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Summary

13 COVER STORY 20 COVER STORY
Startups grappling with ENHANCING THE CREATIVE
a funding ‘winter’ STARTUP ECOSYSTEM

T he startup investment landscape in 2023 saw a “winter” V ietnam’s creative startup ecosystem has seen strong
development in recent times but startups have been
in capital raising. Venture capital activities in Vietnam
continued to slow, marking the second year of decline facing challenges in raising investment capital. To
since 2021, both in deal numbers and investment value. offer support, there needs to be methods introduced to help
Though the market still sees some startups receiving funding, mobilize alternative sources of capital. Investors and venture
there are few deals of significant value. According to analysts, capital funds often look to startups that already have an
this funding “winter” may last until the third quarter of this initial market and are able to grow their market size.
year. Regardless, the market recovering and returning to record Establishing this initial market for startup products is
levels of startup investment, as in 2021, will take some time. It therefore key. To complete an appropriate legal basis for the
is possible that this year may be better than 2023, but the ecosystem, the Ministry of Science and Technology has
difficulties have not been overcome and a return to the pace of proposed that the government introduce a decree on
development seen in previous years is still some way off. innovation and creative startups.

24 COVER STORY
CREATING A ‘CATALYST’ FOR INNOVATION

M r. Vu Quoc Huy, Director of the Vietnam National Innovation
Center at the Ministry of Planning and Investment, has
said Vietnam’s results in innovation can be clearly expressed
via a range of indicators. Under the Socio-Economic Development
Strategy in the 2021-2030 period, strongly developing science
and technology and innovation to create a breakthrough in
boosting productivity, quality, efficiency, and competitiveness in
the economy is among the tasks set. However, science and tech-
nology and innovation are still to reach their full potential. To
promote innovation in Vietnam this year, areas of focus include
implementation, perfecting and developing the innovation ecosys-
tem, fine-tuning policy mechanisms to encourage innovation,
boosting capacity building and investment in R&D, and leveraging
digital technology and AI.

4 KINH TẾ VIỆT NAM | Số 5 | Ngày 29/1/2024 www.vneconomy.vn