Da Nang is on course to build up many policies to support the development of innovative startups, aiming to become a national innovation startup centre cum an international-level creative and scientific urban area.

Workers are seen on duty at the Ha Giang Phuoc Tuong Mechanical Joint Stock Company. Photo: PHONG LAN

At the beginning of May 2022, the solution ‘Research, design, and manufacture 20mm - 80mm thick sheet steel punching machine" by Ha Giang from the Ha Giang Phuoc Tuong Mechanical JSC won the first prize at the 16^th National Technical Innovation Contest (2020-2021) which was  organised by the Viet Nam Union of Science and Technology Associations and the Viet  Nam Technical Innovation Support Fund.

Steel punching machines are considered to be the ‘backbone’ of industrial mechanical production, but currently, most such machines in Viet Nam are usually imported amidst the great demand of the market, in October 2020, the company self-researched and manufactured the first 20mm - 80mm thick sheet steel punching machine in Viet Nam with the same capacity and productivity as imported ones, but capable of saving input materials for the project.

The Da Nang authority approved VND930 million in aid in February 2021 for the company to develop machines, and they have been put into use in many large hydroelectric power plants across the country

As assessed by Mr. Ha Giang, the above-mentioned product’s developer cum the Chairman of the Board of Directors of the Ha Giang Phuoc Tuong company, the manufacturing industry in Central Viet Nam heavily depends on market demand and small orders.

In retail, the company has to continuously create and apply modern science and technology into production and corporate governance.

“Innovation has helped us start a business and grow up in Da Nang, from nothing, to stand firmly and thrive well as seen nowadays.”, said Giang.

Over the past time, the Da Nang Department of Science and Technology has accompanied businesses, advised the municipal leaders to issue many mechanisms and policies to develop an innovative startup ecosystem, develop intelligence properties and support enterprises in terms of technological innovation.

Since 2017, a total of VND6.11 billion from the Da Nang budget has been granted to 42 enterprises for their better technological innovation, thus contributing to helping them create new products, improve productivity, maintain production stability.

The number of science and technology (S&T) enterprises in 2020 and 2021 has increased significantly as compared to the previous time as they all accounted for 72% of the total granted with the S&T Enterprise Certificates till date.

In the field of innovative startups, the city has built up an ecosystem with 6 incubators, 2 creative spaces and 4 investment funds.

At the same time, the Da Nang Innovation Startup Support Centre has been established on the basis of restructuring of the Science and Technology Information Centre under the municipal Department of Science and Technology, serving as the focal point to connect the city's startup network with national and international ones, deploy startup and innovative activities city-wide, coordinate with the Ministry of Science and Technology to promote the establishment of the National Centre for Support for Innovative Startups in Da Nang.

In addition, the city has directly supported 17 startups with a total aid of more than VND2.8 billion to perfect their technologies and develop products and services.

At the same time, 2 local incubators have received support from the local authorities to run incubation programme to develop new startups.

Till date, the city has seen the birth of 147 projects and over 50 startups, and more than 50 commercialised products and services.

In particular, over recent years, the mobilisation of resources in the community has been promoted such as bilaterally cooperating with Vicoland Group to form a venture capital fund of VND 200 billion and attracting private investment resources into the building of workspaces and incubation services.

In terms of material and technical facilities, the Hi-tech Business Incubation Zone at the General Service Centre under the Da Nang Hi-Tech Park has completed the installation of equipment for its full operation.

Likewise, the Software Park No. 2 project has also formed a space for innovation, research, development and training, and an information technology incubator covering an area of 21,000m².

Mr. Le Duc Vien, the Director of the municipal Department of Science and Technology said: “Take a glance at successful innovative start-up models such as Silicon Valley in the US, Shenzhen in China, Seoul in the Republic of Korea, Tel Aviv in Israel, Da Nang can make a similar success story”.

The Da Nang government has set the goal of developing 200 innovative startup projects and 100 innovative startup businesses to commercialise their products in the 2021 - 2025 period, developing them into pioneers in the digital economy and the transformation of the city's growth model.

In addition, it is necessary to continue researching outstanding mechanisms to support innovative startups, including applying the “special innovation zone” mechanism or the pilot Regulatory Sandbox framework like in

Singapore in a bid to encourage the development of the digital economy, and to attract mor potential businesses in financial technology (fintech), digital banking and blockchain as well.

Mr. Thai Ba Canh, Vice President of the Da Nang Union of Science and Technology Associations
said that, in order to build Da Nang really into a creative startup centre, it is necessary to create a positive change in awareness to promote innovation for the sake of the city's better socio-economic performance.

It is suggested that the municipal authorities allow experimentation and risk-taking in the application of new technologies in the public and private sectors, and allow the application of innovative start-up businesses' products in the government system and state management agencies.

Last, but not least, it is necessary to strengthen financial resources, boost incubation and support activities for enterprise.

Reporting by PHONG LAN – Translating by A.THU