An imbalance in capital sources, with foreign capital dominating Vietnam’s startup market, is pushing startups toward establishing holding companies overseas to more easily receive funding, said Bui Thanh Do, Founder and CEO of ThinkZone Ventures.

As a result, Vietnam faces disadvantages of losing tax revenue losses and of intellectual assets from Vietnam-originated business, Do said at an event on consulting for the national venture capital fund on Monday.

Do said building and operating a national venture capital fund is an urgent task to create a stable foundation for domestic capital and retain high-value technology assets within the country. He noted that in April 2026, Ho Chi Minh City and Hanoi already established local venture funds worth VND500 billion ($19 million) and VND230 billion, respectively, The funds can provide practical data for the national-level fund, he added.

ThinkZone proposed three core directions for the national fund. First, the state should act as catalytic capital that leads the market rather than directly selecting startups. The fund should prioritize a fund-of-funds model or co-investment mechanisms with the private sector, transferring commercial investment decisions to professional private fund managers. This approach is similar to those of Singapore and Kazakhstan.

Second, given that technology investment requires 10 to 15 years to demonstrate value and carries high risk, the fund’s governance should evaluate performance across the entire long-term portfolio cycle rather than scrutinizing capital preservation on individual deals.

Third, ThinkZone called for clear implementation guidance on tax incentives, including procedures to certify a recipient company as an innovative startup and procedures for share transfer declarations required for investors to receive tax exemptions. ThinkZone also voiced support for the Ministry’s plan to study a specialized stock exchange for innovative startups to create a transparent exit channel for private capital.

Minister of Science and Technology Vu Hai Quan said the fund’s objective is not profit maximization but to promote the ecosystem and activate the venture capital market. The ministry would compile recommendations to build a specific mechanism for submission to the government.

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