"Startups" overcomes difficulties with digital transformation

	Techfest 2019 attracts over 200 innovative startups
	Startups poised to develop strongly over next five years
	More support policies needed to boost startups, innovation: VCCI President

Phan Duc Quang

What should start-ups do before the impact of the Covid-19 pandemic?

- The Covid-19 pandemic has affected aspects of the economy across board, especially production and international trade. This is a challenge and a great opportunity for Vietnamese organisations, enterprises and startups to review and propose plans to restructure and reform business models and is a great driving force for digital transformation, focusing on digitalisation as well as making transactions via internet platforms. In particular, start-ups that are newcomers to the market must have solutions to exploit the strengths of information technology. This is a prerequisite, mandatory and "vital" for new startups in all sectors and fields.

Moreover, startups need to apply digital transformation to promote the strength of connections with associations, customers, partners, authorities, and the Government to take advantage of technical support, policies and market information promptly and effectively. We have received proposals for cooperation from foreign customers.

How do you evaluate the support of management agencies for startups?

- In Vietnam, the Government has issued effective support policies and dynamics forstartups both in terms of direct and indirect support. These support policies stimulate demand for production and business activities and help startups focus on solutions to promote production and business activities. When there are production and business activities, flow between products, goods, services and cash flow will also exist andeffectively support the sustainable development of startups

Startups are forecast to still face many difficulties in the near future, so how will they need support policies from the State?

- For support packages to promote efficiency and meet the actual situation of enterprises, a specific survey for each group affected by Covid-19 should be conducted. Thereby, management agencies will develop timely support policies for enterprises, including startups, in the information technology area like us. For example, priority areas that need capital and tradeexchangeshould be directly supported; and areas that need a long-term strategy with less priority can be indirectly supported by tax and fee policies.

I firmly believe with the new way of policy making based on responses of enterprises, the policies will be made both quickly and effectively, avoiding wasting resources. In addition, the Government also needs to speed up the process of modernisation, strongly support and encourage the application of information technology, 4.0 technology and digital transformation in economic development programs.

Logistics SMEs urged to speed up digital transformation

I have observed that countries like Singapore have many moves and support policies to create conditions for enterprises to start up and innovate by order-based support. The state will offer preferential policies to exempt, reduce taxes, fees or direct incentives for orders of enterprises. For example, if an enterprise receives a purchase order for a software technology solution, the state will provide indirect support such as extension of tax and fee payment or tax and fee exemption, or direct support ofpercentage value of the total invoice for the order.