Vietnam's Touchstone Partners launches $10m green fund for SEA

Vietnamese venture capital firm Touchstone Partners has launched a US$10 million Green Transition Fund to invest in startups focused on sustainable agriculture, circular economy, waste management, and new energy technologies across Vietnam and Southeast Asia.

It plans to start deploying the fund in December 2025 and will offer portfolio companies coaching and support from its network.

Touchstone Partners has previously invested in climate-tech startups such as Selex Motors, Stride, Alterno, Enfarm, Neorice, and Forte Biotech.

Companies in its climate-tech portfolio attracted over US$3 million in additional funding from international partners between 2023 and 2025.

The new fund will continue to work with organizations including Temasek Foundation and the Global Green Growth Institute to provide blended finance and grants.

Vietnam has prioritized climate innovation since its net-zero commitment at COP26 held in Scotland in 2021, introducing policies to support green initiatives and sustainable economic growth.

🔗 Source: Touchstone Partners

🧠 Food for thought

Implications, context, and why it matters.

Vietnam’s pilot ETS and blended finance open a window for climate-tech vendors

Vietnam’s pilot Emissions Trading System (ETS) starts in August 2025 and covers thermal power, cement, and iron and steel 1. Facilities must run emissions inventories and get free allowances set by production benchmarks, install Measurement, Reporting, and Verification (MRV) setups plus carbon accounting software 1 2.
Officials are drafting sector guides, carbon credit recognition rules, and trading regulations ahead of the pilot 3. Climate-tech startups can track these releases and launch MRV software or emissions tracking tools or carbon credit verification that matches mandatory reporting from 2025 3.
Touchstone Partners’ Green Transition Fund will team with Temasek Foundation, P4G, and the Global Green Growth Institute to deliver blended finance plus grants for startups in sustainable agriculture or waste management that need patient capital before commercial scale.

Corporate decarbonization pilots in Vietnam need specialized climate tech

During the pilot, companies can offset up to 30% of emissions with domestic or international credits 4. Carbon project developers and offset marketplaces can help manufacturers source eligible credits before a 2029 ETS rollout.
Vendors building industrial software or IoT can target energy-heavy plants, since coal covers 50% of generation in 2024 while fossil gas buildout rises 4. Firms will need real-time energy monitoring plus optimization to hit emissions quotas while containing energy costs as grid reforms add new renewables.
Touchstone Partners’ climate-tech portfolio raised over US$3 million from international partners between 2023 and 2025. Startups with traction in regulated climate markets can win follow-on rounds, then expand across Southeast Asia under similar policies.