Vietnam State VC Funds to Boost Private Investments: Insights from Lotte Ventures CEO

Vietnam's new state-backed venture capital funds are poised to invigorate the private investment landscape, according to experts from Lotte Ventures Vietnam.

Pham Ngoc Huy, CEO of Lotte Ventures Vietnam, told TNGlobal that Ho Chi Minh City's VND500 billion fund, while modest against startups raising $40 million rounds, represents a crucial starting point.

Vietnam's VC Funds: Size and Contributions

Hanoi's complementary VND600 billion fund addresses surging market demands seen in Southeast Asia, where rounds exceed $100 million.

Major players like Vingroup committing VND600 billion, Xanh SM with VND30 billion, and VinaCapital VND10 billion signal robust local support.

Building Investor Confidence

Domestic funds serve as a vital 'vote of confidence' for international investors, validating the market and lowering perceived risks.

In 2025, Vietnam recorded 41 VC deals totaling $215 million, per the VinVentures report, underscoring historical growth potential.

Patient Capital for Innovation

Sectors like healthtech and biomedical need 5-10 years of sustained funding, where state 'patient capital' fills the private investor gap.

Mid-sized $10-30 million rounds remain scarce, forcing early foreign reliance with pressures for rapid scaling beyond Vietnam's borders.

Despite a 100 million population, Vietnam's $5,000 per capita income highlights the need for startups to eye larger regional markets.

Looking forward, these initiatives could attract more private and global capital, fostering a thriving VC ecosystem.

This partnership between state and private sectors promises to elevate Vietnam's startups on the world stage.