(CLO) On March 19, in Hanoi, Nhan Dan Newspaper in collaboration with the Institute of Digital Economic Development Strategy (IDS) organized a seminar on "Creating capital market leverage for Vietnamese technology companies to make breakthroughs in the digital age".
Speaking at the seminar, Mr. Le Quoc Minh, Member of the Party Central Committee, Editor-in-Chief of Nhan Dan Newspaper, Deputy Head of the Central Propaganda and Education Commission, Chairman of the Vietnam Journalists Association said: “Experience from developed countries shows that after the initial incubation period, large domestic technology enterprises hold key positions in the innovation ecosystem. Therefore, today's seminar will focus on discussing the role of the capital market in supporting the development and innovation of technology companies in Vietnam; discussing current trends in venture capital and private investment in the technology sector in Vietnam and Southeast Asia, as well as investors' expectations”.
Mr. Le Quoc Minh, Member of the Party Central Committee, Editor-in-Chief of Nhan Dan Newspaper, Deputy Head of the Central Propaganda and Mass Mobilization Commission, President of the Vietnam Journalists Association. Photo: Nhan Dan Newspaper
Leading technology countries such as the United States, China and Singapore all have developed capital markets, allowing technology startups to raise capital from the public through initial public offerings (IPOs), thereby creating “unicorns” – companies valued at more than $1 billion. In Vietnam, although the startup ecosystem has developed strongly, the number of “unicorns” is still limited due to obstacles in support mechanisms, especially in clearing capital flows. As of the end of 2021, Vietnam had 4 recognized technology unicorns: VNG, MoMo, VNLife (VNPay) and Sky Mavis – making Vietnam the third largest in Southeast Asia, after Singapore and Indonesia.
The Institute for Digital Economic Development Strategy (IDS) stated that Vietnam currently has a number of technology companies with the potential to compete internationally, but these businesses cannot grow due to barriers to raising capital to develop their scale. Specifically, according to the provisions of the Securities Law No. 54/2019/QH14 in 2019, to conduct an IPO on the Vietnamese stock exchange, businesses must ensure that they have made a profit for 2 consecutive years before registering for an IPO and have no accumulated losses. This provision is very difficult to implement for technology startups, because the initial investment phase is often accompanied by temporary losses due to high investment costs for research and development.
Delegates attending the seminar "Creating capital market leverage for Vietnamese technology companies to break through in the digital age". Photo: Nhan Dan Newspaper
To turn Vietnam into a center for digital technology industry development, with at least 5 digital technology enterprises reaching international stature by 2030 as set out in Resolution No. 57-NQ/TW, the discussion focused on raising issues arising from practice, thereby proposing specific solutions that can be implemented immediately.
The organizers hope that with a lot of specific and practical information, lessons learned, and policy recommendations of high practical value, the discussion will contribute to the implementation of Resolution No. 57 - an important decision considered as "Contract 10" of the 21st century.
Ms. Pham Thuy Chinh, Vice Chairwoman of the National Assembly's Economic and Financial Committee, affirmed: Resolution No. 57-NQ/TW has clearly stated that institutions must go one step ahead, creating a foundation for innovation. The National Assembly will continue to perfect legal regulations to support technology enterprises in accessing the capital market. According to experts, in order for Vietnamese technology enterprises to make a breakthrough, there must be breakthrough policies in the capital market. Solutions such as easing IPO conditions, building a separate trading floor for technology enterprises and attracting talent will be important steps to help Vietnam become a center of innovation in the region.
Mr. Le Quoc Minh, member of the Party Central Committee, Editor-in-Chief of Nhan Dan Newspaper, Deputy Head of the Central Propaganda and Education Commission, President of the Vietnam Journalists Association presented flowers to thank representatives of international financial institutions, diplomatic agencies in Vietnam, and many economic experts... Photo: Nhan Dan Newspaper
Opinions at the Forum also discussed and offered suggestions, contributing to perfecting policies, creating a vibrant capital market, aiming for the goal of having at least 10 technology “unicorns” by 2030 as expected by Resolution No. 57. This is also a strategic problem for Vietnam to position itself in the global innovation race.
Source: https://www.congluan.vn/bao-nhan-dan-to-chuc-toa-dam-ve-don-bay-thi-truong-von-de-viet-nam-but-pha-trong-ky-nguyen-so-post339231.html
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