The Australian Government has committed up to $10 million to Fund II of Vietnam’s Do Ventures , in order to support climate-focused businesses in Vietnam and strengthening the country’s climate investment market.

Do Ventures, an investment firm focused on early-stage Vietnamese startups, was established in 2020 with its $50-million Fund I.

In a statement on Tuesday, the Australian Embassy to Vietnam said the latest funding will support early- and growth-stage small and medium enterprises working in areas linked to Vietnam’s energy transition and climate adaptation, including manufacturing, sustainable consumption and AI-enabled climate solutions. The investment marks the first commitment by Australian Development Investments under its Vietnam investment window.

The embassy noted the investment in Do Ventures, a woman-led venture capital firm, can help address gender disparities in the private equity and venture capital sector, where women account for 11 percent of senior investment professionals in emerging markets.

According to the Australian Government, Vietnam currently represents 40 percent of the Australian Development Investments (ADI)’s portfolio. Through five investment funds, the ADI has supported 26 Vietnam-based SMEs and 5,781 jobs, improved access to finance for 260,000 small entrepreneurs, and jointly installed 19.2 MW of new solar capacity.

Australian Ambassador to Vietnam Gillian Bird highlighted the commitment would help attract greater private investment into climate solutions in Vietnam.

Vy Le, General Partner of Do Ventures, said the funding would support the firm’s efforts to expand its portfolio of climate investments and back Vietnamese startups developing sustainable technologies and climate-related solutions.

The ADI said it will also work with Do Ventures to strengthen its climate investment capabilities, including environmental, social and governance practices and impact measurement. The ADI is the Australian Government’s AU$250 million ($179.3 million) impact investment fund focused on mobilizing private investment and supporting climate and gender outcomes.

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