Gap between aspiration and action in start-ups activities

A survey showed that among 60 countries, Vietnam has one of the highest entrepreneurial spirits in the world. However, the country's inability to realise ideas and bring the business models into practice put it among the bottom 20 in the ranking.

This has revealed a big gap between aspirations, actions and results, thus we need more support from institutions and policies to realise our aspirations and turn our dreams into reality.

According to recent statistics from the Vietnam Chamber of Commerce and Industry (VCCI), up to 29% of 3,200 active start-up businesses in Vietnam have been reported to run out of money after a short time, and 19% end up in failure due to market competition. In addition, it is concerting that 49% of the start-ups are faltering due to engaging in activities and products that the market doesn't need.

Currently, at a time when the COVID-19 epidemic is witnessing unpredictable developments, the projects and plans of the start-ups are no longer in tune with reality.

Vietnamese start-ups are often launched by new graduates, who are full of passion and ambition but lack basic knowledge about the marketplace and management experience as well as how to apply marketing automation tools, sales management tools and financial resources to put their projects into reality.

As start-ups often do not have collateral, it is not easy for them to get business loans from banks. Therefore, they have to seek help from credit guarantee funds; however, a majority of them return home empty handed as one of the funds’ criteria to get loans is capital preservation, which is too difficult for newly-established start-ups.

In order to make start-ups thrive, it is necessary to promptly work out solutions to remove barriers regarding capital for start-ups, create a legal corridor for the establishment of an investment fund for creative start-ups; and build criteria and ways to evaluate start-up ideas.

In addition, specific financial and tax mechanisms for start-ups are needed in order to narrow the gap between aspirations and action, ideas and feasibility, thus giving wings to the development and success of Vietnamese start-ups and encouraging their practical contributions to fostering the country’s economy.