The currently burgeoning industrial revolution 4.0 has created many breakthroughs in information technology (IT) in Da Nang. This is a highly lucrative aspect in which both the national and municipal governments are interested as many supportive moves have been taken for the sake of IT businesses.

Starting up in the IT industry is considered a burgeoning trend in Viet Nam and around the world at large. Employees are seen working at a Da Nang-based IT company (Photo taken in April 2021 by Quynh Trang)

According to the latest statistics from the Da Nang Department of Science and business incubators, the city has till date housed more than 136 projects and innovative startups incubated. The majority of incubated startups are active in the IT industry.

Some potential technology businesses have risen to fame with their notable success in investment attraction drives. Most notably, Dat Bike, a Vietnamese electric motorbike startup, has raised $2.6 million in seed funding from a group of investors led by Singapore venture capital firm Jungle Ventures.

Amit Anand, founding partner of Jungle Ventures, said: "We believe that Dat Bike will lead the mobility sector and create a new benchmark not just in the region but potentially globally for what the next generation of two-wheeler electric vehicles will look and perform like." Dat Bike founder Nguyen Ba Canh Son, a Da Nang-born talented man, said the money would help expand production capacity and fund R&D.

Another bright example is Multi Viet Nam-developed MultiGlass which won the first prizes at the Pitching Competition - SURF 2019 and the national innovative entrepreneurship day Techfest 2019. Besides, the product won a second prize at the National Entrepreneurship Awards 2017, and it was also listed in the ‘Viet Nam Golden Book of Creativity 2016”.

Likewise, EM&AI finished as a runner-up at TECHFEST 2020 hosted by the Ministry of Science and Technology, and won the top prize in the Startup Pitching 2020 contest organised by the Viet Nam Software and IT Services Association (VINASA), and the Innovative Financial Technology Solution award at the Orient Commercial Joint Stock Bank (OCB)- held Open API Challenge contest early December 2020.

Despite being a relatively young startup in the IT industry, the ST United Co., Ltd  based in Ngu Hanh Son District has created a solid foothold in the local market. The company-developed HEPPI application helps build corporate culture and enhance cohesion between businesses and their staff, thereby building corporate culture in the digital era.

Mr. Pham Vu Huy Hoang, the co-founder of the Heppi project shared, “IT has always been a "fertile ground" for startups aspiring to get rich with the advantage of low investment capital, fast payback period. IT employees can work in a comfortable, flexible environment, not much affected by the pandemic.

However, it also contains many challenges. Local IT firms now face a fierce competition in terms of startup models with foreign corporations in the same field, and human resources with other domestic ones. Meanwhile, IT engineers’ demand for high salaries over recent years has still been an aching issue facing businesses”.

In light of the complicated developments of COVID-19 and its great impacts on businesses, the city's companionship creates a very important motivation.

Director of the municipal Department of Science and Technology Le Duc Vien affirmed that, in the coming time, his agency will continue to stand side by side with businesses.

Focus will be on supporting businesses to speed up technological innovations, overcome existing difficulties and make more development strides.

In particular, startup businesses will have access to assistances in terms of business models, product development tips, communications strategies and incubation programmes in an attempt to raise investment in seed funding and venture rounds and make deeper penetration into the market.

Also, they will be facilitated to participate in startup competitions and events, and have the chance to partner with domestic and foreign businesses.

Reporting by QUYNH TRANG – Translating by A.T