Enhancing Youth Entrepreneurship Support Mechanisms in Bac Ninh Province, Vietnam: An Empirical Analysis and Policy Implications

The transition of Vietnam’s economy toward a high-tech, innovation-driven model relies heavily on the cultivation of a robust domestic private sector, which is intrinsically linked to the promotion of youth entrepreneurship. This research provides an exhaustive empirical investigation into the current mechanisms supporting youth entrepreneurship in Bac Ninh province, a premier destination for Foreign Direct Investment (FDI) and industrial manufacturing in Vietnam. Grounded in a comprehensive literature review encompassing human capital theory, institutional economics, and entrepreneurial ecosystem models, the study employs a mixed-methods approach. It synthesizes secondary macroeconomic data from provincial authorities and national reports with primary insights derived from youth-led enterprises across agricultural, industrial, and service sectors. The findings reveal that while Bac Ninh has implemented highly progressive policies—such as the unprecedented 90 billion VND youth startup fund entrusted through the Social Policy Bank, the deployment of Plan No. 151/KH-UBND for innovation, and the implementation of tax exemptions under Decree No. 20/2026/ND-CP—structural and operational bottlenecks persist. Young entrepreneurs continue to face significant barriers regarding access to scalable commercial capital, the acquisition of advanced entrepreneurial competencies, and integration into global supply chains dominated by multinational corporations. The study identifies a profound "FDI paradox" wherein high local labor costs and land values, driven by foreign enterprises, inadvertently crowd out nascent domestic startups. The discussion provides strategic, actionable policy implications for both provincial and central governments, emphasizing the critical need for alternative financing frameworks such as credit guarantee funds, rigorous curriculum reforms in higher education, and the creation of specialized incubation zones to foster direct supply-chain linkages between local youth startups and multinational entities. Ultimately, this research contributes to the broader academic discourse on transitioning regional economies from FDI-reliance to endogenous, innovation-led growth.