Australia provides $10 M to Do Ventures’ climate investment fund in Vietnam

To support climate-focused companies in Vietnam and bolster the nation’s climate investment market, the Australian government has committed up to $10 million to Fund II of Vietnam’s Do Ventures.

Do Ventures was founded in 2020 with its $50 million Fund I, an investment firm that focuses on early-stage Vietnamese startups.

The Australian Embassy to Vietnam said in a statement on Tuesday that the new funding will assist small and medium-sized businesses in the early and growth stages that operate in sectors related to Vietnam’s energy transition and climate adaptation, such as manufacturing, sustainable consumption, and AI-enabled climate solutions. Australian Development Investments’ first commitment under its Vietnam investment window is this investment.

In the private equity and venture capital industry, where women make up 11% of senior investment professionals in emerging markets, the embassy pointed out that the investment in Do Ventures, a woman-led venture capital firm, can help address gender disparities.

Vietnam presently makes up 40% of the Australian Development Investments (ADI) portfolio, according to the Australian government. The ADI has improved financing access for 260,000 small business owners, supported 26 Vietnam-based SMEs and 5,781 jobs through five investment funds, and collaboratively installed 19.2 MW of new solar capacity.

Gillian Bird, the Australian ambassador to Vietnam, emphasized that the pledge would encourage more private investment in climate solutions in Vietnam.

According to Do Ventures’ general partner Vy Le, the money will help the company grow its portfolio of climate investments and support Vietnamese startups creating sustainable technologies and climate-related solutions.

Additionally, the ADI stated that it will collaborate with Do Ventures to improve its climate investment capabilities, including impact measurement and environmental, social, and governance practices. The Australian Government’s AU$250 million ($179.3 million) impact investment fund, the ADI, is dedicated to encouraging private investment and promoting gender and climate outcomes.