The Ministry of Science and Technology is drafting a proposal to establish a National Venture Capital Fund and is seeking feedback from affected stakeholders, including innovative startups, venture capital funds, and fund management organizations. The fund is expected to be established in September.
By 2030, the fund aims to establish an effective public-private partnership mechanism, attract at least VND1.5 trillion in private capital, and help expand Vietnam's venture capital market to US$1.5 billion. It also aims to directly invest or co-invest in startups, contributing to the creation of at least two technology unicorns out of the five targeted under Vietnam's National Strategy on Innovative Startups.
By 2045, the fund is expected to help place Vietnam among the world's top 30 countries for innovation and entrepreneurship, support the development of 100 startups valued at US$100 million or more, and expand the country's venture capital market to US$10 billion.
The establishment of the National Venture Capital Fund marks a strategic milestone in the Government's effort to make science, technology, and innovation the main drivers of economic growth. The fund is intended to serve as a dedicated market-based investment institution that helps lead Vietnam's startup ecosystem.
Rather than competing with private venture capital funds, the National Venture Capital Fund will operate under a complementary model, sharing risks to attract capital from corporations, financial institutions, and international investors into sectors such as deep technology, artificial intelligence (AI), and semiconductors. Up to 75 percent of the fund's capital is expected to be invested through member funds, leveraging the private sector's professional management expertise to diversify risk and expand investment impact.
The proposal also represents a major shift in the legal framework governing state investment. For the first time, the principles of "liability exemption" and "risk acceptance" would be systematically incorporated into legal regulations. Investment performance would be evaluated based on the overall portfolio over a 10-15-year investment cycle rather than on preserving capital for each individual investment.
The mechanism would allow the government to manage capital in line with the nature of venture capital investing by accepting losses on some projects in pursuit of high-growth unicorn companies. At a time when venture capital investment in Vietnam has declined in recent years, the proposed fund is intended not only to provide additional financing but also to help build a sustainable innovation ecosystem.
If effectively designed and implemented, the fund is expected to become a bridge linking the government, businesses, investors, and the startup community, helping foster globally competitive Vietnamese technology companies.
