Good gender equality, will start-ups raise capital more effectively?

Start-ups with a transparent and serious approach to gender equality will have certain advantages in raising capital, according to a representative of a venture capital fund.

Interest in gender equality in the workplace in Vietnam has increased significantly in recent times - Photo: TQ

At the launch Speaking at the GEARS@VIETNAM program, an initiative of the Australian Government to promote economic equality for women, in Ho Chi Minh City on January 16, Ms. Ly Khanh Hau - partner of the investment fund Ascend Vietnam Ventures (AVV) - said that in the technology field, female personnel are always a rare workforce.

Gender inequality in start-ups

The organization’s 2021 survey found that in Southeast Asia, less than 20% of venture-backed startups have at least one female founder. Meanwhile, on the venture capital side, more than 70% of venture capital funds do not have a female partner.

"That is why ESG (Environment - Social - Governance) criteria in gender equality are important. The trend is that investment capital flows pay more attention to the story of gender equality, start-ups that have a serious and transparent approach to this factor in their investments will have an advantage in accessing capital.

However, in the current difficult economic situation, this is just one of the factors investors consider," said Ms. Hau.

Ms. Tran Ngoc Thao - CEO of TMS Vietnam - said that currently, technology companies, which are more male-oriented than female-oriented, have included incentives for female candidates when posting jobs.

When recruiting, if a male candidate scores 8 points and a female candidate scores 6 points, many companies still prioritize female candidates to meet gender balance requirements. Multinational companies currently prioritize 40-60 or 30-70, and some French companies even set a 50-50 criterion.

"In the changing working environment with the "invasion" of the Gen Z workforce with new awareness of freedom and equality, as well as with the strict standards of the world market, DEI (Diversity, Equity, Inclusion), which means diversity, equality and inclusion, are becoming increasingly important," Ms. Thao shared about the trend.

Female business ownership is still low

In Vietnam, attention to gender equality in the workplace has increased significantly thanks to state policies and international integration. The 2006 Law on Gender Equality and the Labor Code clearly stipulate the prohibition of gender discrimination in recruitment, salary, training, promotion and other activities.

Currently, Vietnam has one of the highest female labor force participation rates in Southeast Asia. However, there is still a gap between female and male participation.

According to the General Statistics Office in 2022, the female labor force participation rate was 62.7%, 12.8 percentage points lower than the male rate of 75.5%. In addition, the rate of female business ownership is still quite low, around 20%, and is mainly concentrated in small and medium enterprises.

Ms. Maya Juwita, Director of Gender Equality in the Workplace, Investing in Women believes that GEARS@VIETNAM will strategically address the key challenges facing women in the private sector in Vietnam, including enhancing career development support activities as well as ensuring a safe and conducive working environment for employees.

“Following our success in other countries such as the Philippines, Indonesia and Myanmar, we will partner with businesses and policymakers to create systemic change and deliver lasting benefits for all genders,” said Maya Juwita.

The GEARS@VIETNAM program is designed to help businesses address issues related to gender, diversity and inclusion in the workplace in a strategic and comprehensive way.

Participation in this program provides businesses with the opportunity to gain validation and solid evidence of their social responsibility efforts to support their ESG reporting.

Source: https://tuoitre.vn/binh-dang-gioi-tot-start-up-se-goi-von-hieu-qua-hon-20250116192523926.htm