The Vietnam Climate Innovation Center will provide a targeted suite of early-stage financing, technology commercialization, business development and capacity building services to Vietnamese private sector innovators. The Center will work to incubate, commercialize and grow technology solutions that support Vietnam's low-carbon development, resiliency and adaptation to climate change while creating jobs and promoting domestic competitiveness
Vietnam has already suffered the effects of climate change in increasing toll from typhoons, floods and saline instrusion due to the rise of seal level. The country responds by initiating the Green Growth and National Climate Change Strategies. Likewise, the government has set up a Specific Partnership in Response to Climate Change (SPRCC) as a platform to leverage international support for the country’s mitigation and adaptation efforts.
Though there is great support coming from development banks and government, there is a lack of support dedicated to the private sector, namely for SMEs and start ups. After conducting a stakeholders' survey and needs analysis for a Vietnam Climate Innovation Center (VCIC), the CTP received a positive response from over 100 SMEs, researchers, farmers, innovators and institutions.
The CIC's services and programs can be categorized as follows. It is important to note that leveraging and coordinating existing institutions and initiatives in Vietnam will form a key component of the CIC's approach to implementation and service delivery. Furthermore, the programs and services offered by the CIC only address a subset of the needs identified by private sector innovators during consultations. Navigating complex regulation, business-enabling environments, market and political risks will be outside the scope of the Center. The below programs were those identified through extensive stakeholder consultations and will be ramped up over the life of the program based on demand and impact.
Access to Finance
Providing risk capital through highly flexible first-loss equity investments. This fills the gap between micro-loan amounts and those offered by existing fund managers.
Catalyzing investment syndication and debt facilitation between CIC companies and private financers, state development banks, and the Vietnamese Diaspora to build local investment capacity.
Offering proof-of-concept grants that enable local innovators to demonstrate and scale their climate technologies and business models.
Promoting collaborative industry partnerships, supported by a comprehensive technology database (components, sourcing, certifications, costs, user guides, and intellectual property).
Linking local innovators to facility providers for prototyping, testing, production and other logistical needs (e.g. office space, equipment).
Training individuals who are eligible for CIC financing on basic business planning and financial management, in addition to offering a fund for out-sourcing other advisory services.
Organizing seminars and university partnerships to promote professional development, business administration/entrepreneurship, and aware-ness of climate technology issues.
Networking SMEs with angel investors, business mentors, and technical experts at the national, regional and global levels.
Producing market studies, cases and analytical reports on climate technology sectors and opportunities at a local, regional and global level.
Encouraging dialogue between government and the private sector to strengthen Vietnam‟s policy framework around R&D, innovation, green growth, taxation, and exports.
Supporting the growth and establishment of climate sector business associations in Vietnam.
Networking Vietnam's climate innovators to their regional and global counterparts by hosting an annual CIC Forum and facilitating trade or capacity-building relationships.
infoDev's CTP is in an excellent position to help these entrepreneurs, innovators and SMEs overcome current hurdles to deliver emission savings, provide jobs and alleviate the country's vulnerability to climate change. infoDev will manage and oversee implementation including the provision of technical assistance, performance evaluation and linking the CIC with global level activities.
Department for International Development (DFID)
Australian Government (AusAid)
Business Plan: Developed with over 200 stakeholders including the Ministry of Planning and Investment, and the ministry of Natural Resources and the Environment.