Vietnamese Entrepreneurship: An Overview and Practical Policy Suggestions

Jason Kassel, PhDInvited Featured Speaker, OrganizerGlobal Entrepreneurship Week 2016

Vietnam Chamber of Commerce and IndustryHo Chi Minh, Vietnam

Contact: jasonkassel@gmail.com

Structure of Presentation

1. Findings from recent studies

2. VN Gov defines three types of new businesses

3. Practical suggestions

4. Conclusion

Angel.co Data - VN Compared to ASEAN Leaders

Global Startup System VN Rankings 2015 Global Entrepreneurship Monitor 2015/2016 Global Report

Global System Ranking - Top Four

Economic Environment

1. Internal Market Dynamics (11/62)

2. Cultural and Social Norms (14/62)

Government Policy

3. Tax and Regulations (15/62)

4. Physical Infrastructure (17/62)

Global System Ranking - VN Bottom Four

Government Finance and Programs

1. Entrepreneurial Finance (50/62)

2. Government Entrepreneurship Programs (50/62)

Entrepreneurial Education

3. School Stage 2.47 (47/62)

4. Entrepreneurship at Post- School Stage 4.17 (47/62)

Vietnam Compared to US (GEM 2016)

GEM Global Entrepreneurship Monitor 2016

Five Differences Between VN and Australian Ecosystem

Ecosystem analyst travelled from Australia to Israel to Vietnam to speak at

Hatch Fair 2016 and documented her thoughts.

1. Mindset

2. Funding

3. Talent

4. Collaboration

5. Networking

http://www.startupsmart.com.au/advice/growth/five-things-the-australian-startup-ecosystem-takes-for-granted/

Findings of GEM Report - Fear of Business Failure

According to the GEM report:

In more developed countries people are more likely to refrain from starting a

business due to the fear of failure.

In Vietnam, compared to other countries at the same level of development,

more Vietnamese people are likely to let their fear of failure prevent them from

starting a business.

The fear of failure in Vietnam tends to be inversely proportional to age - 55% of

people age 18-34 are scared of starting a business, while only 45.3% of

people 35-64 are.

Findings of Startup Expert (SECOEP)Limited English

Entrepreneurial Development Policy

1. Innovative Enterprise

a. doanh nghiệp đổi mới sáng tạo

2. SME

a. doanh nghiệp nhỏ và vừa

3. Startup

a. doanh nghiệp khởi nghiệp đổi mới sáng tạo

Practical Suggestions

1. MOET - Focus on Entrepreneurial Training and Improving English

2. VCCI - Focus on Startup (doanh nghiệp khởi nghiệp đổi mới sáng tạo)

3. MPI - Focus on SME (doanh nghiệp nhỏ và vừa)

4. MOST - Focus on Innovative Enterprise (doanh nghiệp đổi mới sáng tạo)

5. Entrepreneurs - Five Areas of Advice

6. Business Support Centers

Recommendations for MOET

1. Emphasize entrepreneurial teaching methods

Self actualization

Cognition

Soft skills

Business formation

2. Improve English skills

Recommendation for VCCIFocus on Startup (doanh nghiệp khởi nghiệp đổi mới sáng tạo)

Help startup businesses by connecting mentor networksHanoi

1. Hatch! Ventures

2. KisStartup

3. Hanoi Business Association

Da Nang

4. DNES

Ho Chi Minh city

5. SME Mentors Networks

6. ITP – VNU HCMC

7. Startups Vietnam Foundation

8. SHIELD

Recommendations for MPIFocus on SME (doanh nghiệp nhỏ và vừa)

Emphasize helping SMEs get access to credit

Existing program - Small- and Medium-Sized Enterprise Development Foundation (SMEDF)

Create linkages among Global Value Chain

Program under discussion - Japanese model of Local Public Technology Centre (LPTC)

Recommendations for MOSTFocus on Innovative Enterprise (doanh nghiệp đổi mới sáng tạo)

Emphasize an investment pipeline that starts with education and ends with exits.

NATEC projects need to be coordinated and work together

Vietnam Climate Innovation Center - Universities

Vietnam Silicon Valley - Incubator and accelerator

VIISA - Accelerator

Maintain Startup Nation focus

Continue enabling experimentation in provinces and municipalities

Recommendations for Entrepreneurs

1. Communicate with Other Entrepreneurs

2. Research Business Opportunities

3. Learn Soft Skills

4. Learn English

5. Find a Mentor

Final Recommendation: Business Support Centers

Problem 1: Supporting industries in Vietnam are fragmentedProblem 2: There is virtually no linkage among small businessesProblem 3: Linkages between businesses and management agencies, research institutes

and training facilities are not close

Recommendation: Sixty-three provinces each have two business support centers (126 total) that are managed by the Department of Planning and Investment and the Department of Industry and Trade. All of these should be upgraded with an initial investment into equipment and capacity building assistance.

Conclusion

Vietnam can have a bright entrepreneurial future.

The Vietnamese Government is doing things very smart and very aggressively.

By dividing new businesses into three unique categories, the government has made it easier for agencies and departments to focus.

MOET, VCCI, MPI and MOST all have unique roles to play in promoting entrepreneurship.

Focusing on existing activity and policy can help Vietnam move to Startup Nation goals.