Ho Chi Minh City sets up VND 500 billion venture capital fund, rising to VND 5,000 billion by 2035
The Ho Chi Minh City Venture Capital Fund operates under a public-private partnership model, focusing on Series A and B rounds for technology startups, with a target of scaling up to VND 5,000 billion by 2035.
Ho Chi Minh City establishes a VND 500 billion venture capital fund under a public-private model, aiming to invest in technology startups and expand to VND 5,000 billion by 2035.
The fund will focus on the Series A and B funding rounds - the stage when many startups are thirsty for capital - Photo: DUC THIEN
On 17 April, the Ho Chi Minh City Department of Science and Technology held the launch ceremony for the Ho Chi Minh City Venture Capital Fund, whose operating legal entity is the Ho Chi Minh City Venture Capital Fund Joint Stock Company (HCM VIF JSC).
The fund has an initial charter capital of VND 500 billion, of which the city budget contributes 40% (VND 200 billion), with the remainder raised from reputable private investors, businesses and financial institutions. This structure reflects a tightly knit public-private partnership model: budget capital plays the role of building trust and getting things started, while social resources are the key factor for scaling up the fund over the long term.
Under the long-term roadmap to 2035, the city sets a target of raising the fund's total charter capital to at least VND 5,000 billion, on the principle that mobilized social resources account for at least 60% of the total.
The fund prioritizes investment in innovative startups, science and technology enterprises, and digital technology industrial enterprises with fast growth potential.
The key fields include: artificial intelligence, big data, semiconductor microchip technology, biotechnology, green technology, automation and robotics, and so on; along with digital economy and circular economy solutions and digital transformation solutions aligned with the city's sustainable development orientation.
Speaking at the ceremony, Mr. Nguyen Manh Cuong, Vice Chairman of the Ho Chi Minh City People's Committee, emphasized that the birth of the Ho Chi Minh City Venture Capital Fund Joint Stock Company is a breakthrough answer to the capital problem of early-stage investment, marking a historic step in concretizing the central government's major directions on science, technology, innovation and digital transformation.
The city is committed to continuing to accompany the fund and create every favorable condition for it to operate according to market principles, transparently and effectively, becoming a "super magnet" attracting social resources for the innovative startup ecosystem.
Mr. Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology, said the fund was formed on the basis of the Party and State's major directions on developing science, technology, innovation and digital transformation, together with a breakthrough legal framework.
This is an entirely new financial model at the local level, allowing State capital to be subject to "controlled risk acceptance", thereby effectively mobilizing and leading social resources to accompany the city's innovative startup ecosystem.
At the ceremony, the organizing committee also introduced the first few promising startup projects proposed for investment consideration. This activity aims to create a direct connection between the fund and the startup community, demonstrating the city's commitment to promoting projects with high application potential and concrete contributions to socio-economic development.
Focusing on the Series A and B funding rounds
From an investor's perspective, Mr. Hoang Duc Trung, Director of the VinaCapital Ventures investment fund, who has been assigned to run the Ho Chi Minh City Venture Capital Fund, shared that with a scale of VND 500 billion in the initial phase and an expectation of reaching VND 5,000 billion after 10 years, the investment fund is not merely financial figures but also the trust of the city's leadership and people in a future of growth based on technology and innovation.
"We set a target that every dong of the fund's capital will become a 'magnet' attracting an additional three to five dong of capital from private and international investment funds, focusing on outstanding startup seeds in the fields of core technology and green solutions and digital transformation," Mr. Trung shared.
According to Mr. Trung, the fund will focus on the Series A and B funding rounds - the stage at which many Vietnamese startups are thirsty for capital to break through in scale. The fund not only provides financial capital but also accompanies businesses in governance, connecting networks of experts and investors, and helping businesses enhance their competitiveness and expand into domestic and international markets.
Source: Tuổi Trẻ — tuoitre.vn. This article is republished to share knowledge with the founder and investor community in the HCM VIF ecosystem.
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