The Australian Government on May 26 announced a $10 million investment commitment to Do Ventures Fund II, aiming to provide capital for Vietnamese climate-focused businesses and strengthen Vietnam’s climate investment market to attract greater private financing.

The investment, marking the first commitment by the Australian Development Investments (ADI) in Vietnam, will back early- and growth-stage small- and medium-sized enterprises (SMEs) working in areas including clean manufacturing, sustainable consumption and AI-driven climate solutions.

Under the partnership, the ADI will work closely with Do Ventures to enhance climate investment capabilities, including environmental, social and governance (ESG) standards and impact measurement frameworks, helping both the fund and its portfolio companies grow sustainably over time.

Vietnam currently represents around 40% of the ADI’s existing investment portfolio. Through five investment funds, the ADI has supported the growth of 26 small and medium-sized enterprises in Vietnam, helping create 5,781 jobs, improve access to finance for 260,000 small entrepreneurs, and install 19.2 MW of new solar power capacity.