$100 million committed to technology businesses in VIFC-HCMC

$100 million committed to technology businesses in VIFC-HCMC

On November 12, the Executive Authority of the Vietnam International Financial Centre in Ho Chi Minh City (VIFC-HCMC) announced a framework cooperation agreement with Touchstone Partners and Ho Chi Minh City Venture Investment Fund JSC to implement an Investment Coordination and Co-investment Programme with a 1:1 matching mechanism.

The Investment Coordination and Co-investment Programme will focus on investing in technology and innovation-driven businesses. Photo: VIFC-HCMC

The programme will have a total investment capacity of up to $100 million, with a cooperation term of five years. It represents a pioneering public-private co-investment model in Vietnam, combining international capital with domestic resources to boost technology development and innovation.

Speaking at the event, Truong Minh Huy Vu, Vice Chairman of Ho Chi Minh City People’s Committee and chairman of the Executive Authority of VIFC-HCMC, said one of the key priorities at present is to find ways to support startups operating in resource-intensive sectors with significant development potential, including AI, core technologies, deep technologies, biotechnology and life sciences.

According to Vu, good ideas needs to be backed by investment capital, implementation capabilities and opportunities to expand into new markets.

“This year, we are introducing a 1:1 matching model, with a view to developing a fund-of-funds mechanism, which will connect investment funds and mobilise additional resources for the startup ecosystem,” Vu said.

Vu explained that the cooperation would go beyond providing capital, extending to joint research, product development, business model development, and the establishment of co-investment mechanisms. This is one of the pioneering efforts to encourage a fund-to-fund investment cooperation model in Vietnam’s venture capital sector.

Ngo Thuy Ngoc Tu, managing director of Touchstone Partners, said the programme aims to connect public and private, domestic, and international partners to support one another in managing investment risks and unlocking additional capital for innovation.

“By combining investment expertise, industry partner networks and a supportive policy framework, we aim to work alongside businesses with the potential to deliver strong financial returns while generating positive and tangible social and environmental impact,” Tu said.

Tran Huu Dung, chairman of HCM VIF JSC, said the cooperation opens up a strategic approach to capital deployment by combining the experience of seasoned technology investors with the industry expertise and networks of HCM VIF’s shareholders.

“Pooling these resources will help improve investment selection, support businesses in commercialising their technologies, and connect them with potential customers and partners,” said Dung.

Under the framework, Touchstone will contribute its network of international investors and strategic partners, together with its experience in identifying, investing in and supporting high-growth technology businesses, strengthening their corporate governance capabilities, and expanding their operations into international markets.

Meanwhile, HCM VIF JSC will provide domestic matching capital, combining international investment capabilities with financial resources and business networks in Vietnam.

For its part, VIFC-HCMC will coordinate the programme and facilitate the implementation of investment structures within the framework of the International Financial Centre. It will also support access to regulatory sandboxes, pilot programmes, licensing procedures, administrative processes, and investment incentives in accordance with applicable regulations.

In addition, VIFC-HCMC will help connect portfolio companies with state management agencies, public-sector entities, infrastructure developers, industrial park operators, and strategic partners. This will create better conditions for new technology solutions to be tested, commercialised, and scaled up.

The programme will focus on investing in technology and innovation-driven businesses across three priority areas including digital transformation and advanced technologies, green transformation and sustainable development, encompassing green economy solutions and measures to mitigate and adapt to climate change, and other innovative technology solutions with the potential to generate positive and sustainable economic, social, and environmental impacts.

VIR