07:48 | 23/07/2024

Activities of Entrepreneurship and Investment Attraction in Mountainous Areas Will Receive Significant Support During the Period 2021 - 2025, Is That Correct?

Entrepreneurial activities and investment attraction in the mountainous areas will receive considerable support in the period from 2021 to 2025, is that correct? Your question is from T.Q in Ha Tinh.

Is it true that startup activities and attracting investment in mountainous areas will receive substantial support during the 2021 - 2025 period?

Recently, the Ministry of Finance issued Circular 55/2023/TT-BTC, which regulates the management, utilization, and settlement of non-business funds from the state budget to implement national target programs for the period 2021-2025.

In particular, the activities of entrepreneurship and attracting investment in mountainous areas receive significant support during the 2021 - 2025 period as specified in detail.

According to Article 14 of Circular 55/2023/TT-BTC, support for building startup activity models and attracting investment in mountainous areas is as follows:

- Support 50% of training costs to improve on-site technology and production techniques, but not exceeding 30 million VND per training course, with a maximum of 05 courses per model.

- Support 100% of contract costs for placing orders with institutes and schools to research and develop service products, but not exceeding 30 million VND per contract and a maximum of 05 contracts per model.

- Support 75% of costs for packaging design, labeling, advertising, and product branding, with a maximum of 150 million VND per model.

Regarding the operational costs of projects "Centers for Supporting Business Startups, Entrepreneurship, and Attracting Investment in Ethnic Minority and Mountainous Areas" at universities and the Program Coordination Office under the Ethnic Committee:

- Support the construction of websites, database systems, and electronic connection portals for online support, but a maximum of 1 billion VND per center;

- Support booths connecting and introducing ethnic minority and mountainous area products and attracting investment, with a maximum support level of 400 million VND per center (excluding maintenance, repair, and upkeep costs).

- Support the organization of events for ethnic minority entrepreneurship connection days, startup competitions, and business startup activities. The maximum support level is 200 million VND per program, with no more than 02 programs per year; up to 330 million VND per competition, with no more than 01 competition per year.

- Expenses for organizing commendations for young people, students, and prominent figures in successful entrepreneurship.

- Support organizing activities to attract investment, fairs, and promote the consumption of products from ethnic minorities and mountainous areas.

Is it true that startup activities and attracting investment in mountainous areas will receive substantial support during the 2021 - 2025 period? (Image from Internet)

Which enterprises are allowed to undertake innovative startup investment activities?

According to Article 4 of Decree 38/2018/ND-CP, enterprises undertaking innovative startup investment activities are specified as follows:

- Enterprises registered and established according to the 2020 Law on Enterprises have the right to undertake innovative startup investment activities as stipulated in Decree 38/2018/ND-CP.

- Enterprises are responsible for notifying and supplementing their innovative startup investment industries and professions according to the business registration law when undertaking innovative startup investment activities.

- The business registration agency is responsible for reviewing the validity of the application dossiers and supplementing the innovative startup investment industries and professions according to the business registration law.

What forms do enterprises use for innovative startup investments?

According to Article 3 of Decree 38/2018/ND-CP, the specific forms of innovative startup investments are regulated as follows:

Innovative Startup Investment

1. Investors as stipulated in Clause 1, Article 18 of the Law on Supporting Small and Medium Enterprises have the right to undertake innovative startup investment activities in forms that are not prohibited by law, which include:

a) Contributing capital to establish, purchase shares, and equity of small and medium innovative startup enterprises;

b) Establishing and contributing capital to innovative startup investment funds to implement investments.

2. Enterprises are allowed to use their science and technology development funds for innovative startup investments in accordance with the Law on Technology Transfer and this Decree. State enterprises conduct innovative startup investment activities according to regulations on managing and using state capital invested in production and business at enterprises and relevant laws.

3. Investors are responsible before the law for the legitimate origin of investment funds, ensuring they do not violate laws on anti-money laundering in Vietnam and internationally.

Thus, based on the above regulations, enterprises are allowed to make innovative startup investments in the following forms:

- Contributing capital to establish or purchasing shares and equity of small and medium innovative startup enterprises.

- Establishing and contributing capital to innovative startup investment funds to implement investments.

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