ho chi minh city authorities have approved a plan to establish a venture capital fund designed to boost technology startups, commercialize research, and accelerate innovation in key strategic industries. The municipal Department of Science and Technology says the fund will operate as Ho Chi Minh City Venture Capital Fund JSC and is expected to launch with an initial charter capital of VND500 billion (about $19. 1 million). The city is working to complete the legal procedures for the fund this month, the department said.
Fund structure: public seed capital with majority private backing
The Department of Science and Technology outlined a public-private structure for the new vehicle: the municipal government is set to contribute VND200 billion, equal to 40 percent of the initial charter capital, while private investors are expected to provide VND300 billion, or 60 percent.
Officials framed the fund as a market-oriented mechanism intended to act as “seed capital” for high-growth technology companies, with the explicit aim of drawing more private participation into startup financing. The department noted that most investment capital currently flowing into Vietnamese startups comes from overseas investors, while public support programs have largely centered on grants or research funding rather than investment mechanisms tied to commercialization.
Under the approved plan, the fund will allow total losses not exceeding 50 percent of the government’s capital contribution within an investment cycle, the department said.
Priority sectors and scale-up target through 2035 in Ho Chi Minh City
Investment priorities listed by the municipal Department of Science and Technology focus on high-value technology sectors, including artificial intelligence, big data, blockchain, semiconductor and microchip design, biotechnology, advanced materials, renewable energy, and robotics and automation.
Looking longer term, authorities set a scale-up target: by 2035, the city plans to expand the fund’s size to at least VND5, 000 billion (about $190. 7 million) by attracting additional private capital.
Several major corporations in Vietnam have expressed willingness to become founding shareholders, the department said. The organizations named were Vingroup, VinaCapital, Sovico, Becamex IDC, VNG, CT Group, Hoa Sen Group, Lotte Ventures Vietnam, and FPT.
Immediate reactions from city science officials and stated goals
The municipal Department of Science and Technology said the venture capital plan is aimed at boosting technology startups, commercializing research, and accelerating innovation in strategic industries. The department also described the fund’s role as “seed capital” intended to help 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, the department said.
Quick context: shifting from grants to investment mechanisms
City officials have emphasized that public support has often taken the form of grants or research funding, while startup investment has relied heavily on overseas capital. The new fund is positioned as an attempt to add a market-oriented, locally anchored investment tool to that mix.
What’s next for ho chi minh city
The next milestone is procedural: the city aims to complete the legal steps for the fund this month, the municipal Department of Science and Technology said. Beyond that, execution will center on launching Ho Chi Minh City Venture Capital Fund JSC with the planned public-private split and moving toward the longer-term expansion goal through 2035, while directing capital to the listed priority technology sectors and the 2026–2035 investment targets.
