VinaCapital to lead Ho Chi Minh City's new $19.2 million venture fund

VinaCapital to lead Ho Chi Minh City's new $19.2 million venture fund

VinaCapital has been selected to lead the establishment of Ho Chi Minh City's new venture capital fund, a public-private initiative aimed at strengthening the city's startup and innovation ecosystem.

According to a VinaCapital statement from April 18, Ho Chi Minh City Venture Investment Fund JSC was launched on April 17 with initial charter capital of VND500 billion ($19.2 million). The fund was established under a plan approved by the city's People's Committee and will be structured and operated as a joint-stock company.

The company aims to support innovation in science, technology, and advanced industries to drive Vietnam's next phase of growth. The initiative marks the first time the government has established a fund designed to attract capital from both domestic and international investors.

The city government will contribute 40 per cent of the capital, with the remaining capital will be contributed by a group of founding shareholders, consisting of Vietnam’s leading corporations including VinaCapital, Sovico, Vingroup, Becamex, Sunwah, Vinagame, FPT, CT Group, and Hoa Sen Group. VinaCapital is a founding shareholder of the Fund, and Hoang Duc Trung, a Managing Director of VinaCapital, has been appointed the fund’s director.

"The fund will serve as seed capital for the market, guiding capital flows into strategic sectors that require long-term investment horizons," Trung said at the launch event. "We will focus primarily on Series A and Series B funding rounds, which are critical stages for Vietnamese startups to scale up and accelerate their growth."

The fund will prioritise core technologies and genuine green and digital transformation solutions, in line with the Ho Chi Minh City Party Congress's resolution for 2025–2030 and the spirit of Resolution No.57 on science, technology, innovation, and national digital transformation.

"This initiative will serve as a launchpad to realise the aspiration of positioning Ho Chi Minh City as a leading technology hub in the region," Trung said. "I believe that in the future, when we look back at the success stories of leading Vietnamese startups, the imprint of the Ho Chi Minh City Investment Fund will be clearly recognised as a key enabler."

Don Lam, CEO and founding partner of VinaCapital, said the initiative represents an important step in closing the funding gap for Vietnamese startups and accelerating the country's transition towards an innovation-led economy.

"Beyond our capital commitment, VinaCapital's team will apply our decades of investment experience, act as a bridge for international capital, and help ensure the fund operates in line with global best practices," Lam said. "We are honoured to work alongside Ho Chi Minh City authorities and leading private-sector partners to build a professionally managed venture capital platform that supports the city's dynamic startup ecosystem and long-term, sustainable growth."

VinaCapital’s involvement in venture capital investing dates back to 2006, when it launched DFJ VinaCapital in partnership with Silicon Valley-based investor Draper Fisher Jurvetson.

Building on this successful foundation, VinaCapital Ventures was established in 2018 with investment from Mirae Asset and Naver. The firm is currently formalising its third-generation venture investment platform, which will focus on providing growth capital to high-potential Vietnamese and regional startups.

VIR