In reality, although creative startups across Da Nang, over recent years, have yielded many fruitful achievements, it is still high time for the city to develop strategic stages so as to accelerate the startup scene in more sustainable manner, and also importantly, to realise it’s target of turning itself into an innovative startup hub in Viet Nam, and catching up with others in Southeast Asia.

Incentives should be offered to startups to enable them to conduct product development processes including ideation, validation, prototyping before mass production. Picture is taken at the city-based CTNET Company.

Data published by Da Nang Department of Science and Technology shows that Da Nang currently houses about 50 innovative startups out of the country’s total 3,000. In addition, Da Nang shows off six startup incubators, two creative spaces, 10 co-working spaces, 10 startup clubs and startup centres at universities and junior colleges, plus two startup investment funds.

In fact, there are a few major challenges that Da Nang now faces. The city’s resources and its supporting infrastructure for innovative startups are still limited as compared to Ha Noi, HCM City, and other major cities across Viet Nam, for instance.

Assoc.Prof Dr. Pham Duc Chinh from the Ho Chi Minh City University of Economics and Law proposed that an innovative development model in Da Nang should be an open ecosystem managed by a specialised competent governance body.

Simply put, the management agency can operate as an enterprise which is not bound by the strict regulations regarding revenues and expenditures applied on the public sector. In addition, it can be allowed to receive donation from sponsors from both home and aboard to carry out startup activities and promote venture capital funds.

This agency is able to represent businesses operating in the local ecosystem to carry out administrative procedures on business registration, equipment installation, and visa and work permits for their staff under the "one-stop shop" mechanism and a priority process.

Also, it can access priority to provide training services, technology transfer, business consulting services, and host media events and related activities for state-run agencies and enterprises.

In his perspective, Mr Vo Duc Anh, Deputy Head of Technology Management Office at the municipal Department of Science and Technology said Da Nang and Shenzhen City, Guangdong Province, China share many institutional similarities, and have a shift from a centrally planned subsidised model to a market economy.

After 40 years, Shenzhen has turned itself as a fishing village to a modern metropolis with over 10,000 startups, dubbed the “Silicon Valley of China’.

According to Mr Anh, one of the key factors that secure Shenzhen's success is its unique comprehensive mechanisms to attract FDI and develop science and technology.

“While waiting for the comprehensive specific mechanism approved by the national government, Da Nang can learn practical experience from Shenzhen within its capabilities such as supporting  individuals participating in the national and municipal science and technology programmes, and creating incentives for startups to conduct product development processes including ideation, validation, prototyping before mass production” Mr Anh said.

One of the key tasks set for 2021 for sake of better startup scene is to propose Viet Nam's national government to allow the application of Decree No 94/2020/ND-CP regulating mechanisms and policies into the development of innovative startup centres in Da Nang, and the piloting of the regulatory sandbox in a bid to build Da Nang into a national-level innovative startup hub in Central Viet Nam and Central Highlands.

The coming time will see the launch of more science and startup competitions for youths, students and IT programmers from Da Nang and elsewhere in Viet Nam.

By late 2021, at least 30 innovative startups and enterprises will have received financial support from Da Nang government to bring their startup ideas to fruition.

With regard to material and technical facilities for the sake of the local innovative startup ecosystem, Da Nang will strive to seek approval from the national government competent agencies to develop the National Innovative Startup Support Centre in Da Nang. Also, the construction of co-working and patent spaces, labs, and technical infrastructure at the Da Nang Hi-tech Incubation Centre will be completed on schedule.

Another heed will be paid to building the 2nd phase of the Da Nang Innovative Startup Portal, and deploying a virtual reality exhibition platform integrated and operated on the Portal. As for startup networking orientations, more startup investment funds will make their debuts in Da Nang.

By KHANG NINH-Translated by A.T