Ho Chi Minh City launches a 500 billion VND venture capital fund for startups.
The Ho Chi Minh City Venture Capital Fund, with an initial size of 500 billion VND, comprising both government and private capital contributions, is expected to become a new financial tool for the innovative startup ecosystem.
On the afternoon of April 17th, Ho Chi Minh City introduced a venture capital fund operated by Ho Chi Minh City Venture Capital Fund Joint Stock Company (HCM VIF JSC). This is the first venture capital fund in the country specifically designed to support and accompany startups from the incubation stage to growth.
The fund operates as a joint-stock company under the Enterprise Law, ensuring transparency and autonomy in governance and investment decision-making.
The initial charter capital is 500 billion VND, of which the state budget contributes 40%, equivalent to 200 billion VND; the remainder is raised from private investors, businesses and financial institutions, including Vingroup (60 billion VND), Sovico (100 billion VND), Becamex (50 billion VND), VinaCapital and Sunwah each contributing 25 billion VND, and corporations contributing 10 billion VND including VNG, CT Group, FPT, and Hoa Sen.
Ho Chi Minh City Party Secretary Tran Luu Quang, along with city leaders and Director of Vietnam National University Ho Chi Minh City Nguyen Thi Thanh Mai, congratulated the founding shareholders of the venture capital fund for startups. Photo: An Phuong.
Among the non-state investors, many were directly called upon by the Secretary of the Ho Chi Minh City Party Committee, Tran Luu Quang, at a meeting with the science and technology business community held late last year. The goal was for large enterprises and investment funds to join the city in supporting startups, so that the city could have more "unicorns".
Ho Chi Minh City aims to increase the total charter capital of the Fund to 5,000 billion VND by 2035, with private investors holding a 60% stake.
The fund prioritizes investment in innovative startups, science and technology businesses, and digital technology industrial businesses with high growth potential.
The key areas selected for investment include artificial intelligence, big data, semiconductor microchip technology, biotechnology, green technology, automation and robotics... along with digital economy solutions, circular economy solutions and digital transformation solutions that align 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, venture capital is a completely new financial model in the locality, allowing state capital to be "accepted with controlled risk," thereby effectively mobilizing and leading social resources to support the city's innovative startup ecosystem.
Innovative startups from Ho Chi Minh City participate in the launch ceremony on April 17th. Photo: An Phuong
Representing the investors, Mr. Hoang Duc Trung, Director of VinaCapital Ventures, who is in charge of managing the Ho Chi Minh City Venture Capital Fund, said the fund's goal is for every dollar invested to become a "magnet" attracting an additional three to five dollars from private and international investment funds. This capital will focus on outstanding startup seeds in core technologies, green solutions, and digital transformation.
The fund will focus on Series A and B funding rounds – a stage where many Vietnamese startups are desperate for capital to break through. The fund will not only provide financial resources but also offer management support, network with experts and investors, and assistance to businesses in enhancing their competitiveness and expanding their markets both domestically and internationally.
Ho Chi Minh City has the largest concentration of startup businesses in the country and is home to many large technology corporations. However, the ecosystem still lacks local venture capital funds operating on market mechanisms to act as "seed capital," guiding the flow of social capital.
Speaking at the launch ceremony, Mr. Nguyen Manh Cuong, Vice Chairman of the People's Committee of Ho Chi Minh City, pledged to continue to support and create all favorable conditions for the fund to operate according to market principles, transparently and efficiently, attracting social resources for the innovative startup ecosystem.
Le Tuyet,
According to Vnexpress