Decision No. 844/QD-TTg dated May 18, 2016 of the Prime Minister approving the “assistance policies on national innovative startup ecosystem to 2025”

THE PRIME MINISTER

Decision No.844/QD-TTg dated May 18, 2016 of the Prime Minister approving the “assistance policies on national innovative startup ecosystem to 2025”

Pursuant to the Law on Government organization dated June 19, 2015;

Pursuant to the Law on science and technology dated June 18, 2013;

Pursuant to the Government’s Resolution No.46/NQ-CP dated March 29, 2013 on action programs for the implementation of the Resolution No.20-NQ/TW on Science and technology development for industrialization and modernization under socialist-oriented market economy and international integration dated November 11, 2012 by the Central Committee of the eleventh Communist Party at the sixth Meeting;

Pursuant to the Government’s Resolution No.19/2015/NQ-CP on missions and measures for improving business conditions and national competitiveness for the period of 2015-2015 dated March 12, 2015;

Pursuant to the Government’s Decree No.08/2014/ND-CP detailing a number of articles of the Law on science and technology dated January 27, 2014;

At requests of the Minister of Science and Technology,

DECIDES:

Article 1.To approval for the assistance policy on national innovative startup ecosystem to the year 2025 (hereinafter referred to as “the Scheme”) that contains the following main contents:

I. OBJECTIVES

To create a favorable conditions for the development of enterprises that have potentials for rapid growth by utilization of propriety assets, technology and business initiatives.

To promptly complete legislations on assistances in startup ecosystems; to set up a national startup ecosystem portal; to provide an estimated funding of 1,000 billion dong for 800 startup projects and 200 startups including 50 enterprises financed with venture capital.

By 2025, it is expected to have:

-2,000 startup projects;

-600 startups;

-100 startups under the Scheme financed by venture investors with the estimated amount of 2,000 billion dong.

II. BENEFICIARIES

1.Individuals or groups having startup projects or startups that may be potential for rapid growth by utilizing propriety assets, technology and new business initiatives; or startups operating for not exceeding 05 years from date on which the first enterprise registration certificate is issued.

2.Organizations that supply services, facilities, technical infrastructure, telecommunications services and provide investment in startups and satisfy the following requirements:

a) The head of such organization works in the field of investment and finance consultation, and enterprise development facilitation for at least 01 year;

b) The organization operates for at least 01 year and provides services for at least 10 startup groups and invests in or mobilizes the amount of capital of at least 01 billion dong for startups in Vietnam;

c) The organization introduces a specific procedure for assistance in startups according to their functions and responsibilities and cooperation agreements on provision of training and consultation for Startups in Vietnam with domestic and overseas entities.

III. ACTIVITIES

1.Set up a national startup portal that provides information on technology, patents, standards, quality control and measurement, intellectual property rights; policies and regulations of laws, human resources, sources of finance and transactions; partners, customers, products, services, new business models; investors national and international startup events and other activities.

2.Construct centralized startup assistance service centers (hereinafter referred to as “center”) in provinces that have potentials for development of startup activities, by:

a) Funding part of repairing costs for working space (available space..) at favorable location such as near universities, financial institutions, etc. and applying concessional charges for the use of such infrastructures;

b) Funding for the installation of information technology infrastructures and providing complementary Internet services in such centers;

c) Hiring private enterprises to repair infrastructures and equipment and paying for them, managing and using centers, providing training and consulting services, human resources, offices and shared equipment for startups.

3.Allocate funding from the State budget for science and technology to hold annual national Technology Festival(TECHFEST).

Regulatory authorities, socio-political-professional organizations, research institutes, training facilities potential for startups development shall provide funding for offices, exhibition, transport, telecommunications, startups events and competitions.

4.Execute the national technology commercialization scheme to the year 2020 by:

a) Setting up business networks on the basis of potential startups and providing initial investments for startups;

b) Setting up individual investor networks and venture capital networks for startups.

5.Promote training activities and enhance services quality and startups capacity by:

a) Funding part of curriculum copyright fees, and costs of startup training programs, circulation and transfer of curriculum piloted in Vietnam and overseas to training facilities and incubators and trade promotion organizations.

b) Funding part of fees for hiring domestic and foreign specialists to teach training courses for startups professionals in training facilities, startup incubators and trade promotion organizations;

c) funding part of startups’ labor salaries and services charges such as: startup training, marketing, product and services promotion, technology and patient application, financial assessment, assessment of scientific research findings, technology innovation and propriety assets, legal consultation, investment in and establishment of science and technology enterprises, commercialization of scientific research finding, technology and propriety assets.

6. Invest infacilities and technical infrastructures for startup activities by:

a) Funding part of costs for renovation of facilities –technical infrastructures of startup incubators, trade promotion organizations, startups’ equipment suppliers and startups, and consultation fees for science and technology enterprise incubators and projects for technology incubators and science and technology enterprise incubators;

b)Funding forpart of startups’ costs for digital space, online support services, pilot production, samples and technology.

7. Provide funding forpart of costs for media programs for startup activities, startup assistance and investment and propagate Vietnamese typical successful startups

8.Provide funding for part of costs for startup networks, startup assistance networks, and venture capitals in Vietnam and all over the world; cooperate with overseas prestigious trade promotion organization to provide medium –term and short –term training courses for startups and provide part of funding for such courses.

9.Facilitate the market penetration of domestic startup partners, investors, investor facilitators and startups via scientific and Vietnamese overseas technological representatives and commercial representatives.

10.Allocate science and technology development funds of regulatory authorities, Government Offices, local and central government and enterprises for part of costs for technology innovations, testing and market research; and grant concessional loans or borrowings and contribute capital to startups.

11.Propose new legislative documents, amendments or supplements to legislative documents on startups development as follows:

a) Procedures for registration of establishment and operation of venture capital firms/investors;

b) Assistance policies on State’s initial investment and follow-up investment in Startups;

c) Startup assistance policies by regulatory authorities where necessary;

d) Specific tax and finance regimes for startups and investors eligible for incentive investment policies and tax incentives (for science and technology enterprises);

dd) Policies for domestic and foreign investors’ divestment.

IV. FUNDING FOR SCHEME EXECUTION

1.The scheme is funded with:

a) The State budget for science and technology granted to the Ministry of Science and Technology and regulatory bodies of provinces;

b) The State budget granted to regulatory authorities of provinces, research institutes and training facilities;

c) Funding granted to socio-political-professional organizations by the State;

d) Other legal sources of finance of domestic and overseas organizations, individuals and funds.

2.Regulations on funding and amount of funding for scheme activities shall conform to current regulations on financial management of science and technology market development by 2020, programs for assistance in public and autonomous science and technology enterprises and science and technology organizations, national technological innovation program to 2020, regulations on construction norms and estimates, allocation of funding for science and technology activities financed by the State and other relevant regulations.

Article 2. Implementation organizations

1.The Ministry of Science and Technology shall:

a) Introduce operation regulations of the Administration Board of the Scheme and procedures for application processing;

b) Take charge of making plan for scheme execution and executing the Scheme;

c) Set up the national startup portal, Scheme management system and Startup assistance services centers in Hanoi and Ho Chi Minh city and hold TECHFEST;

d) Select qualified entities to join the Scheme including organizations experienced and qualified for assisting startups;

dd) Cooperate with relevant authorities to study and propose new legislative documents, amendments or supplements to boost startups development.

e) Take charge of compiling annual plans for science and technology, estimates and funding allocation, mobilizing funding from programs, funds and investment projects , domestic and overseas startups projects that are suitable with the Scheme;

g) Preliminarily and finally evaluate the Scheme progress. Annually submit scheme execution progress reports to the Prime Minister.

2.The Ministry of Finance shall:

a) Negotiate with the Ministry of Science and Technology about the amount of funding and items of funding for startups activities under regulations of laws.

b) Arrange finance for Scheme execution.

3.Every Ministry, ministerial-level, Government Office and the People’s Committee of provinces, Vietnam Chamber of Commerce and Industry, Communist Youth Union of Ho Chi Minh City and socio-political-professional organizations shall:

a) Prepare annual and 5-year startup assistance plans according to this scheme;

b) Secure funding for activities of annual and 05-year plans approved by competent authorities cooperate with private enterprises to invest in startups.

4.The State Capital Investment Cooperation shall study and propose mechanism for capital contribution for setting up funds and fund management companies to grant loans and investments in startups.

5.Regulatory authorities providing assistance for startups shall submit annual report on the Scheme execution progress, achievements and issues to the Ministry of Science and Technology.

Article 3. Implementation

This Decision takes effect on the signing date.

Ministers, heads of ministerial-level authorities, heads of Government Offices, presidents of People’s Committees of provinces, socio-political-professional organizations and relevant authorities shall be responsible for the implementation of this Decision./.

For the Prime Minister

The Deputy Minister

Vu Duc Dam