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Summary

16 COVER STORY
NEED FOR FINANCIAL
INSTITUTIONS TO TRULY ‘UNTIE’

SCIENCE AND TECHNOLOGY 32 COVER STORY

Capital sources for startups need
T he level of investment in science and technology in catalysts and favorable environment
Vietnam remains limited. According to analysts,
investing in science, technology, and innovation via
different capital sources, including from the public and
private sectors, plays a very important role. Vietnam needs
to mobilize all of its budget and private resources to invest I n the context of challenges surrounding the global
in science and technology to create new growth engines for economy, capital being poured into Vietnam’s startup
the economy. To remove inadequacies in payment and and innovation sector has also fallen. With the arrival
settlement for scientific and technological tasks, research of foreign funds in the country and the birth of many
activities in the field need to apply a more specific domestic funds, there are opportunities for Vietnamese
mechanism than other State budget expenditure. It is startups to raise capital if they can prove their business
necessary to research and develop specific mechanisms, model and convince investors of their sound operational
accept risks and failures in science, and remove capacity, especially in the current context of significant
administrative barriers in the management of scientific fluctuations. Vietnam is considered a startup ecosystem of
research activities. potential in the eyes of venture capital funds, but there
remain certain barriers. In addition to internal efforts within
startups, support from the government in removing
25 COVER STORY investment and legal bottlenecks are also expected to help
attract venture capital and innovation into the country.

Science & technology
8 ECONOMY - POLICY
enterprises thirsty
TOWARDS
for capital

A ccessing loans from banks is extremely difficult for DEVELOPING
science and technology enterprises due to associated
regulations and a lack of collateral, and in many cases A LOW CARBON
securing a loan is all but impossible. Capital from the State
budget for science, technology, and innovation also presents
challenges, adding to the difficulties facing businesses. Many ECONOMY
analysts believe that Vietnam needs to quickly introduce a
specific mechanism and accept the risks in scientific research,
build a legal framework to test an economic model based on
science and technology, and develop remuneration policies
and regimes for science and technology staff. There also needs
to be appropriate legal mechanisms to commercialize science
and technology, as well as State management of technology,
V emissions by 2050 to contribute to global efforts to
standards, and measurements. ietnam has committed to achieving net-zero
respond to climate change. It has determined that
applying a carbon pricing tool, specifically a compliant
carbon market, will support the goal of reducing
greenhouse gas emissions. To achieve its goal of reducing
emissions, in addition to energy conversion solutions,
energy savings, the application of advanced technology to
reduce emissions, and increasing the afforestation area to
absorb carbon are among other measures. The
development of the carbon market in Vietnam will
contribute to the goal of reducing greenhouse gas
emissions at low cost to business and society, promoting
the development of low emissions technology towards
developing a low carbon economy.
4 KINH TẾ VIỆT NAM | Số 48 | Ngày 27/11/2023 www.vneconomy.vn