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Binh Duong is a province with many potentials and opportunities to develop a start-up ecosystem. However, startups are facing many challenges and risks.

Potentials and opportunities

In fact, in recent years, many innovative startups, fast-growing technology companies (collectively known as startups) have exploded around the globe. The giant corporations that we often refer to as Google, Facebook, Apple ... are the startup success. Only three of these startups generated $ 1.5 trillion of market capitalization and have employed thousands of worker worldwide, according to Strategy Analytics, a market research firm.

Students of Viet Duc University introduce innovative ideas at Enterprises’ Conference on "Innovative Solutions and Ideas in Building Smart City in Binh Duong Province" in November 2017.

In Vietnam, innovative startup activities have been more dynamic in recent years. The phrases "startup, startup ecosystem, innovative startup" appear frequently in the media, because starting a business is a great policy of the Party and State, as specified in Resolution 19 and Resolution 35 of the Government. The year 2016 was considered as the national start-up year, when the Prime Minister officially approved the project to support the development of a national eco-business ecosystem by 2025. Accordingly, localities in the whole country in general and Binh Duong province in particular are also actively developing programs and projects to support startups.

Binh Duong is a province with fast-growing, high-growth and stable economic growth; is a potential land that attracts many foreign investments; population age structure is still in its infancy. Binh Duong currently has 8 universities, 8 colleges, 16 junior colleges, 45 vocational centers; strong telecommunications infrastructure; located in the Southern Key Economic Zone, is the gateway to trade with Ho Chi Minh City - the most dynamic start-up center in the country.

According to Nguyen Quoc Cuong, Director of provincial Department of Science and Technology, Binh Duong has the potential to develop a start-up ecosystem. Particularly, Thu Dau Mot University is developing strongly each day with a number of branches such as biotechnology, information technology ... The university has researched and produced itself some products such as “dong trung ha thao”, lingzhi mushroom, black garlic, bio-products used in organic fertilizer production... Meanwhile, Eastern International University has installed philip lighting laboratory, signed cooperation training with leading enterprises, such as Bosch, Festo, startup idea support projects...

In addition, other institutions, such as Vietnam-Germany University, Vietnam - Singapore Vocational College, Dong An Technology College have laboratories for automation, precision engineering. In addition, provincial Association of Young Entrepreneurs has also assited start-up activities and established a network of startup entrepreneurs in Binh Duong.

On the other hand, skilled and professional technicians are currently working for foreign invested enterprises, with advanced production lines and modern machines. Furthermore, Binh Duong also has the potential for the formation and development of venture capital fund, business promotion through many associations, such as electromechanical association, informatic association, industries’ association, young enterpreneurs’ association...

Binh Duong also approved the Binh Duong Smart City project, which takes science and technology as the core factor for development; and Binh Duong is currently developing a project of Community initiative and startup support center. The provincial People's Committee issued Decision No. 2513 / QD- UBND approving the implementation plan of the project "Supporting the national ecosystem of innovative startups to 2025" in the province period 2017-2020, with the main task of developing material facilities for supporting startup ecosystem; build a portal on startups and communication activities on startups.

With such favorable conditions, it can be said that this is the opportunity and motivation for start-ups in Binh Duong province.

The State as a catalyst

In addition to the advantages, enterprises are facing many difficulties and challenges. At present, the technology market in Binh Duong is in the early stage of development, there are no investors, venture capital funds for start-ups, technology enterprises. Moreover, a start-up project must go through many stages, from the formation, development of ideas, incubation, call on investments... The catalytic role of the State, local government in this project is very important.

Thach Le Anh, Vietnam Silicon Valley Project Manager, said that startups needed to have venture capital. The State should also support enterprises in ​​innovation, encourage the production of technology products to catch up with the Industrial 4.0; startup creates a favorable environment as well as connects larger investment funds, because investors always want higher divestment rates. Binh Duong has achieved strong industrial development; many large enterprises, entrepreneurs with investment needs but do not know how to invest, the province should have guidance for these enterprises. Organizations need to set up project groups of startup investment that will bring good efficiency and profitability.

Mr. Cuong said that in recent years, with the support of the province, the start-up community in Binh Duong had grown very quickly. However, in order for this community to thrive and be more substantive, creative changes and steps need to be taken to create a dynamic start-up ecosystem for businesses. According to Nguyen Van Hung, CEO of CNC Technology Solutions Joint Stock Company, universities must equip their students with knowledge chains. Universities must be the factory generating products. At the same time, universities must create space, change the perception of students.

Economic experts said that in order to create a favorable environment and motivate the innovative entrepreneurship movement, the Government should further accelerate the administrative procedure reform and simplify procedures for startups; create an open mechanism to attract foreign professional investors to accelerate startups in Vietnam. Regulators should have practical solutions to support the entrepreneurial community in market, human resources, management knowledge, and governance.

Reported by P.Le – Translated by Ngoc Huynh