Key Takeaways
- • Ho Chi Minh City's People's Committee has proposed allocating up to VND1.8 trillion (US$69.6 million) in additional public funding to its venture capital fund between 2027 and 2035.
- • The proposal aims to raise the fund's charter capital tenfold to at least VND5 trillion by 2035, with a target of at least VND3 trillion from private sources and at most VND2 trillion from the government.
- • Annual state contributions would be capped at VND200 billion (US$7.7 million), and the draft resolution remains subject to approval.
- • The fund targets high-tech companies and startups in priority sectors such as artificial intelligence, semiconductors, blockchain and big data.
Summary
Ho Chi Minh City has submitted a draft resolution seeking approval to draw up to VND1.8 trillion (US$69.6 million) from its budget for science, technology and innovation between 2027 and 2035, according to the municipal People's Committee. The additional funding would expand the Ho Chi Minh City Venture Capital Fund's charter capital tenfold, to at least VND5 trillion by 2035.
Under the proposal, annual state contributions would be limited to VND200 billion (US$7.7 million), with total allocations over the nine-year period not exceeding VND1.8 trillion. The city aims to secure at least VND3 trillion from the private sector and no more than VND2 trillion from the government by 2035. Combined with the initial VND200 billion state investment, the public contribution would reach the planned ceiling.
The fund was established under a development scheme approved by the municipal People's Committee on March 4, 2026. Private investors supplied VND300 billion, or 60% of starting capital, while the state contributed the remaining VND200 billion.
The expansion addresses what the city describes as a persistent shortage of investment capital for emerging technology businesses, particularly early-stage startups. According to the People's Committee, Ho Chi Minh City has spent nearly a decade building its startup ecosystem through innovation support programmes, business incubators and technology development facilities, but access to venture capital remains insufficient to meet the financing needs of innovative businesses.
The fund is intended to support high-tech companies, science and technology enterprises, and startups in priority sectors, helping convert scientific discoveries and technology ideas into commercially valuable products. The additional state funding remains subject to approval of the draft resolution.
Under the proposal, annual state contributions would be limited to VND200 billion (US$7.7 million), with total allocations over the nine-year period not exceeding VND1.8 trillion. The city aims to secure at least VND3 trillion from the private sector and no more than VND2 trillion from the government by 2035. Combined with the initial VND200 billion state investment, the public contribution would reach the planned ceiling.
The fund was established under a development scheme approved by the municipal People's Committee on March 4, 2026. Private investors supplied VND300 billion, or 60% of starting capital, while the state contributed the remaining VND200 billion.
The expansion addresses what the city describes as a persistent shortage of investment capital for emerging technology businesses, particularly early-stage startups. According to the People's Committee, Ho Chi Minh City has spent nearly a decade building its startup ecosystem through innovation support programmes, business incubators and technology development facilities, but access to venture capital remains insufficient to meet the financing needs of innovative businesses.
The fund is intended to support high-tech companies, science and technology enterprises, and startups in priority sectors, helping convert scientific discoveries and technology ideas into commercially valuable products. The additional state funding remains subject to approval of the draft resolution.
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