Vietnam’s startup ecosystem (2): A summary of Legal frameworks, mechanisms and policies for startup.In recent years, the Vietnamese government has introduced numerous policies aimed at supporting innovative startups and entrepreneurs.Overview In recent years, the Vietnamese government has introduced numerous policies aimed at supporting innovative startups and entrepreneurs. Two important legislation was passed in 2017, including the Law on Supporting Small and Medium Enterprises (SMEs) and the Law on Technology Transfer. Both of these laws provide new legal basis for supporting startups from many sources. Crucially, the Law on Supporting SMEs also includes the first legislative definition for innovative SMEs, paving the way for later support and regulations for innovative startups. In addition, the law also provided the first legal framework for venture investment in Vietnam and also support for such activities in Vietnam from the government.   Law on Supporting SMEs In 2018, a series of clarifying regulations of these two laws were passed. These decrees were passed with regards to the Law on Supporting SMEs, including: Decree No. 39/2018 / ND-CP further expanded upon the support being provided for SMEs and Innovative SMEs, aimed at helping firms explore and implement innovations, including subsidies for IP related services, consultation, mentoring and also training for management and workers, including on-the-job training. Additional support, including financial aid for legal advice at state agencies, was later included in Decree No. 55/2019 / ND-CP. Decree No. 38/2018 / ND-CP, which also expanded upon the provisions regarding venture funds, providing details on their organization, activities, legal status and the various procedures for their formation, reporting and dissolution. The decree also provided details on the government support for venture capital activities by providing the mechanisms for which municipal budgets can be utilized to match investments into innovative startups. Decree No. 34/2018 / ND-CP dated March 8, 2018 on the establishment, organization and operation of credit guarantee funds for SME.   Law on Technology Transfer For the Law on Technology Transfer, Decree No. 76/2018 / ND. -CP helped to further expand upon the support provided, which included allowing for the usage of the Science and Technology development funds; which have special tax exemptions; of a company for investment into innovative startups. Other areas of policy development were also covered by the government in Dispatch No. 1128 / TTg-DMDN which set out directions of government policy on attracting investment for innovative startups. A number of policies were set out and assigned to ministries and agencies in order to formulate and develop, including frameworks for crowdfunding, P2P-lending, updating legal and administrative procedures for foreign investments and workers in Vietnam and also setting out plans for supporting the formation of investor networks and associations in Vietnam. In 2019, there were further steps taken to develop support for startups. This included Resolution No. 01 / NQ-CP & Resolution No. 02 / NQ-CP, which set out a few areas to be developed and implemented by various Ministries and Agencies, including: Develop and implement supplementing regulations and allocate the budgets required for support aimed at innovative startups such as supplementary financing, preferential loans, loan interest rate support and loan guarantees. Promoting the usage of the Science and Technology Development Fund of enterprises for investments into startups, encouraging innovation and R&D. Develop policies to encourage greater investments into technological development and innovative R&D, especially from the private sector. Develop plans for national startup support centers in Hanoi, Ho Chi Minh City and Da Nang and also building a national entrepreneurship network; Promote restructuring of the national science and technology program in the direction that businesses are central to the national innovation system. In addition, Decree No. 13/2019 / ND-CP also introduced a tax exemption for STI enterprises, specifically: Tax exemption for 4 years and 50% reduction of payable tax amounts for 9 subsequent years. Certain income resulting from R&D and STI activities are eligible for enterprise income tax exemption or reduction. These exemptions will allow innovative science and technology startups to enjoy tax exemptions.