A plan to create a venture capital (VC) fund to support technology startups, commercialize research, and accelerate innovation in important strategic industries has been approved by authorities in Ho Chi Minh City, Vietnam.
The new fund will function as Ho Chi Minh City Venture Capital Fund JSC, according to the local Department of Science and Technology. The initial charter capital of the fund is anticipated to be VND500 billion, or roughly $19.1 million. Initially, private investors will contribute VND 300 billion (60%) and the municipal government will contribute VND 200 billion (40%). This month, the city hopes to finish the fund’s legal processes.
By drawing in more private funding, the city intends to increase the fund’s size to at least VND5,000 billion ($190.7 million) by 2035.
During an investment cycle, the fund permits total losses that do not exceed 50% of the government’s capital contribution. High-value technology industries like artificial intelligence, big data, blockchain, semiconductor and microchip design, biotechnology, advanced materials, renewable energy, robotics, and automation will be given top priority for investment.
A number of significant Vietnamese companies, including Vingroup, VinaCapital, Sovico, Becamex IDC, VNG, CT Group, Hoa Sen Group, Lotte Ventures Vietnam, and FPT, have indicated their interest in becoming founding shareholders.
At the moment, foreign investors provide the majority of the funding for Vietnamese startups. In contrast to market-oriented investment mechanisms, public support programs have mostly concentrated on grants or research funding. The new fund is intended to serve as “seed capital,” assisting in luring more private investment into rapidly expanding technology firms. The fund intends to support the commercialization of at least 50 new products or technologies while investing in 50 to 150 creative startups and science-technology businesses between 2026 and 2035.
