Ho Chi Minh City Venture Investment Joint Stock Company (HCM VIF) has officially opened its operational office four months after its establishment.

Mobilizing Capital via Venture Funds

The fund starts with an initial charter capital of 500 billion VND, comprising 200 billion VND from the state budget and 300 billion VND contributed by corporations and private businesses. It aims to expand to 5,000 billion VND by 2035, serving as a catalyst to leverage broader societal resources.

Financially, the fund tackles public investment bottlenecks through breakthrough mechanisms, including controlled risk tolerance, liability exemption for objective losses, and flexible public-private partnerships.

Mr. Hoang Duc Trung – Director of Ho Chi Minh City Venture Investment Joint Stock Company – sharing the fund's operational and disbursement roadmap at the office opening ceremony. He also serves as Director of VinaCapital Ventures under VinaCapital.

For the 2026–2030 period, HCM VIF plans to invest in 50 to 150 innovative startups and science-technology firms operating in core technologies such as artificial intelligence, semiconductors, biotechnology, renewable energy, and automation.

According to Mr. Hoang Duc Trung, HCM VIF has received around 50 investment proposals from incubators, accelerators, and direct contacts. The fund is scheduled for official operations in September 2027, with 1 to 2 initial disbursements planned for Q4 2026.

Amid global technological shifts, Mr. Trung noted that innovation is becoming a critical growth driver for nations and cities alike. Capitalizing on this requires not only strong ideas and funds, but also management expertise, networking, and long-term partnerships.

"We don't just seek potential investment opportunities—we are committed to building governance capability, linking market resources, facilitating business expansion, and helping Vietnamese tech companies go global," Mr. Trung stated.

Deepening the Capital Market

In an earlier interview with Diễn đàn Doanh nghiệp, Mr. Trung emphasized that for innovative and technology-driven enterprises, the priority is not merely attracting additional capital, but building a robust financial infrastructure for innovation. Investors care about the full investment lifecycle—from growth potential to future exit strategies. Without mature IPO or M&A mechanisms tailored to tech firms, long-term capital inflows will remain constrained.

According to Mr. Hoang Duc Trung, the missing piece in Vietnam's innovation ecosystem is not ideas or talent, but the depth of its capital market. (Photo: T.L)

"Vietnam has a major opportunity to become an attractive regional destination for tech capital. However, realizing this potential requires refining legal frameworks to balance risk management with innovation incentives. Controlled sandboxes, clear rules for new business models, and diversified fundraising channels will enhance the market's appeal to international investors," Mr. Trung noted.

He added that suggestions to establish dedicated stock exchanges or flexible legal corridors for tech firms—possibly within special frameworks like International Financial Centers—are worth exploring as Vietnam builds globally competitive financial hubs. Fast-growing tech companies invest heavily in R&D and require longer timelines to achieve profitability, necessitating a tailored approach compared to traditional sectors.

"In my view, the missing link in Vietnam's innovation ecosystem isn't ideas or human resources, but the depth of the capital market. We have many promising tech ventures and strong international interest, yet we lack mechanisms for scaling capital and providing efficient liquidity for IPOs and exits.

Developing international financial centers and specialized capital market tools for innovation is therefore vital. Well-designed mechanisms can bridge global capital with local tech firms, creating a complete capital lifecycle for the startup ecosystem," he explained.

Looking further ahead, Mr. Trung emphasized that this initiative goes beyond supporting startups. By enabling domestic tech companies to access long-term growth capital and advance core technologies, Vietnam can gradually build supporting industries, develop regionally and globally competitive enterprises, and strengthen its national technological and financial autonomy over the long term.

For HCM VIF's immediate operations, the priority is assembling a professional team, streamlining investment workflows, engaging potential tech firms, and setting the stage for effective disbursements. "We expect this model to create a spillover effect, leveraging private capital far beyond the fund's initial size," he stressed.

In the long run, the fund aims to expand iteratively by demonstrating operational efficiency and attracting institutional investors, scaling capital in line with market demand and deal quality.

Alongside HCM VIF's upcoming disbursements, Ho Chi Minh City is rolling out comprehensive financial policies to create a lifecycle funding pipeline. While state budget and venture capital act as initial "seed money," credit guarantees and interest rate subsidies will support production expansion, paving the way for full market capital once enterprises mature.

Subsidized interest rate programs coordinated by the Ho Chi Minh City Financial Investment State Corporation (HFIC) focus on priority municipal sectors, offering loans up to 200 billion VND per project, funding up to 70% of construction costs and 85% of tech equipment costs, with interest subsidies ranging from 50% to 100% for up to seven years.