Xây dựng và phát triển quỹ đầu tư mạo hiểm ở việt nam tt tiếng anh

STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRANING BANKING ACADEMY OF VIETNAM - PHAM TIEN MANH BUILDING AND DEVELOPING VENTURE CAPITAL FUNDS IN VIETNAM Major : Finance – Banking Code number : 9.34.02.01 SUMMARY OF PHD THESIS HANOI, 2019 STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRANING BANKING ACADEMY OF VIETNAM - PHAM TIEN MANH BUILDING AND DEVELOPING VENTURE CAPITAL FUNDS IN VIETNAM Major : Finance – Banking Code number : 9.34.02.01 SUMMARY OF PHD THESIS Supervisors: Assoc Prof Dr NGUYEN THANH PHUONG Dr DAO LE MINH The thesis was defended in front of the thesis committee at ……… on ………….2019 at the Banking Academy of Vietnam The thesis can be found at: -Library of the Banking Academy of Vietnam -National Library of Vietnam HANOI, 2019 INTRODUCTION THE NECESSITY OF THE THESIS Since the renovation in 1986, the Vietnam economy has gained remarkable achievements; Vietnam is always in the top of countries with the highest economic growth rate in the world, the rate of poor households decreases, the life quality of people is constantly increasing However, the renovation of the economy, building and development of the country is a continuous process, requiring combinations of a number of factors to create a sustainable and highly competitive growth rate Experiences from developed countries with high science and technology development level such as the US, Europe, Korea, China, Israel, etc show that, venture capital investment plays a key role in the process of technological innovation, modernization of the country, improving the development of domestic enterprises, towards global competitiveness; in which, venture capital funds play an intermediary role in transferring capital from individuals and organizations with capital, willing to accept investment in promising venture projects, with the aim of achieving high profitability in the future In addition, experiences in countries such as China and South Korea show that, their governments soon realized the important role of venture capital in general and venture capital funds in particular, invest in and promote this sector to create a driving force for sustainable economic development Specifically, in the early stages of establishment and development of venture capital funds, these nations had focused on the process of reforming mechanisms and policies, as well as focusing on developing the primary stock market and secondary market, creating favorable conditions to promote venture capital funds to develop and expand investment scale In addition, other factors such as creating resources for venture capital funds to raise capital, orienting investment areas of venture capital funds, creating networks to connect the domestic and foreign venture capital community have been promoting a good role in the development of venture capital funds in these countries In Vietnam, venture capital is still considered a relatively new investment sector, which has been interested by the government in terms of policies to encourage development since 2015, through circulars, decisions, decrees or laws have been enacted to promote the process of supporting businesses, encourage the creation of venture capital funds for innovative startups, or promote economic sectors to engage in venture capital, etc, to take advantage of the country’s internal resources in the economy development In fact, most of venture capital funds in Vietnam are foreign venture capital funds, starting investments in venture capital market in Vietnam since 1991; until 2015, new venture capital funds which were established by Vietnamese beginning in the investment operation So far, the number of venture capital funds operating in Vietnam are still small, the amount of investment capital and investment sector is limited; therefore, it has not played prominent role in promoting the start-up projects, creation and improvement Vietnam economy Therefore, the establisment and development of venture capital funds in Vietnam in the future still have many problems and angles to discuss; in order to create favorable conditions for the field of venture capital in general, and venture capital funds in particular, to be developed sustainably, to create conditions for promoting the scientific and technological level of Vietnam as well the development of Vietnam economy Therefore, the author has chosen the topic "Building and developing venture capital funds in Vietnam" for his doctoral thesis RESEARCH PURPOSES AND RESEARCH QUESTIONS Objectives of the study The thesis has the main research purposes, which are: Systemize the theoretical basis for the building and developing of venture capital fund, in which it delves into the environment necessary for the operation of the venture capital fund; criteria to assess the development of a venture capital fund in the process of its operation Analyze the current situation the development of venture capital funds in Vietnam, including foreign and Vietnamese venture capital funds After that, the thesis is going to assess the development of all venture capital funds operating in Vietnam, analyzing the advantages, shortcomings, limitations and causes In addition, the thesis is going to develop an econometric model to assess the factors affecting the building and developing venture capital funds in Vietnam in the current period, thereby serving as a basis for developing incentive solutions encourage the establishment and support of the development of Vietnam's venture capital funds in the future Last but not least, the thesis will propose solutions to promote the establishment and development of venture capital funds in Vietnam, including legal framework, building the necessary specific mechanisms, proposing a organizational and operational model, state management issues, and propose necessary roadmaps to support the building and developing venture capital funds in Vietnam Research question Firstly, what is the current status of building and developing of venture capital funds in Vietnam? Secondly: What factors are needed for building and developing venture capital fund in Vietnam currently? Thirdly: What policies are needed to accelerate the process of building and developing venture capital funds in Vietnam in the future? RESEARCH OBJECT AND SCOPE OF STUDY 3.1 Research object The main object of the thesis is to build and develop venture capital funds 3.2 Scope of study Scope of space: Foreign and Vietnamese venture capital which are in operating in Vietnam Scope of time: Venture capital funds are in operating in Vietnam, from 1990 to 2018 Limitations of research: Because it is difficult to collect data from venture capital funds operating in Vietnam because of small and newly established venture capital funds not publish data on the investment process As a result, This thesis focuses on the four largest venture capital funds operating in Vietnam, including VinaCapital, Mekong Capital, IDG Venture and Dragon Capital In addition, the thesis also uses available data published in the social media of Vietnamese venture capital funds (from 2015 until recently) METHODOLOGY AND RESEARCH METHODS In order to achieve the research objectives, the thesis has used the methodology of dialectical materialism and historical materialism, and at the same time combined with scientific abstraction, qualitative and qualitative research methods to achieve comprehensive, systematic research objectives In addition, the main technical methods which used in the thesis include statistical methods, comparisons, assessments, systematic analysis methods and some other methods Specifically: For primary data, the thesis uses in-depth interview method and survey method through questions related to the thesis For in-depth interviews, the thesis selects experts who are working at the State Securities Commission (mainly official working at the Fund Management Department), experts working at investment funds which having representative office/main office in Hanoi From in-depth interviews of these experts, combined with previous studies of domestic and foreign authors on venture capital funds, the thesis has drawn a number of key factors that affect the building and developing venture capital funds Since then, the questionnaire has been formed to serve the survey For the survey, it is designed in two forms: (1) online form through the use of Google Docs; (2) Paper questionnaire printed on A4 size paper; This questionnaire is then sent to those who have experience in the field of investment in general, and venture capital in particular, in the form of email, it was sent directly or by post; for online questionnaires, the results are automatically updated on the online results; For the questionnaire sent directly or by post, the respondent will take a picture of the results, send it via social media applications (Messenger, Zalo, Viber, email), or send directly to the person asked The content of survey questionnaire includes main parts: (1) Personal information; (2) Assess the knowledge levels and views of venture capital in Vietnam; (3) Factors affecting the building and developing venture capital funds in Vietnam; (4) Suggestions for building and developing venture capital funds in Vietnam in the future For secondary data, the thesis uses investment data from venture capital funds that have been invested activities in Vietnam for a long time, with data which are collected from the websites of those investment funds After that, thesis use statistical and comparative methods to find out the development trend of venture capital funds operating in Vietnam With macroeconomics data, the thesis uses data from the official websites of the State Securities Commission, General Statistics Office, Ministry of Education and Training, Ministry of Justice, General Office and Family Planning, Ministry of Finance, etc For the solutions to build and develop venture capital funds in Vietnam, the thesis uses scientific abstraction method, in order to combine the orientation of developing venture capital funds in Vietnam by The Government, with the current situation in Vietnam, aiming to offer some suggestions for building and developing venture capital funds in Vietnam NEW CONTRIBUTIONS OF THE THESIS On theoretical side - The thesis has built a set of targets and systematized the factors affecting the establishment and development of venture capital funds in Vietnam On the practical side - The thesis has comprehensively assessed the necessary factors for the establishment and development of venture capital funds in Vietnam in recent years - The thesis has used econometric model to test the environmental factors that have the most impact on the building and developing venture capital funds in Vietnam - The thesis has combined research results from theory and practice, then proposed a systematic, synchronous and high-value solution system to encourage establishmeng and promote the development of venture capital funds in Vietnam under current conditions, such as the development of special mechanisms for the venture capital fund to operate; propose the organization and operation model of the venture capital fund in Vietnam; or based on the mechanisms, policies and directions of the government on venture capital, combined with the current situation of the development of venture capital funds in Vietnam today, proposing a roadmap for building and developing venture capital funds in Vietnam THEORETICAL AND PRACTICAL MEANINGS OF THE THESIS In the theoretical perspective, the thesis has systematized the theoretical basis of venture capital fund, the conditions for building and developing venture capital funds In the practical perspective, the thesis has conducted in the context of Vietnam government, the investment community have been focused on venture capital investment, start-up issues to create breakthroughs, develop science and technology, building entrepreneurship for generations of entrepreneurs in Vietnam Although the venture capital funds started investing in Vietnam from 1991, but until 2015, Vietnam government began to release documents and policies on to promote the venture capital in general, and venture capital funds in particular The thesis is a source of reference for policy making to accelerate the process of building and developing venture capital funds in Vietnam THE THESIS STRUCTURE In addition to the introduction, conclusion and list of references; The thesis content consists of 05 chapters: Chapter Research overview Chapter Theorical framework of building and developing venture capital funds Chapter The current status of building and developing venture capital funds in the world Chapter The current status of building and developing venture capital funds in Vietnam Chapter Solutions on building and developing venture capital funds in Vietnam CHAPTER RESEARCH OVERVIEW OVERVIEW OF FOREIGN RESEARCH 1.1 Capital supply for building and developing venture capital Previous studies on capital supply for venture capital funds show that: Firstly, the government plays an important role in the early stage of building and developing of venture capital funds The Government is the object of capital contribution to establish venture capital funds and market orientation in venture capital sector At the same time, it provides funding for promising venture capital projects which are facing difficulties in the next capital mobilization rounds Second, the participants in capital contributions to venture capital funds include angel investors and institutional investors For angel investors, they are wealthy individuals and families with business and investment knowledge; they are willing to accept a high level of risk in their investments in search of high-risk venture capital investments Institutional investors are insurance companies, pension funds, investment funds, investment banks, etc, with the advantage of investment experience and investment capital Institutional investors are the main source of investment capital for operating venture funds Third, in the early stages of venture capital projects, angel investors often play a major role in raising capital for such projects; while institutional investors often prefer to invest in later stages of the business life cycle Fourth, macroeconomics factors also affect capital mobilization of venture capital funds, such as short-term interest rates, long-term interest rates, GDP, etc Fifth, the performance of venture funds in the past has had an impact on subsequent venture capital mobilizations However, there is no linear relationship between past investment performance and money raised; newly established investment funds, or investment funds with low investment results, can still raise investment capital at subsequent capital mobilization campaigns 1.2 Policy factors affect the building and developing venture capital funds Policy factors affecting the building and developing of venture capital funds, including government policy elements, as well as from within the social investment community, which is accepted and supported by the government, or local governments to accelerate the establishment and development of venture capital funds Policy factors include: Firstly, entrepreneurship supportive network Second, educational policies to train investors Third, tax policy in venture capital 1.3 Internal factors influence building and developing venture capital funds Internal factors affecting the development of venture capital funds include: Firstly, the type of venture capital fund Second, the investment period Third, the terms and conditions in investment contracts OVERVIEW OF DOMESTIC RESEARCH Previous studies in Vietnam on the field of venture capital are still limited such as the previous research had been done a long time ago, therefore the data and economic context have changed a lot; the previous research focuses only on a number of areas of individual venture capital funds, there is no full research on venture capital funds in general; or previous studies on venture capital only study on a certain locality, not covering the whole market in Vietnam THE RESEARCH GAPS In sum up, previous studies have made great contributions in both theoretical and practical assessments of factors affecting the building and developing of venture capital funds; emphasizing the role of developing venture capital investment in the development of regional economies However, these studies still have certain research gaps, which are: Firstly, in the previous countries' studies on the establishment and development of venture capital funds, the lessons which are learned from other countries are still general, not in-depth and specific Therefore, the connection with Vietnam is limited Secondly, there are a number of studies on factors affecting venture capital funds, but there have not been any studies on the setting up of general criteria to assess the factors needed to build and promote the development of venture capital funds, not in depth analysis and follow this set of criteria when researching in each specific market Thirdly, studies on venture capital funds in Vietnam have not mentioned the investment trend of venture capital funds operating in Vietnam In addition, previous studies have been conducted for a long time, therefore, the figures are outdated, unable to update the operational situation of venture capital funds operating in Vietnam today Therefore, the research on building and developing of venture capital funds in Vietnam, in order to understand the current investment trend of venture capital funds operating in Vietnam, learning the lessons from previous countries, identifying and evaluating influencing factors, and solutions to accelerate the process of building and developing venture capital funds in Vietnam are essential 10 CHAPTER THEORICAL FRAMEWORK OF BUIDLING AND DEVELOPING VENTURE CAPITAL FUNDS 2.1 Concept of venture capital and venture capital 2.1.1 Venture capital theory Venture capital is the capital which was provided by wealthy individuals, or financial institutions for startup projects, small businesses with high potential for future growth; or other businesses that need capital to continue production and business Because of this capital investing in highly risk projects and businesses, so investors must be willing to accept the losing possibility of capital in their investment projects 2.1.2 Venture capital funds Venture capital fund is a type of investment fund that receives from venture capital investors to make investments in newly established companies, in companies with high potential for future growth, but with many potential risks Venture capital funds can invest in many sectors of the economy, but are primarily aimed at startup firms, high-tech companies 2.2 Theory of building and developing venture capital funds According to Avnimelech et al (2016), the process of building and developing of a venture capital fund consists of stages below: (1) Period of the necessary conditions for building a venture capital fund (2) Period of pre-appear venture capital fund (3 Development stage of venture capital funds (4) Crisis phase of venture capital funds (5) Recovery period of venture capital funds 2.2.1 Building venture capital funds When building a venture capital fund, the following factors need to be considered: (1) Venture capital investors; (2) Organizational model; (3) Limited 11 provisions in the fund's investment; (4) Standard for disbursement of investment projects; (5) Exit strategies 2.2.2 Developing venture capital To evaluate the criteria for building and developing venture capital funds, the thesis uses criteria, namely (1) the number of venture capital funds established over the years; (2) The total venture capital which was mobilized; (3) investment sector of venture capital funds; and (4) performance of venture capital funds 2.2.4 Factors affecting the building and developing venture capitals 2.2.4.1 Factors affecting the process of building and developing venture capitals In order to build and develop a venture capital fund, it is necessary to consider five essential factors below: (1) Government policies; (2) Cultural and social values; (3) Training and research capacity; (4) Location factors; (5) Venture capital resources 2.2.4.2 Method of assessing the influential factors on the process of building and developing venture capital funds In order to evaluate the establishment and development of a venture capital fund in Vietnam, in addition to the questions of understanding the venture capital fund, the thesis uses research variables related to the building and developing venture capital funds in Vietnam, which are: (1) CSCP: Government policies factors (2) VHXH: Social and cultural factors (3) ĐTNC: Training and research capacity factors (4) ĐĐ: Investment location factors (5) NL: Resource factors The thesis uses the Exploratory Factor Analysis (EFA) to evaluate the influencing factors to building and developing venture capital funds in Vietnam Research methodology includes the following steps: Step Use the Cronbach’s Alpha test to check the quality of the scale Step Analyze Principle-Component Factor 12 Step Find the rotation matrix Step Bartlett test and KMO test 13 CHAPTER THE CURRENT STATUS OF BUILDING AND DEVELOPING VENTURE CAPITAL FUNDS IN THE WORLD 3.1 The process of building and developing venture capital worldwide in the reality 3.1.1 The history of building and development venture capital 3.1.2 The development trend of venture capital fund over the world 3.2 The experiences of building and developing venture capital in China and Korea After studying the trend of developing venture capital funds in the world, and experiences in building and developing venture capital funds in China and Korea, the thesis draws some lessons from the following: (1) Government plays an essential role in the process of building and developing venture capital funds (2) Focus investment capital on sectors which requiring high scientific and technological qualifications (3) Take advantage of attracting venture capital from all sectors of society (4) It is necessary to build a connection network in venture capital (5) It is necessary to select the appropriate form of venture capital fund in each different development periods (6) Focus on developing the stock market 14 CHAPTER THE CURRENT STATUS OF BUILDING AND DEVELOPING VENTURE CAPITAL IN VIETNAM 4.1 Introduction about the environmental factors affecting venture capital activities in Vietnam 4.1.1 The government policies The government plays an essential role in creating an effective operating environment for venture capital Through guiding policies, the government can influence all aspects needed to develop an effective capital market in general and the activities of venture capital funds in particular Government policies are necessary for the operating environment of venture capital funds which can be mentioned as follows: policies in the field of education - training related to business and investment; government policies related to scientific and technological development; and government policies related to financial markets, in which the stock market plays a leading role 4.1.2 Social and cultural values for business In investments, social and cultural values are expressed in two main points: business culture of the country and the region; Perspectives on risks and failures (Lerner et al., 2015) 4.1.3 Scientific and technological research factors Scientific and technological research elements include: scientific research capacity (such as the number of research institutions, universities and colleges); regulations on scientific research of scientific staff; regulations, enforcement of intellectual property rights, etc 4.1.4 Investment location factors Investment locations factors includes (1) Local infrastructure and (2) Business associations 4.1.5 Venture capital resources The element of resources for venture capital includes two main issues: (1) the demand for venture capital: small and medium enterprises, human resources; (2) the 15 supply of venture capital: the number of companies, economic groups, and national resources; (3) the internal development of venture capital funds 4.2 The status of building and developing venture capital funds in Vietnam 4.2.1 The status of building venture capital funds in Vietnam 4.2.1.1 For foreign venture capital funds At the time of joining Vietnam market, all of these venture capital funds were established and raised capital abroad, in which the shares of these venture capital funds were listed in foreign stock market The investors participating in these venture capital funds is institutional investors, without the participation of individual investors At that time, venture capital funds had a wide range of activities, from manufacturing, trading, services, finance, and so on, without the necessary objective of investing in companies in the field of high technology, startups, etc For the venture capital fund structure, foreign venture capital funds established in Vietnam in the early stages often choose the open-end fund structure, with the characteristics of capital mobilized once from the beginning The Fund is not responsible for payment to investors during the operation of the Fund, but investors must sell to other investors in the stock market, etc this will create stability in capital raised by venture capital funds, in order to focus on the implementation of selected venture capital projects 4.2.1.2 Vietnamese venture capital funds In Vietnam, venture capital funds have been officially established since 2015, with the main goal of investing in innovative startups These investment funds mainly mobilize capital from the state budget, related ministries and branches, or from companies, groups, etc., while the investment capital from angel investors is limited Venture capital funds have been operated under the supervision, management of the company, parental corporation, or run by the governing bodies of the government, orienting development directions; with the main objective of responding to the Government Decision 884/QĐ-TTg on approving the Government's Project "Supporting national innovation start-up ecosystem to 2025"; therefore, the organizational model is mainly headed by government, holding companies, the 16 parental corporation, or the legal representative of these venture capital funds; in which experts participate mainly in the role of advising and supervising the projects that the fund invests in, without putting a preference role in raising capital of these venture capital funds When it was established, Vietnam's venture capital funds aimed to invest in startups, science and technology firms, natural sciences, etc with the goals which were learnt from start-up countries such as the US, China, South Korea, Israel, Singapore, etc to promote the country's science and technology, create momentum for sustainable development of the economy, and to enhance competitiveness capacity globally of Vietnamese enterprises and technology products 4.2.2 The current status of Vietnamese venture capital development To evaluate the criteria for developing venture capital funds, the thesis uses criteria, which are (1) the number of established venture capital funds over the years; (2) total mobilized venture capital through the years; (3) investment sectors of venture capital funds; and (4) performance of venture capital funds 4.3 Survey results of factors affecting the building and developing venture capital funds in Vietnam Based on the analysis results of convergent and discriminant values, there are factors were extracted, corresponding to 23 observed variables; all load coefficients of observed variables are > 0.5; all the observed variables measured for the factors CSCP, VHXH, ĐTNC, ĐĐ, NL have high load coefficients on the same factor, this means all the variables have good convergence values; and there is no significant difference in the load coefficient of an observed variable on other concepts, this means the observed variables have a good discriminant value KMO test results show that, KMO coefficient = 0.735 (> 0.7) should the research model achieve completeness At the same time, Bartlett test results show that Sig = 0.000 (