Ho Chi Minh City to spend $45 million on local startups
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HO CHI MINH CITY,VIETNAM - FEBRUARY 23 : People ride motorcycles at streets in downtown Ho Chi Minh City on February 23, 2016. Photo credit: Zhong Zhenbin/Anadolu Agency/Getty Images Israel

HO CHI MINH CITY,VIETNAM - FEBRUARY 23 : People ride motorcycles at streets in downtown Ho Chi Minh City on February 23, 2016. Photo credit: Zhong Zhenbin/Anadolu Agency/Getty Images Israel

In June, Vietnamese Prime Minister Vuong Dinh Hue focused attention on the development of local entrepreneurs. Now, HCM is spending serious cash on startups

HCM City, Vietnam’s southern economic hub, will spend VND1 trillion ($45 million) to support tech startups in the city, local authorities said on Oct 24.

The funding will be spent on startup projects in sectors such as mechanics, electronics, chemicals, food production, finance, banking, insurance, commerce, transport, tourism, logistics, post and communication, real estate, healthcare, education and technology.

The first projects are each to be granted VND2 billion ($90,000) next month, while plans call for some 200 projects to benefit from the fund by 2020.

In June, Vietnamese Prime Minister Vuong Dinh Hue focused attention on the development of local startups, considering them to be important in stimulating the national economy. He also asked that a special stock exchange be created for local startups in the Southeast Asian nation.

Le Hai Tra, deputy chairman of the HCM Stock Exchange, said that innovative and unique business models could lead to quick economic growth, though he acknowledged that 90 percent of such startups fail due to a lack of business experience, despite their advanced knowledge in technology. To address this, the new fund will seek to develop startup enterprises and an entrepreneurial ecosystem.

Vietnam currently has 1,800 startup firms, 21 incubators, seven accelerators and 20 workspaces. In addition, more than 20 foreign venture funds have opened offices in Vietnam.

This article was translated from Geektime Vietnam

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