Young people find it difficult for startup in Vietnam

Many university graduates start up their business

“The lack of experience and impractical business ideas are the major reasons causing many startup projects to fail,” said Tran Le Tram Anh, an economics student from Hanoi National University.

Anh and her team attended a competition on startup ideas launched by the Vietnamese Students Association in early 2017. Their idea helps students find extra jobs, and allows app users to negotiate salaries and assess workers’ capabilities, thus creating a competitive and dynamic working environment.

The idea won third prize at the UEB Genesis Startup Program 2016.

According to Anh, in most cases, students’ business plans are “cumbersome, requiring complex operations”. She said the members of the jury only gave advice to simplify the idea for easier implementation.

Anh’s business idea improved after the competition, especially in terms of calling for capital. However, the team doesn’t intend to implement the plan because of a lack of resources.

In order to start up a business, she said, it is necessary to find experienced cooperators.

“After the government launched the startup movement, a lot of programs to support entrepreneurs were set up. However, the majority of students cannot access the programs,” Anh said.

Half a year after the competition for startup ideas, Khuat Hoang Lam, a fourth-year student at the Hanoi University of Science & Technology, has abandoned his project on providing designs for gardens for families, even though it was listed among the top 20 in the competition organized by Leipzig University, the Hanoi University of Science & Technology and the Vietnam Chamber of Commerce and Industry (VCCI).

“This is just for competition, and I still don’t have a plan to implement it,” he said.

Nguyen Van Khuong, who graduated from Architecture University, and his friends are meeting difficulties designing housing models adapted to climate change. The idea was praised at the Holcim Prize 2015-2016, but it still cannot be applied in real life.

Unlike Anh and Lam, Khuong is still pursuing his idea.

“I have updated the idea, applying German technology and using more durable materials,” Khuong said.

Khuong has had problems raising funds because his project is large scale. He complained that support programs for startups require too many procedures.