Deputy PM suggests setting up a stock exchange for start-ups

By Vuong Duc Anh   June 8, 2016 | 08:20 am GMT+7

Deputy Prime Minister Vuong Dinh Hue has requested for an establishment of a start-up stock market through the collaboration between state agencies and Ho Chi Minh City (HCMC).

The suggestion was put forward during a conference held at HCMC Stock Exchange on June 7 about searching for start-up capital, attended by Vietnamese commissions and a delegation of experts working in the Financial Services Commission from South Korea.

Deputy PM Hue said innovative and creative startup projects are generally risky. According to him, using the banking system as a main source of financing those projects might be no longer appropriate as it poses a systemic risk to the financial safety of each bank.

Hue hoped through the experience of domestic and South Korean experts in mobilizing and organizing venture capital fund, HCMC Stock Exchange will be able to build up a stock exchange market for startup projects and businesses.

In addition, the deputy PM also suggested the financial experts to contribute their ideas on the development of a venture capital funds of the government to support entrepreneurship.

“Start-up projects that are in its early stage will require an amount of capital which is often beyond the financial capacity of the entrepreneur. The venture capital fund of the government, which will operate under the market mechanism, will provide the needed support for the start-up projects at this stage,” said Hue.

The deputy PM also asked experts to give suggestions on how to organize the fund, as well as how to attract venture capital funds from the private and foreign businesses in Vietnam. Hue said, through the conference, the Vietnamese government expected to hear specific recommendations to foster the spirit of building start-ups.

“Vietnam hopes to achieve the goal of having at least one million operating start-ups by 2020. The government will wholeheartedly support the new businesses and will help them in their early stage,” Hue said.

On the same day, Deputy PM attended the signing ceremony of the Memorandum of Cooperation between the Financial Supervisory Commission of Vietnam and the Financial Services Commission of South Korea.

Both financial institutions of the two countries will exchange views and share experiences on issues related to the financial supervision model, operation mechanism, personnel training and technical support, according to the agreements stated in the memorandum.

Tags: start-up
 
 
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