Vietnam spending $400K to build own Silicon Valley for startups

Under the government-run project Silicon Valley Vietnam, two accelerators will be set up: one in Hanoi and another in Ho Chi Minh city. This is part of plans to groom startups and eventually link them up with venture capital.

Vietnam has launched a project to emulate a Silicon Valley environment to grow its startup ecosystem.

The plan will start with two accelerators set up in two of the country's largest cities: Hanoi and Ho Chi Minh city, according to Tech In Asia. It added the project will start with US$400,000, which will be allocated toward incubation, acceleration, seed funding, and eventual exits.

svv
(source: siliconvalley.com.vn)

The project dubbed Silicon Valley Vietnam (SVV), is aimed at creating an ecosystem for the matching up of innovations and capital, said Vinh Q Tran, special advisor to the Ministry of Science and Technology, during a presentation earlier this month at the opening ceremony.

"The Vietnam economy is no longer a tiger, but a pussycat. In the longer term, it remains weak." 

Vinh Q Tran,
Special advisor to Ministry of Science and Technology

"Vietnam has to do this SVV project to stimulate growth of startups. Because the Vietnam economy is no longer a tiger, but a pussycat. In the longer term, it remains weak," he said.

Vinh Tran explained the business reality for Vietnamese startups was not as simple compared with America's, as there was often a gap between an entrepreneur's idea, and its execution plan and marketing to investors.

"As a result of this reality, SVV develops a number of strategies to bring the Silicon Valley Model to Vietnam. These strategies are designed to provide entrepreneurship development and mentoring to the startup founders," said Vinh Tran.