Hanoi has established a venture capital fund on a trial basis to accelerate the growth of innovation, science and technology, and the capital city’s startup ecosystem.

The city’s People’s Council approved a resolution on the establishment of the fund on September 29.

The fund will operate under a public–private partnership model based on business investment contracts, without independent legal status.

Charter capital will come from the municipal budget, contributions from private investors, sponsorships, and other lawful sources. The city’s contribution will not exceed VND600 billion ($24.5 million) and must remain below 49% of the fund’s total charter capital, with the remainder to be provided by eligible private investors.

The fund will function on market principles, accepting risks while ensuring transparency, efficiency, and safeguards against losses or waste. Its mission is to support and promote innovation, as well as the commercialization of scientific and technological products.

The pilot will run for 10 years from the date of approval, with a mid-term review after five years and a full evaluation in the 10th year to determine whether the initiative will continue or be terminated.