Vietnam to drive high-tech startups with new incentives | TOMOYA ONISHI – Nikkei Asia Review

HANOI — Vietnam will launch a program to accelerate the founding of startups in information technology and other high-tech businesses in a bid to boost the country’s growth potential as COVID-19 weighs on the economy.

Starting on Oct. 5, the new program is a set of incentives to encourage innovative startups engaged in “telecommunications businesses, information technology, automation and other related businesses,” according to a decree approved at the end of August. Startups engaged in “new and clean energy” and in the “production of intermediate goods participating in value chains and industry clusters” are also eligible.

The launch comes as Vietnam’s economy suffers a slowdown due to the pandemic. Hanoi is set to lower this year’s growth target for gross domestic product to 2-2.5%, down from the level of over 5% announced in May before the resurgent coronavirus started spreading in July.

The program provides incentives to a list of startups setting up their offices in industrial parks including Hoa Lac Hi-Tech Park, a new flagship facility in Hanoi. Startups are exempted from the entire cost of land leases for 50 years. The state will cover the cost of the use of infrastructure in Hoa Lac and also fund land clearance and basic preparations for setting up offices.

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