The Ho Chi Minh City Venture Capital Fund, with an initial scale of VND 500 billion comprising budget and private capital contributions, is expected to become a new financial instrument for the innovative startup ecosystem.
On the afternoon of 17 April, Ho Chi Minh City introduced the Venture Capital Fund, whose operating legal entity is the Ho Chi Minh City Venture Capital Fund Joint Stock Company (HCM VIF JSC). This is the first venture capital fund in the country to be specifically designed to support and accompany startups from the seed stage through to growth.
The fund operates as a joint stock company under the Law on Enterprises, ensuring transparency and autonomy in governance and investment decision-making.
The initial charter capital is VND 500 billion, of which the budget contributes 40%, equivalent to VND 200 billion; the remainder is raised from private investors, businesses and financial institutions, including Vingroup (VND 60 billion), Sovico (VND 100 billion), Becamex (VND 50 billion), VinaCapital and Sunwah each contributing VND 25 billion, and corporations contributing VND 10 billion including VNG, CT Group, FPT and Hoa Sen.
Ho Chi Minh City Party Committee Secretary Tran Luu Quang, together with city leaders and Nguyen Thi Thanh Mai, Director of Ho Chi Minh City National University, congratulate the founding shareholders of the Venture Capital Fund for startups. Photo: An Phuong
Among the non-state investors, many were directly called upon by Ho Chi Minh City Party Committee Secretary Tran Luu Quang at a meeting with the community of businesses in science and technology held late last year. The goal set was for large enterprises and investment funds to join the city in supporting startups, so that the city gains more "unicorns".
Ho Chi Minh City sets a target that by 2035, the fund's total charter capital will reach VND 5,000 billion, with the private sector holding a 60% share of the capital contribution.
The fund prioritizes investment in innovative startups, science and technology enterprises, and digital technology industrial enterprises with fast growth potential.
The key fields selected for investment 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.
According to Mr. Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology, the venture capital fund 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.
Innovative startups of Ho Chi Minh City attend the launch ceremony on 17 April. Photo: An Phuong
Representing the investors, 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, said the fund's goal is for every dong of capital put in to become a "magnet" attracting an additional three to five dong of capital from private and international investment funds. This capital focuses on outstanding startup seeds in the fields of core technology, green solutions and digital transformation.
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. 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.
Ho Chi Minh City is the locality with the largest concentration of the startup business community in the country and is home to the headquarters of many large technology corporations. However, the ecosystem still lacks local venture capital funds operating under the market mechanism to play the role of "seed capital" and lead the flow of social capital.
Speaking at the launch ceremony, Mr. Nguyen Manh Cuong, Vice Chairman of the Ho Chi Minh City People's Committee, pledged to continue to accompany and create every favorable condition for the fund to operate according to market principles, transparently and effectively, attracting social resources for the innovative startup ecosystem.
