Ho Chi Minh City wants to support startups from the moment they have an idea
The Department of Science and Technology of Ho Chi Minh City is collecting comments on a draft Resolution stipulating a non-refundable support policy from the city budget for costs of incubating creative start-up projects. Accordingly, the policy is designed according to the development journey of a startup, from the time the idea is first formed until the product is accepted by the market and the business enters the growth phase.
The project is divided into three phases including pre-incubation, incubation and acceleration, with corresponding support levels of 50, 100 and maximum 500 million VND. Compared to the current policy, the support level for each stage increases by 25%.
At the pre-incubation stage, the project does not necessarily have a finished business or product. The project owner can be an individual, group of individuals or business developing an idea or solution to solve a problem or meet a market need.
The support at this stage is to help the startup team research the market, refine the idea, and develop an initial prototype or test model. The maximum total support is 50 million VND per project, lasting no more than 6 months. Of which, 20 million VND supports direct labor wages for project implementers and 30 million VND is for incubation costs.
Once a project has established a minimally viable product, service or solution and has begun testing with customers or target markets, it can enter the incubation stage.
At this stage, startups are supported with a maximum of 100 million VND for no more than 12 months, including 40 million VND in direct labor wages and 60 million VND in costs for the incubation center. The funding is used to support product improvement, business model, operating capacity, intellectual property and necessary conditions to establish or develop a business.
The highest level of support is reserved for the acceleration phase, when the product or service has gained market acceptance, customers or revenue. Projects at this stage can receive a maximum support of 500 million VND in 12 months, including 185 million VND in direct labor wages and 315 million VND in costs for the operation of the incubation center.
Startups are supported to expand the market, develop scale, improve management capacity and mobilize capital. Projects with counterpart capital from investors or other legal sources are given priority for consideration.
The grants are not entirely transferred directly to the startup owner. Part of the funding is used to hire consultants, train, coach and advise; Providing services in technology, legal, finance, administration, intellectual property, marketing, investment connection and capital mobilization.
Funds can also be used for testing, technology evaluation, product and business model improvement, market development, trade promotion, use of incubator facilities, workspace and technical infrastructure to serve the project.
According to the Department of Science and Technology of Ho Chi Minh City, dividing startups into stages aims to associate support policies with the maturity level of the project and output results. The draft also sets clearer requirements for outputs at each stage, while increasing the responsibilities of incubation centers in selecting, supporting and managing projects.
During the 2024-2025 period, Ho Chi Minh City has supported 35 tasks with 179 creative startup projects, with a total budget of more than 18.3 billion VND. It is expected that if the new policy is approved and implemented, the total estimated funding need is about 60 billion VND per year.
Le Tuyet