The legal corridor for innovative startups is still lacking and weak.

On October 12, the Ministry of Science and Technology and the People's Committee of Da Nang City organized a workshop on "Organizational model and operation of the innovation and start-up center (KNĐMST).

Lack - weak - stuck

At the workshop, Mr. Pham Hong Quat, Director of the Department of Market and Enterprise Development (Ministry of Science and Technology) said that the level of spending on domestic and foreign experts is very low and insufficient. There is no support mechanism for sending domestic startups abroad and vice versa; capital contribution to funds, regulations on capital preservation management of enterprises when using capital are also lacking, entangled in the law on capital preservation. Decree 109 provides many good regulations, linking universities, enterprises, corporations, funds but there are no detailed instructions; the green channel for intellectual property procedures is still not specific...

Most notably, the legal corridor for managing and operating the organizational model and activities of the Center for Innovative Startups is unclear, so many localities are still confused.

Mr. Nguyen Viet Dung, Director of the Department of Science and Technology of Ho Chi Minh City shared. Photo: XUAN QUYNH

According to Mr. Nguyen Viet Dung, Director of the Department of Science and Technology of Ho Chi Minh City, the locality has established the Ho Chi Minh City Center for Creative Entrepreneurship at a cost of more than VND320 billion. This is a public service unit operating in the field of science and technology. According to the plan, the locality will use 2 floors to support community activities, and the remaining floors will invite private sector creative innovation organizations to participate. However, when implementing, the locality is stuck with the mechanism.

“The State has a creative role, so the primary function of the Center for Innovative Startups is still to provide resources, facilities, infrastructure, etc. for the community. However, we have not been able to advise the Ho Chi Minh City People's Committee because there is no clear financial mechanism and no legal corridor to attract private investment. This is about leasing public assets. However, in essence, this is not true. Because this is a creative urban model in which there are many facilities provided by the State to society, calling for their investment,” Mr. Nguyen Viet Dung presented.

Mr. Le Duc Vien, Director of the Department of Science and Technology of Da Nang presented at the workshop. Photo: XUAN QUYNH

Agreeing, according to Mr. Le Duc Vien, Director of the Department of Science and Technology of Da Nang City, the legal corridor for managing and operating the KNĐMST is still open, especially the mechanism for leasing the use of assets. Even Decision 188 amending and supplementing Decision 844 on approving the project to develop the national startup ecosystem in 2025 is only a separate administrative document on a specific project. To implement it, it must be affected by many other laws. In addition, Circular 45 of the Ministry of Finance clearly stipulates that no more than 10 projects can be supported in a year; support for startup activities can only be done once every 2 years.

Forming a general model

At the workshop, according to the Director of the Department of Science and Technology of Da Nang City, it is necessary to form a strong enough National Center for Supporting Innovative Startups with full legal mechanisms and appropriate incentive policies. The model must be a public, non-profit unit, with the State ensuring 100% of operating costs, only then will it be strong enough.

Startup booths in Da Nang. Photo: XUAN QUYNH

Mr. Le Duc Vien also recommended that there should be a policy of exemption from corporate income tax and personal income tax for business activities, capital transfer and purchase related to innovation activities. There should be regulations allowing the implementation of the PPP model for investment in incubators and research centers. There should be regulations allowing public service units in the fields of science and technology and innovation to exploit public assets in the direction of State management and private exploitation and operation through ordering.

Regarding the solution, Mr. Nguyen Viet Long, Director of the Department of Science and Technology of Binh Duong province, said that there should be a special mechanism of the State to give incentives in this field, not only for the public sector but also for the private sector. However, we must be very careful in massively building science and technology centers, because not every locality can do it, if the market does not exist, the demand is not urgent, it can step on the role of the incubator.

Overview of the workshop. Photo: XUAN QUYNH

“We need to change our thinking and awareness. Science and technology resources must sometimes be seen as a source of funding, not public investment, accepting risks, accepting waiting to make a profit. And if science and technology make a profit, it will make a huge profit. Therefore, we need a plan to enhance the role of science and technology, not mixing or integrating because this will be the trend, many countries in the world have done it,” Mr. Nguyen Viet Long suggested.

Meanwhile, according to Mr. Luu Binh Nhuong, Deputy Head of the People's Petition Committee, the National Assembly Standing Committee, there should be a policy proposal from the locality drawn from practice and a change in thinking because those working in science and technology must accept risks. He suggested that the Ministry of Science and Technology propose a Government Resolution, not a normative document allowing the Prime Minister the right to issue a new decision on a new policy. Or through the National Assembly Delegation, the National Assembly has a Resolution for the science and technology sector to implement. This is the best way because if a Decree is made, it depends on lawyers and the procedures are quite difficult.

Mr. Huynh Thanh Dat, Minister of Science and Technology, concluded at the workshop. Photo: XUAN QUYNH

After the discussion, according to Mr. Huynh Thanh Dat, Minister of Science and Technology, the Ministry is currently submitting a proposal to the Prime Minister to seek the National Assembly's opinion on the effective use and management of public assets. This policy is to serve to accelerate the innovation and service products of enterprises in the market.

At the same time, implement the work of synthesizing, reporting, measuring, and checking indicators and criteria for evaluating the performance of innovation and start-up centers. The Ministry of Science and Technology considers using these criteria to provide technical support and international experts for localities. Guide the criteria and functions of innovation and start-up centers to develop synchronously and effectively, thereby building activities in the right direction. Each locality must be the subject in organizing, implementing, establishing, and operating innovation and start-up centers. Localities with key activities such as innovation provide, guide, and support for innovative start-up businesses, organize regional and local events, and raise issues with the difficult problems and challenges of the government for the innovation and start-up community.

For proposals and mechanisms on policies to support the development of innovative enterprises, functional units will be assigned to synthesize and submit to competent authorities for supplementation in order to amend and issue new legal documents.

Source: https://www.sggp.org.vn/hanh-lang-phap-ly-cho-khoi-nghiep-doi-moi-sang-tao-con-thieu-va-yeu-post709545.html