Authorities in Vietnam’s Ho Chi Minh City have approved a plan to establish a venture capital (VC) fund aimed at boosting technology startups, commercializing research, and accelerating innovation in key strategic industries.
According to the municipal Department of Science and Technology, the new fund will operate as Ho Chi Minh City Venture Capital Fund JSC. The fund is expected to launch with an initial charter capital of VND500 billion (about $19.1 million). Initially, the municipal government will contribute VND200 billion (40 percent), while private investors will provide VND 300 billion (60 percent). The city aims to complete legal procedures for the fund this month.
By 2035, the city plans to expand the fund’s size to at least VND5,000 billion ($190.7 million) by attracting additional private capital.
The fund allows total losses not over 50 percent of the government’s capital contribution within an investment cycle. Investment priorities will include high-value technology sectors such as artificial intelligence, big data, blockchain, semiconductor and microchip design, biotechnology, advanced materials, renewable energy, and robotics and automation.
Several major corporations of Vietnam have expressed their willingness in becoming founding shareholders, including Vingroup, VinaCapital, Sovico, Becamex IDC, VNG, CT Group, Hoa Sen Group, Lotte Ventures Vietnam, and FPT.
Currently, most investment capital flowing into Vietnamese startups comes from overseas investors. Public support programs, meanwhile, have largely focused on grants or research funding rather than market-oriented investment mechanisms. The new fund is designed as “seed capital” that helps attract additional private investment into high-growth technology companies. Between 2026 and 2035, the fund aims to invest in 50 to 150 innovative startups and science-technology enterprises, while supporting the commercialization of at least 50 new technologies or products.