Five years ago, Hanoi started a business incubator project withfinancial assistance from the European Union. The city authorities willdirectly monitor the activities of the Hanoi Business Incubator fromthis year forward.

The incubator aims to assist start-up businesses operating in food processing and packaging.

Beneficiaryenterprises are entitled to rent production and research facilities inthe incubator for a period of two or three year. During this time, theywill also receive advice on business matters. At the end of the period,they will leave the incubator to make place for up-and-comingenterprises.

In the last five years the project has assisted 200businesses, many of which have continued successfully after leaving theincubator.

At a recent meeting to review the project,representatives from the EU and the Vietnamese Government affirmed thatthe incubator is the best model to support small and medium-sizedbusinesses, especially at the start of their operations. This has beenproved in many countries. Therefore, Vietnam will use this model toassist businesses in other fields.

Tran Thi Chau, Chief ExecutiveOfficer of the Hanoi Business Incubator, said a similar model is beingconsidered to support businesses in the technology sector.

Overthe past five years, the EU has provided 875,000 EUR and other supportin the form of software as well as experts to the incubator.

As Vietnam continues the project, businesses are also expected to contribute to the incubator’s operation budget. -VNA