Ho Chi Minh City to Launch $191M VC Fund Boosting AI, Biotech, and Tech Startups in Vietnam
Ho Chi Minh City's municipal government has announced the establishment of the Ho Chi Minh City Venture Capital Fund JSC, aiming for a total size of nearly $191 million to propel tech innovation.
The fund kicks off with an initial charter capital of VND 500 billion ($19.1 million), split 40% from the government and 60% from private investors.
Major Investors and Ambitious Growth
Leading corporations such as Vingroup, FPT, VinaCapital, Sovico, Becamex IDC, VNG, CT Group, Hoa Sen Group, and Lotte Ventures Vietnam are keen to join as founding shareholders.
The initiative plans to scale the fund to at least VND 5,000 billion ($190.7 million) by 2035 through influxes of additional private capital.
Targeting Cutting-Edge Tech Sectors
Focus areas include high-value fields like artificial intelligence, big data, blockchain, semiconductor design, biotechnology, advanced materials, renewable energy, and robotics.
Acting as crucial seed capital, it will nurture technology startups, commercialize research, and accelerate breakthroughs in strategic industries.
Timeline and Investment Targets
Legal formalities are slated for completion this March 2026, paving the way for immediate operations.
Over 2026-2035, the fund targets investments in 50 to 150 innovative startups and sci-tech enterprises.
It also eyes supporting the market launch of at least 50 novel technologies or products by 2035.
Transforming Vietnam's Startup Landscape
This move shifts Vietnam's public support from grants to a dynamic, market-driven VC model amid heavy overseas funding reliance.
By fostering local investment, it promises reduced foreign dependency and heightened economic momentum through homegrown tech success.
With tolerance for losses up to 50% of government stakes, the fund balances risks to unlock sustained growth in Vietnam's vibrant innovation ecosystem.
