Launch of the Ho Chi Minh City Venture Capital Fund with a scale of VND 500 billion

Over the past decade or more, venture capital activity in Vietnam has developed considerably, but its scale remains limited compared with the region. After a period of strong growth in 2021 with total investment capital of around USD 1.4 billion, the market in recent years has held at USD 500-600 million per year. Vietnam's startup ecosystem currently has around 4,000 startups, yet most of the investment capital still comes from foreign funds; the number of domestic venture capital funds is small and their financial strength is not yet large.

As the locality with a large concentration of startups and many technology enterprises, Ho Chi Minh City implemented many programs to promote innovation during the 2021-2025 period. However, the ecosystem still lacks venture capital funds operating under the market mechanism that are capable of playing the role of "seed capital" to lead the flow of social capital.

The Ho Chi Minh City Venture Capital Fund was formed on the basis of the Government's Decree No. 264/2025/ND-CP and the City People's Committee's Decision No. 1267/QD-UBND. The fund operates as a joint stock company, ensuring autonomy and transparency in governance and investment decisions.

The fund's initial charter capital is VND 500 billion, of which the city budget contributes 40% (VND 200 billion), with the remainder raised from private investors, businesses and financial institutions. This public-private partnership model aims to create a platform to attract social resources while enhancing the efficient use of State capital.

Under the orientation to 2035, the city sets a target of raising the fund's total charter capital to at least VND 5,000 billion, of which social resources account for at least 60%. The fund prioritizes investment in innovative startups, science-technology enterprises and digital technology industrial enterprises with fast growth potential, focusing on fields such as artificial intelligence, big data, semiconductor microchips, biotechnology, green technology, automation and robotics, along with digital economy and circular economy solutions.

Mr. Nguyen Manh Cuong, Vice Chairman of the Ho Chi Minh City People's Committee, said that the establishment of the fund is a concrete step in implementing the central government's directions on developing science, technology, innovation and digital transformation. The city is committed to creating the conditions for the fund to operate according to market principles, transparently and effectively, thereby attracting additional social resources for the startup ecosystem.

According to Mr. Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology, this is a new financial model at the local level, allowing State capital to take part in investment with a controlled level of risk, contributing to leading and activating private capital to participate.

Representing the operating unit, Mr. Hoang Duc Trung, Director of VinaCapital Ventures, said the fund will focus on the Series A and B funding rounds, the stage at which many domestic startups need capital to scale up. Besides financial resources, the fund will support businesses in governance, connecting experts and investors, and expanding into domestic and international markets.

Immediately after the launch, HCM VIF JSC will finalize its organizational structure, hold its first General Meeting of Shareholders, and issue its charter and investment procedures to ensure transparency and efficiency in the use of capital. At the same time, the unit will coordinate with agencies and startup support organizations to receive and evaluate projects, promote international cooperation, and build co-investment mechanisms with domestic and foreign funds.

In the coming period, the fund plans to announce its project selection criteria and priority fields for each phase, as well as its plan to roll out programs to connect with and search for promising startup projects. The Ho Chi Minh City Department of Science and Technology will continue to coordinate to ensure a quality pipeline of projects and create favorable conditions for the fund to operate effectively.