DID CREATIVE HUBS START SO GREAT BUT END SO FAST? SECTION 2: THEY NEED WORTHY POSITIONS
The creative hubs are still new in our country; therefore, there has not been any specific legal entity of creative hubs until now.
Whether creative hubs are non-profit or profit-making activities, most of them, including creative hubs aren’t for community activities, must register their businesses and must pay taxes under the legal status of the business. It is also because there is no particular legal status for creative hubs that the supporting mechanisms and policies for them are general and not really effective.
Challenges come from the legal framework
Until now, there is no clear legal definition for creative hubs. So, what model will a creative hub be if it wants to exist? Ms. Tram Vu, the founder of Manzi Creative Hub in Hanoi, said that Manzi was established in 2012. From a legal perspective, Manzi is an individual business household and has to pay tax as other normal businesses. Manzi’s revenue comes from the business of coffee and beverages to raise money for art exhibitions, seminars and film screenings. “A creative hub that is registered as a private business is not very reasonable. If there is a completed legal framework for a non-profit organization, it will be very good for creative hubs in Vietnam ”, said Ms. Tram Vu.
| “The state does management. Artists do creative works. The difficulty is that we do not understand each other, so some regulations are making the situation more challenging. In my opinion, there should be clearer and more specific regulations ”, said Nguyen Tra, Director of San Art, Ho Chi Minh City. |
Manzi is a bar and coffee shop in an ancient French villa on Phan Huy Ich Street, Hanoi. The shop also hosts small exhibitions, art installation. It’s the only place in Hanoi that sells paintings, sculptures of famous artists of our country at a reasonable price, through the annual program “Ha Noi Art for you”.
Like many other creative art spaces, Manzi is founded by individuals or groups of artists and operates in specific areas such as music, fine arts, contemporary dance … The community knows these creative hubs as a group of artists or a creative hub for social purpose but under the legal perspective, the founders must register a business. These hubs could register as individual business households, joint-stock companies, even social enterprises. They spend 51% of the revenue on community purposes and artistic activities; however, they don’t receive any tax incentives. This is supposed to be a paradox!
Art activities have their own characteristics and create value which is much more than material benefit. However, these hubs still have to operate and pay taxes like normal businesses. That is, creative hubs in Vietnam work for community purpose and maintaining themself but have to be under the legal status of businesses. This is not an easy job.
Researcher Truong Uyen Ly – Director of Hanoi Grapevine, and the British Council, made a report on the creative hub in our country, presents an example, San Art or Nha San Collective survived on the financing resources of the projects they carry out. The entire amount of funding is to pay for the artists, artworks, advertisements for the exhibition of artworks. “This funding is not for business purposes; however, they must register for business to have an invoice, proof that they are using transparent money. And, they have to pay taxes because they are under the legal status of businesses. This is the existing paradox ”, Truong Uyen Ly stated.
Need a specific position
The creative hub is very different from other types of business because it creates spiritual values, social bênfit and is so meaningful to the community. The material value, measured through revenue and profit, is just a small part of the benefit it bears.
Mo Do – a creative hub at No1 Le Truc Street, Hue City, Thua Thien Hue Province, was founded a year ago to organize art exhibitions and screen films every week. Pham Thi Thanh Mai, one of the founders of Mo Mo, revealed that there was no way except to register the hub as household business to have resources for its development. “We organize and manage the hub on our own. Our goal is to develop the community, so we expect to have some support and be recognized that we are different from normal businesses ”, Ms. Pham Thi Thanh Mai expressed.
The main problem is the legal framework. According to Ms. Tran Kim Ngoc, Director of The Hub For Experimental Music & Art Đom Đóm (Hanoi), it is important to see a particular role and position of creative hubs to adjust the legal framework and have practical and effective support policies. Let’s take the supports of the authorities of Hong Kong (China) or Singapore for creative hubs as examples. “The Hong Kong Ministry of Culture found the Hong Kong Culture and Arts Council. Besides, Hong Kong authorities have an annual budget for artists. Since this Council was found, there have been many contemporary works and many famous artists of a new generation. Singapore also a bright example for supporting creative hubs, the Ministry of Culture supports contemporary art, provides a budget, and helps with long-term development ”, said Ms. Tran Kim Ngoc.
| “The current law does not have a position for cultural creative hubs that are not for profit. If these hubs operate totally like the way NGOs or charities are, they are more difficult to register for legal entities”, said Truong Uyen Ly, Director of Hanoigrapevine. |
In Vietnam, recently, many international organizations such as the European Union, British Council, Goethe Institute, etc, have many activities to raise awareness and develop Vietnamese cultural industries. The Vietnam Cultural Creative Hub Project, co-sponsored by the European Union and the British Council, is a concrete example of such effective cooperation.
Art for you event at Manzi (Source Manzi)
According to Ms. Nguyen Phuong Hoa, Deputy Director of International Cooperation Department under the Ministry of Culture, Sports and Tourism, thanks to this cooperation, there have been certain changes in the community, especially in the whole society’s awareness of creative hubs in the cities, activities connecting artists, or art practitioners. The project strengthens the ability of creative hubs, promotes networking to make a strong community. Maintaining connections between creators in the creative hubs and policymakers helps managers adjust and issue appropriate policies to develop creative hubs.
It is time to have a comprehensive view of the position and role of creative hubs in the development of economic and social as well as contemporary art. Only then can we have specific policies such as tax incentives, location, licensing, censorship, to create good conditions for the creative hubs to bring out its full potential.
| Until now, there is no clear legal definition for creative hubs. And It’s very difficult to balance between the survival of the hubs and art to enhance maximum the creativity”, Bung Tran, Creative HUB, HCMC. |
By VOV6