THAI NGUYEN UNIVERSITY UNIVERSITY OF ECONOMICS AND BUSINESS ADMINISTRATION PHAM THI QUYNH NGA SOLUTIONS TO PROMOTING STARTUP ACTIVITIES IN VIETNAM Specialized Economic Management Code 9 31 01 10 SUMMA[.]
THAI NGUYEN UNIVERSITY UNIVERSITY OF ECONOMICS AND BUSINESS ADMINISTRATION PHAM THI QUYNH NGA SOLUTIONS TO PROMOTING STARTUP ACTIVITIES IN VIETNAM Specialized: Economic Management Code: 31 01 10 SUMMARY OF DOCTOR THESIS IN ECONOMICS THAI NGUYEN - 2023 The dissertation was completed at: UNIVERSITY OF ECONOMICS & BUSINESS ADMINISTRATION – THAI NGUYEN UNIVERSITY Science supervior: 1.Dr Pham Cong Toan Dr Ngo Thi Viet Nga Referee 1:…………………………………………………… Referee 2:…………………………………………………… Referee 3:…………………………………………………… The dissertation was held in front of the committee of Thai Nguyen University: UNIVERSITY OF ECONOMICS & BUSINESS ADMINISTRATION At….…………… Date…………… Be able to find out at: - Digital Center - Thai Nguyen University - Library of Economics and Business Administration University - National library LIST OF RESPECTED PUBLICATIONS OF THE AUTHOR RELATED TO THE DISSERTATION Pham Thi Quynh Nga (2021), “Promoting the university - enterprise cooperation”, Viet Nam trade and industry review, No 23, in Oct 2021 (p 161-165) Pham Thi Quynh Nga (2022), ”Start-up policies of global countries and experience for Vietnam”, Review of finance, Term 2, in Nov 2022 (p 8992) Pham Thi Quynh Nga (2023), “Current startup support policies and solutions to facilitate the growth of startups in Vietnam, Viet Nam trade and industry review, No 1, in Jan 2023 (p 72-77) Pham Thi Quynh Nga (2023), “Factors influencing entrepreneurial activities in Vietnam”, Viet Nam trade and industry review, No 2, in Jan 2023 (p 186-191) INTRODUCTION Research issue Starting a business and developing businesses is a major policy of Vietnam, mentioned in the document of the 12th National Congress of the Communist Party of Vietnam and reaffirmed by the 13th Congress with greater determination in the direction of "Promoting Strengthen national digital transformation, develop digital economy on the basis of science and technology, and innovation; Improve productivity, quality, efficiency and competitiveness of the economy, harmonize and effectively integrate domestic and international markets In recent years, the Communist Party of Vietnam and State of Vietnam have had many guidelines and policies to create the most favorable conditions and environment for startup activities to form and develop Specifically, Decision 844/QD-TTg of the Prime Minister in 2016 on approving the Project "Supporting the National innovation startup ecosystem until 2025" or Project 844 for short has created a legal foundation important for the startup and innovation ecosystem to develop strongly in Vietnam At the same time, ministries, branches and localities also have their own programs and projects to promote the national startup movement Most provinces and centrally run cities have issued plans to implement Project 844 to support the startup ecosystem to support longterm startups Over the past ten years, the country's economy has witnessed the formation and dynamic development of the startup movement when Vietnam ranked 54/100 global startup ecosystems, with 84 incubators, 116 patents granted, 35 business promotion organizations and 208 venture capital funds At the same time, our country has many active enterprises, 857,551 enterprises and 116,839 newly established enterprises in 2021 In addition, startup firms reduce the risk of unemployment, contributing to economic restructuring, reducing the gap between rich and poor, and promoting the nation's scientific and technological development Although encouraging initial results have been achieved, due to a slower starting point, Vietnam's innovation and startup ecosystem still has a gap compared to some countries in the region and worldwide The past five years have shown that solutions to promote startup activities in Vietnam still have many problems and difficulties Specifically, support policy documents for private enterprise beneficiaries are still unclear, activities connecting, deploying and transferring technology between startups, research institutes, and universities; Application support and technology transfer are still not highly effective In addition, financial support policies, credit access and premises, although available, are all general regulations, not specific to the region and not have detailed instructions, leading to the lack of uniformity in action At the same time, human capital is lacking and weak due to the connection between universities and research institutes in Vietnam with provincial authorities, ministries and central branches In the future, for the startup movement to develop strongly and sustainably, Vietnam needs to develop appropriate policies and legal regulations quickly At the same time, the Government needs to have specific programs to help form and develop new startup businesses, of which the most important thing is to establish financial mechanisms to participate with the private investment sector in startup activities It will help narrow the gap and turn Vietnam into a strong startup country For the above reasons, it is necessary to identify and clarify the current situation, find the main factors affecting the promotion of startup activities, and then come up with solutions to promote startup activities Contributing to building solid and sustainable economic development is necessary for Vietnam's current context From that perspective, the author chose "Solutions to promote startup activities in Vietnam" as a research topic The study objectives 2.1 General objective The thesis was carried out with the goal of systematizing the theoretical and practical basis from which to propose solutions to promote startup activities in Vietnam until 2030, with a vision to 2035, contributing to building and developing the economy economy; At the same time, perfecting the startup ecosystem towards sustainable economic growth in Vietnam 2.2 Specific objectives - Systematize the theoretical basis of startup and promote startup activities - Analyze and evaluate the current situation of promoting startup activities in Vietnam - Analyze factors affecting startup activities in Vietnam - Propose solutions to promote startup activities in Vietnam until 2030, with a vision to 2035 Object and scope of the study 3.1 Research object The research object of the dissertation is issues related to promoting startup activities in Vietnam 3.2 Scope of the study - Location scope: The dissertation is carried out in Vietnam - Time scope: The dissertation collects secondary data from 2017 2021 Primary data is collected from February 2022 to December 2022 The proposed solution is proposed until 2030, with a vision to 2035 - Scope of content: The dissertation focuses on analyzing several main contents related to promoting startup activities, including developing and promulgating policies to encourage startup activities; supporting the development of startup ideas; Building and linking components in the startup ecosystem; Supporting the development of startup businesses in Vietnam and inspection and supervision of support for startup activities Due to limitations in time and scope of research, in the dissertation, the author limited the study to private enterprises that were established in the five years 2017 - 2021 Contributions of the dissertation The dissertation has made important contributions both theoretically and practically as follows: Firstly, the dissertation has systematized and completed one step of the theoretical issues on promoting entrepreneurship activities: the concept of promoting startup, fundamental theories, characteristics and roles, content promoting startup, and factors affecting startup activities Second, the dissertation is based on the content of promoting startup activities to evaluate experiences in several countries such as India, Israel, Singapore, and Sweden to see the strengths, weaknesses and causes for drawing five lessons for Vietnam to promote startup activities Third, the dissertation is the first study to analyze and evaluate the contents of activities promoting startup activities in Vietnam in a general and comprehensive manner in five contents promoting startup activities Fourth, the dissertation evaluated the influence of each factor on startup activities in Vietnam The dissertation structure In addition to the introduction, conclusion, list of references and appendices, the dissertation is structured in chapters Chapter LITERATURE REVIEW RELATED TO PROMOTING STARTUP ACTIVITIES 1.1 International research on promoting startup activities In international studies, there has also been much research that partly mentioned promoting national startups and mainly followed research directions, precisely the following research directions: Policies to promote startups; Support startup ideas; Building and linking organizations in the startup ecosystem; Support the development of startup businesses; Inspect and monitor startup activities 1.2 Domestic research on promoting startup activities Research on promoting startups in Vietnam to date mainly focuses on studies in specific cases and is not comprehensive with a macro perspective mainly following research directions; precisely research directions are as follows: Policies to promote startups, support startup ideas, building and linking organizations in the startup ecosystem, support the development of startup businesses, inspect and monitor startup activities 1.3 Research on factors affecting startup activities 1.4 Research gaps 1.4.1 General evaluation of the results of the prior research From an overview of the previous research on promoting national startups, the author has summarized some contents as follows: Firstly, international research mainly focuses on startup activities, some contents of promoting startup activities, and factors affecting the promotion of startup activities Second, in current research in Vietnam, the concept of a startup is mentioned in a form inherited (mainly translated) from related foreign documents, but there is no consensus on the content or usage Third, the analysis, synthesis and evaluation of advantages and limitations in policies to promote startup activities in Vietnam have initially been approached by some researchers Still, it has not been carried out systematically and methodically Fourth, domestic research has initially contributed to solutions for startup activities in general and promoting innovative startups in particular 1.4.2 Research gaps for studying First, building content to promote startup activities needs to come from fundamental theories about promoting startup activities Second, most of the research is conducted in developed countries, where startup activities have been encouraged for a long time and adjusted to suit the current situation Third, previous studies have only focused on studying some contents of policies and management organizations promoting national startup activities without a transparent system, especially from a macro perspective, in terms of policy and management organization Fourth, the dissertation uses exploratory factor analysis (EFA) and multivariate regression models to analyze factors affecting startup activities in Vietnam The above research gap is the basis for the author to carry out the dissertation topic through systematizing the theoretical and practical basis of policy and management organization to promote startup activities, Analyzing the current situation of promoting startup activities in Vietnam, determining the factors and their level of influence on startup activities in Vietnam based on surveys and assessments from startups, managers, organizations, This is the basis for proposing solutions to improve policies and management organizations to promote startup activities in Vietnam in the coming time Chapter THEORETICAL AND PRACTICAL BASIS OF PROMOTING STARTUP ACTIVITIES 2.1 Theory on promoting startup activities 2.1.1 Related concepts 2.1.1.1 Startup definition Startup is finding and seizing investment and business opportunities and mobilizing personal resources to realize business ideas through one's activities 2.1.1.2 Startup intention Startup intention is the first step in discovering, creating, and exploiting opportunities to start a business and establish a new one The startup intention can be understood here as an individual who has a specific awareness about business opportunities and is ready to take action to realize that intention in the future 2.1.1.3 Startup Enterprises According to the author's point of view and the research scope of the dissertation, Startup Enterprises is an enterprise that has been operating for less than five years and has not been listed on the stock market It is established to implement business ideas based on seizing business opportunities 2.1.1.4 Concept of startup ecosystem The startup ecosystem has a large concentration of individuals with an entrepreneurial spirit, companies or businesses and other stakeholders (playing a supporting role) , and has organic relationships, coexistence and sustainable development The strength of the startup ecosystem depends on the close "cohesion" of the components within the startup ecosystem The startup ecosystem is a vital resource and factor that promotes startup activities 2.1.1.5 The concept of promoting entrepreneurial activities According to the author, from the economic management perspective, promoting national startup activities is the activities of a country's state agencies to stimulate and create conditions and motivation for business activities Startup activities take place smoothly, including creating a legal environment, encouraging the birth of startup ideas, realizing startup ideas, as well as helping startup businesses overcome capital difficulties, administrative procedures, experience, human resources, technology, etc 2.1.2 Theories, characteristics and roles that promote startup activities 2.1.2.1 Grounded theories: a, Richard Catillon's startup economy theory; b, Social theory of entrepreneurship; c, Resource-based entrepreneurship theory; d, Schumpeter's theory of innovative entrepreneurship; e, Goal setting theory of motivation 2.1.2.2 Characteristics of startup promotion activities Startup promotion activities have potential risks, and reality shows that not all startups are successful Therefore, before starting a business, firms must ensure they have grasped all the characteristics of entrepreneurship: Creating a breakthrough, potential for rapid economic growth, and policies to support private enterprises associated with technology research and development 2.1.2.3 Role in promoting startup activities: Contribute to economic growth; Create diversity in the market; Increase the speed of applying new technology in production; Contribute to good use of intellectual capital and human capacity; Nurture revenue sources, creating opportunities for breakthrough economic development in the future 2.2 Content promotes startup activities 2.2.1 Develop and promulgate policies to promote startup activities 2.2.2 Support the development of startup ideas 2.2.3 Building and linking organizations in the startup ecosystem 2.2.4 Support the development of startups 2.2.5 Inspection and supervision of support for startup activities 2.3 Factors affecting startup activities: Human capital; Local culture and business; Access to finance; Relationships between organizations in the startup ecosystem; Business environment 2.4 Experience in promoting startup activities in other countries 2.4.1 International experience in promoting startup activities: from India, Israel, Singapore, Sweden 2.4.2 Lessons learned on promoting startup activities in Vietnam Vietnam can selectively absorb experiences from prosperous startup countries, including: Firstly, focus on building and perfecting the startup ecosystem Second, promote the active role of the private economic sector Third, apply policies to support legal, administrative and tax procedures for activities related to startups Fourth, activate policies to connect components in the startup ecosystem to create a close network to develop startup activities Chapter METHODOLOGY 3.1 Research questions The dissertation develops research questions and performs analyzes to answer the following questions: How theoretical foundations and practical experiences in some countries promote startup activities? What lessons can be learned for promoting startup activities in Vietnam? What is the current status of promoting startup activities in Vietnam? What factors affect startup activities in Vietnam? What is the level of influence of each factor? To promote startup activities in Vietnam, what solutions must be implemented in the coming years? 3.2 Research approach 3.2.1 Approach to inheriting existing studies 3.2.2 Systems approach 3.2.3 Participatory approach 3.3 Analytical framework and research hypotheses on promoting startup activities in Vietnam 3.3.1 Analytical framework for promoting startup activities in Vietnam ELEMENT AFFECT - Human capital - Local culture and corporate culture - Access to finance - Relationships between organizations in the starup ecosystem - Business environment Current status of promoting startup activities in Vietnam - Develop and promulgate policies to promote economic activities - Support the development of startup ideas Building and linking organizations in the startup ecosystem - Supporting the development of start-up businesses in Vietnam - Inspection and testing activities to support start-up activities Government perspective Solutions Goals of startup activities Figure 3.1 Analytical framework diagram for promoting startup activities in Vietnam (Source: own collaboration) 3.3.2 Hypotheses H1: Human capital has a positive influence on startup activities in Vietnam H2: Local and business cultures have a positive influence on startup activities in Vietnam H3: Access to finance has a positive influence on startup activities in Vietnam H4: The relationship between organizations in the startup ecosystem has a positive influence on startup activities in Vietnam H5: The business environment has a positive influence on startup activities in Vietnam 3.4 Research process The research process on promoting startup activities in Vietnam is carried out through the following steps: Step Research objectives Bước Literature Review Step Nghiên cứu định tính xây dựng thang đo Step Analyzing the current situation of promoting startup activities in Vietnam Adjusting the scale, questionnaire Step Step Cronbach’s Alpha; EFA multivariate regression Step Solutions to promote startups in Vietnam Figure 3.2 Research Process Diagram (Source: own collaboration) 3.5 Qualitative research Synthesizing theories on promoting startup activities and factors 10 The quantitative results and comments of several startup experts and managers have shown the outstanding efforts of the Vietnamese Government in building a system of policies and creating a favorable environment for forming ideas and startup projects Based on the synthesis of the above policy analysis, the research results shown in Tables 4.2 and 4.3 show the assessment of State management officials to improve the Government's policies further, thereby helping to enhance the efficiency of startup activities and increase output efficiency for startups in Vietnam 4.3.2 Support the development of startup ideas In the past period, the government has coordinated with ministries, departments and branches to carry out propaganda and education for those with startup ideas, especially young people and women, including youth union members, university students and after graduation, the Women's Union, for recognizing the role and importance of startup, innovation, creativity, and selfemployment; local, national and world startup education programs; government startup support policies; incubators, startup spaces, startup support funds at home and abroad through educational activities; video clips, images, publications; through documents and media, 4.3.3 Building and linking organizations in the startup ecosystem Project 844/QD-TTg approved the Project "Supporting the national innovation startup ecosystem until 2025" to support the development of 2,000 innovative startup projects; Support the development of 600 innovative startups and 100 businesses participating in the project to call for investment capital from venture capitalists, carry out mergers and acquisitions, with a total estimated value of about 2,000 billion VND The startup ecosystem in Vietnam has received investment attention from many localities but is still in the formation and creation stage Data related to Vietnam's startup ecosystem are mentioned in many documents The common point is that the actors in the startup ecosystem are still relatively modest According to the author's point of view, the components in the startup ecosystem include government management agencies, startup businesses, universities & research institutes and intermediate organizations Specifically as follows: State management agencies, startup enterprises, Universities, research institutes, and Intermediary organizations 4.3.4 Supporting the development of startup firms in Vietnam 4.3.4.1 Size and growth rate of operating businesses According to data from the national database on business registration (Ministry of Planning and Investment), by the end of 2021, the country had 857,551 operating businesses, an increase of 5.7% compared to last year 2020, an increase of 16.7% compared to the average period of 2017 - 2020 The specific results in Figure 4.4 show that In terms of economic regions, we see that the number of businesses operating in the service sector in 2021 accounts for the highest proportion with 67.1%, while the agriculture and forestry sector, Fishery accounts for the lowest proportion 11 with 1.4% and the industry - construction sector remains stable with 31.5% Regarding economic regions, we see that the highest number of operating businesses is still in two large areas of the country: the Southeast with 41.2% and the Red River Delta with 31.5% The economic region with the lowest number of active businesses at 2.8% is the Central Highlands region In terms of local scale: Some localities have a high number of operating businesses in 2021, including Ho Chi Minh City has 268,465 businesses, accounting for 31.3% of the country's operating companies, an increase 5.4% compared to 2020, Hanoi has 178,493 businesses, accounting for 20.8%, an increase of 7.6%; Binh Duong has 37,668 enterprises, accounting for 4.4%, a rise of 8.1%; Dong Nai has 25,055 enterprises, accounting for 2.9%, an increase of 3.2%; Da Nang has 24,703 businesses, accounting for 2.9%, a rise of 4.4%; Hai Phong has 19,806 companies, accounting for 2.3%, down 1.9% compared to 2020 4.3.4.2 Newly established businesses in the period 2017 - 2021 Judging by the system of documents of Project 844, we see that private enterprises have a close relationship with newly established enterprises because the subjects specified in Decision No 884 are private enterprises with an operating registration period of no more than five years from the date of issuance of the first business registration certificate Figure 4.5 shows that, in the total number of newly established enterprises in 2021, the whole country has 116,839 newly established enterprises, a decrease of 13.4% in the number of enterprises compared to 2020, a reduction of 8.9% compared to the average of the period between 2016 and 2020 The reason is that from the end of 2019 until now, COVID-19 has affected the economy of the whole world, leading to the majority of businesses facing difficulties in production and business activities In addition, operating businesses are mainly small and medium-sized enterprises belonging to private economic sectors This means that organizations supporting startups and private enterprises are still limited 4.3.4.3 The business returns to operations in the period 2017 - 2021 By economic sector: There are 31,199 businesses in the service sector returning to operation, an increase of 1.7% compared to 2020; There are 11,381 industrial and construction enterprises, down 9.9% and 536 agriculture, forestry and fishery enterprises, down 31.0% Compared to the average period of 2016-2020, businesses returning to operate in the service sector increased by 33.6%; The industrial and construction sector increased by 12.9%; The agriculture, forestry and fisheries sector decreased by 22.9% By economic region: The Southeast and the Red River Delta always account for the highest rate, with 36.7% and 34.1% of the number of businesses returning to operation, while the lowest rate belongs to the Tay Nguyen and Mekong Delta, with 2.6% and 5.6%, respectively 4.3.4.4 Net revenue of operating businesses Total net revenue of all operating enterprises with production and business results in 2021 reached 27.4 million billion VND, an increase of 4.0% compared to 2020 Specific results in Figure 4.9 show: 12 By economic sector: Net revenue of enterprises in the agricultural, forestry and fishery sector in 2021 reached 158.1 trillion VND, accounting for only 0.6% of net income of the entire enterprise sector, down 2% compared to 2020; Enterprises in the industrial and construction sector reached 13.7 million billion VND, accounting for 50.1%, an increase of 4.4%; Service sector enterprises reached 13.5 million billion VND, accounting for 49.3%, an increase of 3.7% By type of enterprise: Non-state enterprises in 2021 have the highest total net revenue of 15.8 million billion VND, accounting for 57.6% of the net income of the entire enterprise, an increase of 4.3% over the year 2020; FDI enterprises reached 8.2 million billion VND, accounting for 29.8%, an increase of 7.1%; State-owned enterprises reached 3.4 million billion VND, accounting for 12.6%, down 4% 4.3.4.5 Pre-tax profits of operating enterprises In 2021, the total pre-tax profit of businesses will reach 954 trillion VND, an increase of 7.2% compared to 2020 The proportion of profitable companies in 2021 went 39.7%, down compared to 2020 (43.0%), and the number of profitable enterprises decreased by 5.5% compared to 2020 The rate of loss-making enterprises in 2021 reached 41.5%, down compared to 2020 (48.8%) The number of loss-making businesses decreased by 13.1% compared to 2020 4.3.4.6 Support capital sources for startup business operations In 2021, investment capital in startup enterprises in Vietnam reached 1,353 million USD, a remarkable growth compared to previous years, with the number of investment deals being 165, an increase of 57% compared to 2020 Revenue areas Large capital attractions are financial technology, games, education, healthcare, e-commerce, In the creative startup ecosystem, there has been the active participation of many organizations capable of supporting startups, incubators, universities and colleges organizing startup activities In addition, large businesses also participate in startup support activities as financial investors for startups, helping startups expand their markets and share experiences and professional advice The results in Figure 4.12 show that the total capital used for production and business of all operating enterprises with production results in 2021 reached 48.7 million billion VND, an increase of 12.2% compared to the same period in 2020 If considering the business cycle for startup businesses, the life cycle theory is a model that is widely applied today to study the factors that determine the capital structure of startup businesses (Berger & Udell, 1998) The central idea of this theory is that financial needs and access to capital change as companies grow, gain more experience, and become more transparent in business Newly established startups must rely heavily on internal funding sources, trade credit and capital from angel investors (Angel Investors Tax Deduction Scheme) As businesses grow, venture capital funds and financial intermediaries 13 can access funding more easily Even if it continues to grow more vital, businesses can raise capital from the public through an initial public offering (IPO) According to the approach of Söderblom & Samuelsson (2014), funding sources for the operations of private enterprises are divided into two groups: (1) Internal capital sources, including own capital, capital from family and friends; (2) External capital comes from angel investors, venture capital funds, financial intermediaries or other supporting entities, etc At the same time, the results in Table 4.6 show that startup businesses in the incubation stage receive support from business incubators through the majority of managers in startup businesses saying that business incubators support them mainly in their work, such as knowledge and skills training with 287 business enterprise officials agreeing (accounting for 74.4%), consulting activities to attract investment and financial support with 185 people agreeing (accounting for 47.9%) and help test new products, technological processes, business models, etc., with 181 people arranging, accounting for 46.9% Table 4.7 shows that businesses are in the venture capital stage, mainly in the stage of calling for round B capital, with 32.9% This step is the prerequisite to expanding the market The remaining businesses are primarily businesses still in the stage of calling for round A capital This step is the step of developing a business model for the market Thus, it can be seen that the surveyed businesses all have the potential to shape ideas, business and expand markets 4.3.4.7 Support training, propaganda and coaching for startup businesses The results in Table 4.8 show that propaganda and training activities on startup support were carried out in the period 2019 - 2021 in Vietnam Accordingly, recently, Vietnam has organized 3,426 reports to propagate innovative startup activities to raise awareness and update knowledge and policies on innovative startups through many forms: dissemination on the websites of agencies, units, and publications of Science and Technology Information; interwoven training classes with 1,257 classes over the years for 112,815 people through conferences, seminars, and forums; develop columns and television reports on innovative startup activities, typical projects and models of successful innovative startups and propagate on Radio and Television; providing information about technology, inventions, standards, measurement, quality, and intellectual property for organizations and individuals serving startup activities Through table 4.10, we have: regarding the proposal of support policies for human resource training, the management staff of private enterprises also expressed the opinion that the first and foremost thing to for Vietnam is to discover and incubate innovative ideas with 71% of staff choosing and raising awareness of the whole society, especially for students/researchers about entrepreneurship with 66.3% of staff choosing Establishing offices or innovation centres in universities and colleges receives less support because some large universities have done this but have not shown much superiority nor promoted the effectiveness of centres at universities 4.3.5 Inspection and supervision of support for startup activities In recent years, startup support in Vietnam has been going strong Startup support activities are considered core to socio-economic 14 development To develop the startup movement in a sustainab le, transparent, fair and objective manner, the government has always focused on examining the activities of startup businesses and supporting startup activities In addition, on the local side, the People's Council and Provincial People's Committee have coordinated with relevant departments, branches and agencies to direct, review, urge and carry out periodic and unexpected inspections and checks 4.4 Current status of factors affecting startup activities in Vietnam 4.4.1 General information about the research object Table 4.11 briefly describes the characteristics of the research sample of business enterprise managers Thereby, we see that the proportion of male managers interviewed is 225 (accounting for 58.3%) and female managers are 161 (accounting for 41.7%) With most businesses being formed less than five years ago, they are in the incubation stage at 39.6% and venture capital at 49.7% after the incubation stage A small number of them reach the adult stage, with 10.7% The difficulties and obstacles currently encountered by private enterprises include difficulty accessing experts and consulting organizations to attract investment and financial support and meeting the criteria to receive approval for testing new products, technological processes, and business models There are few opportunities to join networking organizations and difficulties supporting production and business premises 4.4.2 Descriptive statistics of factors affecting startup activities in Vietnam 4.4.2.1 Human capital The survey results of managers shown in Table 4.16 show that respondents rated the human capital factor as performing at a reasonable level, with an overall average value ranging from 3.91 to 4.03 In particular, managers rated the lowest level of agreement with the views "Managers and employees of the enterprise have enough skills and qualifications to meet job requirements" and "Managers and the enterprise's employees, after being sent for training, work more effectively." This shows that although the qualifications of workers recruited to businesses next year are consistently higher than the previous year, they still lack skills and abilities suitable for specific jobs in private enterprises In addition, short- and long-term training programs for workers have received real attention from business enterprises, but the results show that the effectiveness is not commensurate with expectations 4.4.2.2 Local culture and business Evaluation results of managers with cultural factors The opinions are evaluated through the Likert scale with an average value ranging from 3.46 to 3.54, reaching a low level of agreement Among them, the viewpoint receiving the lowest rating is that startup enterprises managers of different genders will run the business with varying levels of efficiency, and the highest is that the spirit and will of managers affect the firm's work efficiency and the ability to start a successful business This partly shows that gender does not significantly affect the working efficiency of startup enterprises, in 15 which spirit and determination need to be mentioned 4.4.2.3 Financial accessibility Table 4.17 shows a high appreciation of the influence of financial capital factors on promoting startups in Vietnam The survey results on this factor have an overall average value ranging from 3.25 to 3.90, reaching a good level If the managers think that the views " startup enterprises receive many credit incentives from different financial sources" and "Enterprises can access many financial sources from outside" achieve 𝑋̅ = 3.25, at the lowest level, the opinion "Accessing external financial resources is the optimal solution for business activities of startup enterprises " reached the highest average value, showing the most significant level of agreement 4.4.2.4 Connecting components in the startup ecosystem Evaluation of social factors shows that most startup enterprises managers agree with GTTB, which they evaluate, ranging from 3.39 to 3.99 points In particular, the view with the lowest agreement belongs to the startup enterprises participating in incubators and shared working areas The idea that receives the highest deal belongs to the startup enterprises, which has connected with state agencies that manage startup activities 4.4.2.5 Business environment The Business Environment has averages ranging from 3.25 - 3.34, reaching a moderate level 4.4.2.6 Startup activities Regarding the startup activities, we see that the overall average value ranges from 3.63 to 3.72, reaching the level of agreement Between opinions, there is not too much difference in the assessment of startup enterprises managers The view that receives the highest deal is that more and more startup enterprises with improved and innovative products are being established The lowest is that the relationship of startup enterprises in the startup ecosystem is increasingly improving This shows that with the size and growth rate of startup enterprises, the startup ecosystem, government policies or co-working areas, business incubators also need to improve to adapt to this growth in the coming time 4.4.3 Reliability results The results of testing the scale show that most observed variables have Cronbach's Alpha coefficient within the range of 0.6 to 0.9 However, there are two observed variables, financial and social capital, with an Item-total correlation coefficient 1, and the total variance 16 explained from 66.335 to 80.978 is > 50% Thus, through the reliability test and EFA, the scales of the research concepts all met the requirements Factors continue to be included in correlation analysis, and research hypotheses are tested using regression models Through correlation testing, we have all P-values equal to 0.000, less than 5%; there is a cultural variable with sig>5% This is the basis for eliminating this variable due to multicollinearity , and the remaining variables have qualifying values to run the regression Considering the dependent factors and independent variables, we get the same results as above, all with p-values less than 5% However, the author continues to run the following multivariate regression with all five variables so that from the regression model results, some conclusions can be drawn about all variables included in the model 4.4.5 Multivariate regression analysis The study conducted a multivariate regression analysis to identify factors affecting startup activities in Vietnam, including variables such as business environment, human capital, financial accessibility, relationships between components in the startup ecosystem, local culture and businesses By running the model and performing testing, the following results are obtained: Table 4.25 Multivariate regression results Unstandardized Standardized Collinearity Coefficients Coefficients Statistics t Sig Std B Beta Tolerance VIF Error (Constant) -0,536 0,217 -2,471 0,014 GO 0,574 0,036 0,557 16,082 0,000 0,787 1,270 HM 0,137 0,036 0,120 3,763 0,000 0,933 1,072 CT 0,087 0,038 0,072 2,295 0,022 0,965 1,036 CO 0,087 0,036 0,079 2,400 0,017 0,875 1,143 FI 0,256 0,028 0,302 9,118 0,000 0,862 1,160 a Dependent Variable: SU Model (Source: Analysis result) When considering each factor's variance inflation factor (VIF), the value from 1.036 to 1.270 is less than 10, proving that the model does not have a multicollinearity phenomenon The independent variables are closely correlated with each other Thus, the model makes sense for analysis According to the multivariate regression results table, we determine the following multivariate regression equation: SU = -0,536 + 0,574*GO + 0,137*HM + 0,087 * CT + 0,087 * CO + 0,256* FI From there, we can deduce the following regression equation: Startup activities = -0.536 + 0.574* Business environment + 0.137* Human capital + 0.087 * Local culture and businesses + 0.087 * Relationship between components in the startup ecosystem + 0.256* Financial accessibility 4.5 Overall assessment of promoting startup activities in Vietnam 17 4.5.1 Achieved aspects in promoting startup activities in Vietnam The government has issued documents with the intention of assisting startup ecosystem as the foundation for supporting local startup activities Activities to support the startup ecosystem regularly receive attention and close coordination from all levels and sectors from central to local levels Numerous innovative startup events, whose quality is increasingly upgraded, are organized Activities assisting startups are spreading across the nation, turning a majority of startup ideas into successful business model The quantity as well as the scale of newly-established companies undergoes a rapid growth, providing more job opportunities Over the years, there has been a gradual improvement in the qualifications of both workers and managers within private enterprises in Vietnam, evidenced by a rising proportion of individuals holding university degrees and a declining percentage of individuals with college and intermediate-level qualifications The first steps of commercializing startup products have been recognized Many products have been granted geographical indications, trademark protection to build brands with consumers nationally and worldwide The government has introduced several new regulations aimed at facilitating the inspection and examination processes of private enterprises The objective is to conduct inspections that are limited in scope but highly effective, minimizing any inconvenience or disruption experienced by private enterprises Additionally, these measures aim to generate additional revenue by recovering misused funds, which can be allocated towards supporting startup ideas and projects in a more comprehensive manner 4.5.2 The existing issues with promoting startup activities in Vietnam Although the Government has developed and implemented many support policies for business enterprises, there is currently no specific policy for each type of business enterprise, and the current support policies for business enterprises are still unclear, clear and specific Activities to connect, deploy and transfer technology between business enterprises, research institutes and universities; Application support and technology transfer are still not highly effective Although policies on financial support, access to credit, and premises exist, they are general regulations and not specific In recent years, local governments have had special support policies for small businesses The common limitation to the development of start-up enterprises is finance due to limitations in mechanisms and policies related to capital mobilization Although there are many different financial channels, in reality, small businesses still have difficulty accessing capital Human capital is lacking and weak because the connection between universities and research institutes in Vietnam with provincial governments