Ho Chi Minh City has successfully mobilized nine major corporations, including Sovico, Vingroup, Becamex, VinaCapital, Sun Wah, VNG, CT Group, Hoa Sen, and FPT, to contribute capital as founding shareholders of the city’s venture capital fund under a joint-stock company model.
On the afternoon of April 17, at the Saigon Innovation Hub (SIHUB), the Ho Chi Minh City Department of Science and Technology held a ceremony to announce the establishment of the Ho Chi Minh City Venture Capital Investment Fund Joint Stock Company (HCM VIF JSC).
Attending the ceremony were Mr. Tran Luu Quang, Politburo Member and Secretary of the Ho Chi Minh City Party Committee; Prof. Dr. Nguyen Thi Thanh Mai, Member of the Party Central Committee and President of Vietnam National University-HCMC; Mr. Nguyen Manh Cuong, Alternate Member of the Party Central Committee and Vice Chairman of the Ho Chi Minh City People’s Committee; Mr. Duong Anh Duc, Head of the Propaganda and Mass Mobilization Commission of the City Party Committee; among others.
Ho Chi Minh City Party Secretary Tran Luu Quang presents flowers to congratulate the founding shareholders of the Ho Chi Minh City Venture Capital Fund. Photo: Minh Hoang
First-time acceptance of 50% risk and liability exemption mechanism
Mr. Lam Dinh Thang, Director of the Ho Chi Minh City Department of Science and Technology, stated that the development of the venture capital fund proposal was carried out at an accelerated pace, involving extensive and comprehensive consultations with multiple rounds of expert feedback.
“There were discussions solely focused on concretizing the concept of ‘controlled failure’ in a way that both complies with legal regulations and effectively removes capital bottlenecks for innovation,” he shared.
Mr. Lam Đinh Thang, Director of the Ho Chi Minh City Department of Science and Technology, delivers a speech at the ceremony. Photo: Minh Hoang
According to Mr. Thang, on March 4, the Ho Chi Minh City People’s Committee officially issued Decision No. 1267 approving the establishment of the venture capital fund.
Immediately afterward, the Department of Finance closely coordinated with the Department of Science and Technology to propose an initial budget allocation of VND 200 billion from the state budget, while also guiding enterprise registration procedures, which were completed within just 10 days after finalizing the charter.
The Department of Science and Technology successfully attracted nine leading corporations, enterprises, and investment funds such asSovico, Vingroup, Becamex, VinaCapital, Sun Wah, VNG, CT Group, Hoa Sen and FPT, to contribute capital as founding shareholders of the fund.
Ho Chi Minh City Party Secretary Tran Luu Quang (far right) attends the announcement ceremony. Photo: Minh Hoang
Mr. Thang noted that this collective effort enabled the fund to achieve an ideal social capital mobilization ratio, with VND 300 billion (accounting for 60%) coming from the private sector right from the establishment phase.
“As a result, HCM VIF JSC officially received its enterprise registration certificate on April 10, 2026,” he said, adding that this is a completely new model, a local venture capital fund operating under Decree 264 in the form of a joint-stock company.
He emphasized that the establishment of the fund reflects the city’s strong determination to take controlled risks under a “liability exemption” mechanism, helping mobilize and lead social resources for innovation through a public–private partnership model, unlocking capital flows into the startup ecosystem, and supporting the development of the city’s innovation system.
Prof. Dr. Nguyen Thi Thanh Mai, President of Vietnam National University – Ho Chi Minh City (far left), attends the ceremony. Photo: Minh Hoang
Notably, for the first time, an overall risk threshold of up to 50% of the state capital is established for an investment cycle. Investment performance will be evaluated on a portfolio basis rather than on individual projects, allowing state capital to truly act as risk-taking seed capital alongside enterprises.
The “liability exemption” mechanism serves as a legal safeguard, empowering fund managers to confidently take risks, removing psychological barriers for officials when supporting startups, and protecting them from objective market risks provided that transparent procedures are followed.
With a vision to reach VND 5 trillion by 2035, the fund will focus on strategic core technologies such as artificial intelligence, semiconductor microchips, biotechnology, renewable energy, and robotics automation. It also aims to invest in 50–150 innovative startups, positioning Ho Chi Minh City as a “magnet” for international venture capital flows.
Mr. Nguyen Manh Cuong, Vice Chairman of the Ho Chi Minh City People’s Committee, and Mr. Lam Đinh Thang, Director of the Department of Science and Technology, present enterprise registration certificates to the shareholders. Photo: Minh Hoang
Creating the most favorable conditions for capital allocation
Speaking at the ceremony, Mr. Nguyen Manh Cuong, Vice Chairman of the Ho Chi Minh City People’s Committee, shared that in 2025, according to StartupBlink, Ho Chi Minh City entered the top 5 startup ecosystems in Southeast Asia for the first time.
However, behind this strong growth lies a persistent concern: the lack of large-scale domestic venture capital funds and the shortage of early-stage seed funding.
Central and city leaders, shareholders, and business representatives pose for a commemorative photo. Photo: Minh Hoang
“In the new phase, amid the Fourth Industrial Revolution and the rapid rise of breakthrough technologies such as AI, semiconductors, blockchain, and big data, the city needs a strong financial model to unlock its innovation potential,” he stated, adding that establishing the venture capital fund is one of the key solutions.
He emphasized that the participation of leading corporations, investment funds, and tech unicorns as founding shareholders is expected to bring international-standard governance, extensive market networks, and deep insights into the innovation ecosystem.
These enterprises are pioneering the development of the domestic venture capital market alongside the city, sharing both benefits and risks to nurture future technology enterprises.
Mr. Nguyan Manh Cuong, Vice Chairman of the Ho Chi Minh City People’s Committee, delivers remarks at the ceremony. Photo: Minh Hoang
Mr. Nguyan Manh Cuong, Vice Chairman affirmed that city leaders are committed to continuing to support and facilitate capital allocation in accordance with the approved plan, while strengthening incubation support and commercialization linkages to foster high-potential startups for effective investment.
He also urged relevant departments to closely monitor, guide, and promptly resolve any issues arising during the fund’s operation.
“Together, we aim to build a healthy startup investment ecosystem and position Ho Chi Minh City as a leading innovation hub, attracting entrepreneurs and investors both domestically and internationally,” he said.
Mr. Hoang Đuc Trung, Director of VinaCapital Ventures, noted that the fund has set an ambitious yet exciting goal of reaching VND 500 billion in its first year and VND 5 trillion within 10 years.
According to him, the initial VND 500 billion will serve as a strong catalyst. “Our goal is that every dollar invested will attract an additional 3 to 5 dollars from private and international investors,” he said, adding that the fund will focus on selecting the most promising startups rather than making scattered investments, prioritizing core technologies, green solutions, and meaningful digital transformation.
Mr. Hoang Đuc Trung, Director of VinaCapital Ventures, emphasized that the Ho Chi Minh City Venture Capital Fund has set an ambitious yet compelling target of reaching VND 500 billion in its first year and VND 5 trillion within 10 years.
According to Mr. Trung, the initial VND 500 billion will serve as a strong catalyst to generate significant momentum. “Our goal is that every đồng invested will act as a magnet, attracting at least an additional 3 to 5 đồng from private and international investment funds,” he said. He also noted that the fund will avoid scattered, small-scale investments and instead focus on selecting the most promising startups from incubators across the city, prioritizing core technologies, green solutions, and meaningful digital transformation.