Businesses, in their early stages of development, will require big amounts of capital.



Deputy Prime Minister Vuong Dinh Hue said at the event that he wanted to see a stock market for startups to begin operating in two or three years to help startups mobilize capital.



While appreciating the government’s effort to encourage the startup community, businesses still appear to be uncertain about a stock market designed for them.



Do Hoai Nam, the founder of Up Co-working Space, who once succeeded with Emoti System, thinks it was unfeasible for startups to mobilize capital through the stock market.

“Once a stock market is established, there must be a legal framework to protect investors’ benefits. Meanwhile, startups won’t be able to meet the requirements,” Nam explained. 



“If startups could satisfy the requirements, they would rather list their shares on the official bourse to call for capital,” he said.



An analyst commented that startups may have to spend several years to satisfy the requirements to be able to mobilize capital through the stock market. 



The analyst went on to say that injecting money into startups is a risky investment channel.



“Only a few out of every 100 startups can succeed. Therefore, it would be not easy to sell the shares of startups on the bourse,” he said.



Chu Duc Hoang, founder and CEO of Zinmed, thinks that a stock market for startups for now and the next three years is not feasible.  



In general, the initial seed capital of Vietnamese startups is very small which is just equal to 1/10 of that in South Korea.



Hoang also warned that the value of startups is unclear and it would be very difficult to expose information about startups.



Nguyen Quang Thuan, CEO of StoxPlus, the stock information service provider, also thinks stock market is not a suitable model for startups to call for capital.



“Startups have good business ideas, but ideas must not be ‘commodities’ and they cannot be sold,” he said.



Thuan believes that ‘crowdfunding’ is the most suitable capital mobilization model for startups.

Vietnam aims to have one million businesses by 2020, up from the current 500,000 and the government will offer assistance in their early stage.