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Sitting in a caf at the Daewoo Hotel Hanoi, Vietnamese director Phan Dang Di is on the edge of his seat and eager to talk. Local and foreign festival films are lighting up screens across his countrys capital for the second time in two years. As one of the local scene's leading young talents, Di has spent much of the Hanoi International Film Festival near the center of the action, popping up seemingly everywhereat panel discussions, seminars, screenings and official banquets.

In 2010, Di's debut film, Bi, Dont Be Afraid was Vietnam's first feature selected to appear at the Cannes International Critics Week. A moody domestic drama, with several bold sex scenes, the film lost five minutes to censorship in Vietnama process Di describes as very painfuland was rendered almost unrecognizable in its domestic release that same year. Abroad the film was picked up by Acrobates Films and given a 60-cinema run in Paris, where it sold 10,000 tickets. The film was screened as part of HANIFF 2012again in censored form.

This summer Di will begin producing his production partner Nguyen Hoang Dieps directorial debut, Flapping in the Middle of Nowhere, which was awarded 50,000 euro in financing from the Berlinale World Cinema Fund earlier this month and won the MPA-sponsored New Talent prize at the inaugural HANIFF Talent Campus last Wednesday. Di says he plans to begin shooting his second film, Big Father, Small Father, and Other Stories in the fall.

STORY:BerlinaleWorld Cinema Fund Selects Filmmakers From Vietnam, Argentina, Mongolia and Turkey

Taking time out from his hectic schedule at HANIFF, Di spoke to The Hollywood Reporter about the challenges and opportunities young Vietnamese filmmakers are facing as their domestic industry gradually grows and opens to the world.

The Hollywood Reporter: What's been your impression of the second edition of the Hanoi International Film Festival?

Phan Dang Di: Well, overall, I think its been good. As you know, its a young festival and we are still learning, but its important that this is happening. It gives the Vietnamese audience a chance to see some of our important older Vietnamese films and also interesting work from around the world. The festivals new Talent Campuswhere I have done some talksis also an important step forward.

THR: How so?

Di: Because participating in these kinds of activities is the only way for young independent Vietnamese filmmakers to get their films made and possibly seen by the world now. My own case is a good example. I participated in the Pusan Promotion Plan in 2007 and L'Atelier at Cannes in 2008. Because of these experiences, I not only learned how to make a better film, and met many generous and experienced film professionals, but I learned that there are many ways to get financial support from grants and film funds. I was able to raise $600,000 to produce Bi, Dont Be Afraid (2010), from different grants such as the World Cinema Fund and through contacts I made during these trips abroad. Before I went abroad, working in Vietnam, I never would have dreamed that I would be able to raise over half a million dollars to produce my first filmno way. So, having our own talent campus that gives these 24 young Vietnamese filmmakers exposure to experienced professionals and knowledge of international standards is a great thing. Of course, not all of the students have polished projects to present; and not all of them are ready. But even if just one or two go on to do some interesting work that makes it into festivals, it will have been worth it. The fact that the talent campus was added this year also shows that the government is finally recognizing that investing in young filmmakers is the only way Vietnamese cinema will grow and develop like they want it to. Thats encouraging.

STORY: HANIFF Debuts New Talent Campus in Bid to Boost Vietnamese Industry

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Vietnamese Director Phan Dang Di Slams Government Censorship of Sex Scenes at Hanoi Film Fest