Ho Chi Minh City plans $19.7m venture fund to back startups

Ho Chi Minh City’s People’s Committee has approved a plan to establish a VNĐ500 billion (US$19.7 million) venture capital fund to support innovative startups and science and technology enterprises.

The fund will begin operations in 2026 and aims to expand its capital to at least VNĐ5 trillion (US$7.8 million) by 2035.

Its initial charter capital includes VNĐ200 billion from the State budget and VNĐ300 billion (US$11.7 million) from private investors.

The fund will operate under a public-private partnership model, with the State providing “seed capital” and expecting to mobilise VNĐ2–3 from the private sector for each VNĐ1 of State money.

Several corporations and investment funds, including Sovico Group, Vingroup, VinaCapital, Becamex IDC, VNG Corporation, CT Group, Hoa Sen Group, Lotte Ventures Vietnam, and FPT Corporation, have committed to joining as founding investors.

During 2026–35, the fund plans to invest in 50–150 innovative startups and science and technology enterprises, support commercialization of at least 50 new products or technologies, and help develop at least five large technology firms capable of listing on stock exchanges or engaging in international mergers and acquisitions.

Priority investment areas include digital technologies such as artificial intelligence, big data, and blockchain, semiconductor manufacturing, biotechnology, new materials, renewable energy, automation, and robotics.

🔗 Source: Vietnam News

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The fund’s corporate structure is designed for professional management

The fund will run as a public-private partnership. The State will put in “seed capital” and expects private backers to add VNĐ2–3 for each VNĐ1 of State money.
The setup keeps the State as a capital provider, while professional venture capital managers make day-to-day investment decisions.
Operations are set to start in 2026. Charter capital will begin at VNĐ500 billion (about US$19.7 million), with VNĐ200 billion from the State budget and VNĐ300 billion from private investors.
Ho Chi Minh City plans to lift the fund’s capital to at least VNĐ5 trillion by 2035.

The fund aims to build a market, not just back winners

From 2026–35, the fund plans to invest in 50–150 innovative startups and science and technology enterprises. It also targets commercialisation of at least 50 new products or technologies, plus support for at least five large technology firms that can list on stock exchanges or pursue international mergers and acquisitions.
Founding investors are set to include Sovico Group, Vingroup, VinaCapital, Becamex IDC, VNG Corporation, CT Group, Hoa Sen Group, Lotte Ventures Vietnam, and FPT Corporation.
Priority areas cover digital technologies such as artificial intelligence, big data, and blockchain. Focus also extends to semiconductor manufacturing, biotechnology, new materials, renewable energy, automation, and robotics.