HCMC approves plan to establish $19 mln venture capital fund

Under a project approved on March 5 by the People’s Committee of Ho Chi Minh City, the Ho Chi Minh City Venture Investment Fund, which will operate under the model of a joint‑stock company named Ho Chi Minh City Venture Investment Fund JSC, will be established.

According to the plan, the company will have an initial charter capital of VND500 billion (approximately $19 million), including VND200 billion from the state budget (40%) and VND300 billion from private investors (60%). From 2027 to 2035, the fund will add capital annually, aiming to reach a minimum charter capital of VND5 trillion (nearly $191 million) by 2035.

The city has received commitments to participate as founding shareholders from several corporations, enterprises, and investment funds such as SOVICO, Vingroup, VinaCapital, Becamex, VNG, CT Group, Hoa Sen Group, Lotte Ventures Vietnam, and FPT.

The project aims to promote the innovation system, develop the startup and digital economy ecosystem, and enhance the city’s competitiveness. The fund is defined as a support mechanism combining public and private resources, in which the city’s budget joins with enterprises and investors to form a public–private partnership model.

The establishment of the fund is intended to support innovative startups, technology incubation, and digital transformation in the city. In terms of potential, the city already has a vibrant startup ecosystem, attracting nearly 50% of the country’s total startups. However, the market still lacks large‑scale, professionally operated domestic venture funds. 

From 2026 to 2035, the fund is expected to invest in about 50–150 innovative startups and science‑technology enterprises, while supporting the commercialization of at least 50 products or technologies. It also aims to incubate a minimum of five technology companies capable of listing on the stock market (IPO) or engaging in mergers and acquisitions (M&A).

In terms of capital mobilization, the fund will adopt a “seed capital” mechanism, attracting 2–3 private investment units for every unit of state capital, with the goal of ensuring that social resources account for more than 60% of the fund’s total financing. The fund’s operations are also expected to help raise the contribution of the innovation and high‑tech economy to about 20–25% of the city’s GRDP by 2030.