business incubators, co-working spaces and innovative start-up businesses. Accordingly, businesses in this group are entitled to apply medium and long-term preferential loan interest rates of 7%/year.

“Most recently, a number of innovative startups in the city have accessed loans from the Da Nang Development Investment Fund to build co-working spaces. The Fund will continue to research and develop a lending mechanism for innovative startups, with priority given to co-working space projects. At the same time, it will strengthen work with domestic and foreign financial institutions to seek and expand capital sources to support start-up businesses; as well as connect start-up support resources with businesses in need of capital" Mr. Vinh said.

Ms. Le Thi Thuc, Deputy Director of the municipal Department of Science and Technology, revealed that her unit continued to advise the municipal-level People's Committee on specific mechanisms and policies on innovative startups and submit them to the National Assembly for consideration and approval. Included are some policies on corporate and personal income tax exemption and reduction, permits for controlled testing of new technology solutions within the innovation space, and exploiting infrastructure assets and equipment to serve innovative startups.

Dr. Pham Hong Quat, Director of the Department of Science and Technology Enterprise and Market Development under the Ministry of Science and Technology, said that the ministry continued to implement the establishment of the National Creative Startup Support Center in Da Nang from the viewpoint of only guidance in Resolution No. 52-NQ/TW dated September 27, 2019 of the Politburo on a number of guidelines and policies to proactively participate in the fourth industrial revolution.

In addition, the Ministry of Science and Technology has commented on the city's draft outlines and projects related to the development of an innovative startup ecosystem; as well as research specific mechanisms and policies to support the innovative startup ecosystem and the project "Da Nang - A city of Innovation".

The Ministry of Science and Technology also recommends that Da Nang soon seek and train positive and pioneering factors to join the consultant network, and support the building of pilot models to serve as a basis for replicating innovative startup models in the city.

Reporting by V.HOANG, M.QUE - Translating by M.DUNG