Ho Chi Minh City authorities have promised to provide VND2 billion (US$87,743) worth of financial support for each potential start-up model developed by young entrepreneurs.
According to the municipal Department of Science and Technology, the support package is part of a program aimed at connecting the business community, schools, institutes, investors, training centers, and service providers in the southern hub from now until 2020.
The agency will start receiving applications for the financial assistance in January 2017.
More attention will be paid to such fields as engineering, automation, medicinal chemistry, plastic and rubber, electronics and technology, food processing, and biotechnology.
Individuals and organizations that have operated in the city in the past five years and have not received any support from the national budget will be eligible for the program.
Following thorough discussions from a board of judges, each business model that shows potentialities will be granted a maximum amount of VND2 billion ($87,743) within a period of less than 24 months.
The program was designed to provide more resources for the startup community while encouraging innovation in the city, said Nguyen Viet Dung, director of the municipal Department of Science and Technology.
“It will create a foundation for Ho Chi Minh City to become the city of startups and innovations,” the official stated.
Aside from the financial support, the city’s science department has also provided the local startup community with training lessons and consultation during their beginning phase as well as organizing special events for them to introduce their products.
The department and 11 training centers from local universities have signed a memorandum of understanding on boosting startup models in the southern city.
According to Le Thanh Liem, standing vice-chairman of the municipal People’s Committee, startup models and innovative operations are the central pillars of a successful business.
Authorities in Ho Chi Minh City are taking many measures to attain the goal of having 500,000 businesses with effective operations by 2020.