Việt Nam issues legal framework for national and local venture capital funds

Việt Nam issues legal framework for national and local venture capital funds

The national fund's charter capital is expected to reach VNĐ2 trillion within five years, combining public investment and private contributions from domestic and foreign investors.

A prototype rescue and cargo-carrying robot dog developed by Duy Tân University in Đà Nẵng. The venture funds will prioritise investments in start-ups with strong growth potential in high-tech and digital transformation. — VNA/VNS Photo

Việt Nam has issued a new legal framework for a national venture capital fund — a long-anticipated initiative to boost investment in innovation, technology and high-growth start-ups.

Under Decree No. 264/2025/NĐ-CP issued on October 15, the Government will allocate at least VNĐ500 billion (nearly US$20 million) from the Ministry of Science and Technology’s development budget as initial capital for the fund.

Its charter capital is expected to reach VNĐ2 trillion within five years, combining public investment and private contributions from domestic and foreign investors.

The national venture capital fund will operate under market principles, accepting controlled risk while ensuring transparency and efficiency. It will prioritise investments in start-ups with strong growth potential in high-tech, digital transformation, green and circular economies and projects that generate positive economic, social and environmental impacts.

Alongside the national fund, provincial-level venture funds will be created to support regional innovation. Each will receive initial capital from local budgets and may attract additional investment from domestic and foreign partners.

The national fund will operate as a multi-member limited liability or joint-stock company under the Enterprise Law, while local funds will also be established as enterprises under the same framework.

The Ministry of Science and Technology will represent the State’s ownership in the fund, while provincial people’s committees will manage local venture capital funds established under the same decree.

Both national and local funds will have independent legal status and be permitted to co-invest with other venture capital funds at home and abroad.

The funds may also hire professional managers, set up advisory and investment appraisal councils and allocate up to 5 per cent of annual post-tax profits to support national and local start-up ecosystems.

Officials said the move is a key step in shaping Việt Nam’s venture capital market, mobilising private investment into innovation and fostering a stronger ecosystem for start-ups in science, technology and sustainable development. 

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