Many of Viet Nam’s large cities are now facing some difficulties and challenges in promoting business start-up activities amongst their young residents as well as establishing hi-tech businesses incubators.

These concerning issues were discussed at a seminar which took place on Wednesday in Da Nang.  The event was jointly organised by the Viet Nam-UK Institute for Research and Executive Education, which is based at the University of Da Nang, and the Management Board of the city’s Hi-tech Park.  Representatives from the city authorities and from domestic and foreign organisations and businesses attended the event.

Workers in a local garments and textiles company

In Da Nang, according to a recent survey conducted by the city’s Socio-Economic Development Research Institute, many local start-up businesses are facing a shortage of capital and other difficulties in seeking consumer markets, recruiting employees, and accessing business premises.  In particular, a shortage of capital to promote technological applications, innovations and transfer has troubled local start-up businesses.

Over recent years, the city authorities have focused on establishing business incubators featuring start-up ideas in the local hi-tech and information technology (IT) sectors, as well as developing local start-up clubs and expanding this model into local universities.

Under the city’s “Year for Business 2014” programme, the “Building Business Incubators” research project was deployed.  The project aimed to create a legal basis for establishing business incubators in the years ahead in order to develop more local large-scale businesses whose major products can be exported in the near future.

Currently, importance is being attached to implementing an IT business incubator project in the city’s Software Park No 2 in Hai Chau District’s Da Phuoc Residential Area, and developing plans to establish another in the city’s Hi-tech Park in Hoa Vang District’s Hoa Lien Commune.

Also at the seminar, economic experts highlighted the role of the State in giving funds to newly-established business incubators in the initial stages of their operation.  They also stressed the need to issue more preferential policies to encourge more private domestic and foreign businesses to invest in local business incubators in order to ensure their long-term sustainable development.