Based on Israel’s Yozma, Vietnam intends to create $100 M national venture capital fund
The Ministry of Science and Technology in Vietnam has suggested creating a $100 million National Venture Capital Fund for the years 2026–2028.
During a meeting of the government’s science-technology-innovation committee on Tuesday, the ministry stated that the effort aims to expedite the commercialization of strategic technologies and the creation of competitive technological firms.
The idea, which is based on Israel’s Yozma initiative, calls for the state to take the lead in the fund’s initial capital structure. In addition to the creation of distinct funds for various technology industries, the fund would progressively raise private capital between 2028 and 2035, making up 30 to 40 percent of the overall capital.
The ministry emphasized the difficulties in running the fund efficiently, particularly the tension between the ideals of public capital protection and the risk-tolerant nature of venture capital. An inadequate exit ecosystem with few methods for appraising IT firms and avenues for investors to recoup money is another problem.
In terms of governance, the ministry suggested hiring and compensating people based on the market, giving the fund’s investment council more authority, and fortifying relationships with universities, research centers, and technological incubators. Regarding risk management, the ministry stated that fund performance should be assessed throughout the whole portfolio rather than on specific transactions, with safeguards for decision-makers who adhere to the right protocols.
Regarding the legal framework, the ministry suggested that in order to enable controlled risk-taking in investments in strategic technologies, the government report to the National Assembly and issue a resolution on a particular mechanism, such as liability exemption for officials managing state-funded venture capital who adhere to regulations.
