Major corporations back Ho Chi Minh City Venture Capital Fund

Several large regional and Vietnamese corporations have become founding shareholders of the Ho Chi Minh City Venture Capital Fund, launched last Friday as part of efforts to boost early-stage financing for startups.

The list of shareholders includes Sovico Group, Vingroup, Becamex IDC, VinaCapital, Sunwah Group, VNG Corporation, CT Group, Hoa Sen Group, and FPT Corporation.

Hoang Duc Trung, director of VinaCapital Ventures, has been appointed to lead the new fund.

Ho Chi Minh City Venture Capital Fund Joint Stock Company (HCM VIF JSC) was officially launched by the city’s Department of Science and Technology at the Saigon Innovation Hub (SIHUB).

With backing from major corporations, the fund is expected to benefit not only from strong financial resources but also from international-standard governance, broad market networks, and deep experience in the startup ecosystem.

Structured as a joint stock company under Vietnam’s Enterprise Law, the fund is designed to ensure transparency and autonomy in governance and investment decisions. It has an initial charter capital of VND500 billion ($19 million), with the city contributing 40% from its budget (VND200 billion) and the remainder mobilized from private investors, businesses and financial institutions.

The structure reflects a public-private partnership model, with state capital intended to build trust and catalyze the fund, while private capital will play a key role in long-term expansion.

By 2035, the city aims to increase the fund’s charter capital to at least VND5 trillion ($189.88 million), with private capital accounting for a minimum of 60%. The fund will prioritize investments in innovative startups, science and technology enterprises, and digital industrial firms with high growth potential.

Target sectors include artificial intelligence, big data, semiconductor technology, biotechnology, green technology, automation and robotics, as well as digital economy and circular economy solutions aligned with the city’s sustainable development goals.

Nguyen Manh Cuong, Vice Chairman of the municipal People’s Committee, said the fund marked a “breakthrough solution” to early-stage funding challenges and a milestone in implementing national strategies on science, technology, innovation and digital transformation.

“The city is committed to creating favourable conditions for the fund to operate on market principles in a transparent and efficient manner, becoming a magnet for social capital into the startup ecosystem,” he said.

From an investor perspective, Trung said the fund aims to grow from VND500 billion ($19 million) initially to VND5 trillion ($190 million) over the next decade.

“We expect each Vietnamese dong invested by the fund to attract an additional three to five dong from private and international investors, focusing on promising startups in core technologies, green solutions, and digital transformation,” he said.

The fund will focus on Series A and B funding rounds, where many Vietnamese startups face capital shortages to scale up. Beyond financing, it will provide governance support, connect startups with expert and investor networks, and help expand into domestic and international markets.

Following the launch, HCM VIF JSC will complete its organizational structure and standardize operations, including holding its first general shareholders’ meeting and approving its charter and investment procedures.

The fund will also work with the Department of Science and Technology and startup support centers to receive project applications, expand international cooperation, and develop co-investment mechanisms with domestic and foreign funds.

In the coming period, it plans to announce investment criteria, priority sectors, application procedures, and capital deployment plans, alongside organizing programs and competitions to identify high-potential startups contributing to the city’s socio-economic development.

Vietnam’s venture capital market has grown significantly over the past decade but remains modest compared to regional peers. After peaking at about $1.4 billion in 2021, investment has stabilized at around $500 million to $600 million annually in recent years.

Despite an ecosystem of roughly 4,000 startups and several unicorns, most funding still comes from foreign investors, while the number and scale of domestically registered venture funds remain limited.