Econ
FDI enterprises pour capital and the wave of start-ups
Vietnam is becoming a safe and effective "start-up country" for foreign investors, as evidenced by data on new projects and registered capital, foreign direct investment (FDI) disbursement tends to increase in 2017.
Young people introduce start-up projects to visitors at the 2016 Start-up Festival. Photo: Chien Cong
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The coincidence and complementarity between the capital increase and the investment choice of FDI and start-up shows a substantial amount of capital from both sources of investment in the economy. FDI does not overwhelm start-up. This creates the foundation for the booming economy in the coming period when public investment is limited and the economy will operate mainly on the basis of FDI and start-ups in the long run.
Policies to improve the business environment in Vietnam provide opportunities for both FDI and start-up businesses. In 2016, the business environment is improved 9 steps compared to 2015 towards transparency, fairness and encouraging healthy competition. The advantages of FDI are large capital, high technology, modern management capacity; wide network, large scale and high competitiveness. The advantages of starting a business are the support of the Government and the community as well as the public.
In order to catch market opportunities in time, to effectively tap into development resources and incentives, start-ups need competitive driving forces, synergies and close links with each other, FDI enterprises to develop. In other words, FDI becomes a driving force for start-ups.
New policies are encouraging FDI enterprises to invest in start-ups as they have accumulated a wealth of experience in Vietnam, understanding markets, customs, habits, policies and practices. Equality of opportunity and behavior between domestic and foreign investors is increasing. This leads to the possibility of FDI enterprises to invest in preferential areas to maximize their benefits. Therefore, it is not ruled out that a strong wave of FDI inflows into business start-up from 2017, that should be well received.
