Ho Chi Minh City Launches 500 Billion VND Venture Capital Fund, Targets 5 Trillion VND by 2035

Ho Chi Minh City, Vietnam's economic powerhouse, has taken a significant step forward in fostering its innovation ecosystem with the establishment of the Ho Chi Minh City Venture Capital Fund (HCM VIF JSC). This initiative, launched on April 17, represents a groundbreaking solution to the persistent challenge of early-stage funding for startups, a crucial element for realizing the city's ambitious goals in science, technology, and digital transformation.

The fund's initial capital of 500 billion VND, with 40% contributed by the city budget and the remainder from private investors, exemplifies a robust public-private partnership. This model leverages state funding to build confidence and initiate operations, while relying on social resources for long-term expansion. The city's commitment to reaching 5 trillion VND by 2035, with at least 60% from non-state sources, underscores its dedication to mobilizing private capital for innovation.

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The establishment of the Ho Chi Minh City Venture Capital Company is a breakthrough solution for early-stage investment capital, marking a historic step in concretizing the Central Party's major policies on science, technology, innovation, and digital transformation.

As reported by Tuổi Trẻ, a leading Vietnamese newspaper, the fund's strategic focus on Series A and B funding rounds targets startups in critical sectors such as artificial intelligence, big data, semiconductors, biotechnology, and green technology. This targeted approach signals Ho Chi Minh City's intent to become a regional hub for cutting-edge industries, aligning with national strategies for technological advancement and sustainable development.

From a local perspective, the creation of HCM VIF is not just a financial mechanism but a testament to the city's forward-thinking leadership. It demonstrates a willingness to embrace new models, such as allowing state capital to 'accept controlled risks,' to catalyze private investment and support the burgeoning startup scene. This contrasts with a more cautious approach often seen in traditional state-led development, highlighting Vietnam's dynamic economic evolution. The fund's operational principles of market-based, transparent, and efficient management, as emphasized by city officials, aim to attract both domestic and international talent and capital, positioning Ho Chi Minh City as a magnet for innovation.

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This is a completely new financial model in the locality, allowing state capital to 'accept controlled risks,' thereby effectively mobilizing and leading social resources to accompany the city's innovative startup ecosystem.