HCMC – The HCMC Department of Science and Technology has announced the establishment of the HCMC Venture Capital Investment Fund Joint Stock Company (HCM VIF JSC).
Speaking at the ceremony at the HCMC Innovation Hub (SIHUB) today, April 17, Lam Dinh Thang, director of the Department of Science and Technology, said the development of the proposal to establish the venture capital fund was carried out at a rapid pace, following an extensive and comprehensive consultation process with multiple rounds of in-depth feedback.
“There were discussions focused solely on how to concretize the ‘controlled failure’ mechanism in a way that both complies with regulations and effectively removes capital bottlenecks for innovation,” he said.
According to Thang, on March 4, the People’s Committee of Ho Chi Minh City (HCMC) issued Decision No. 1267 approving the establishment of the venture capital fund.
Shortly thereafter, the Department of Finance worked closely with the Department of Science and Technology to propose an initial capital allocation of VND200 billion from the state budget, while also leading the fund registration process, which was completed within 10 days after the charter was finalized.
The Department of Science and Technology successfully mobilized nine major corporations and investment funds—Sovico, Vingroup, Becamex, VinaCapital, Sun Wah, VNG, CT Group, Hoa Sen, and FPT—to contribute capital and co-found the fund under a joint stock company model.
Thang noted that the fund achieved an “ideal” level of capital mobilization, with VND300 billion, or 60% of total capital, coming from the private sector at the establishment stage.
“As a result, the HCMC Venture Capital Investment Fund Joint Stock Company officially received its business registration certificate on April 10, 2026. This is a completely new model—a local venture capital fund operating under Decree 264 in the form of a joint stock company,” he said.
According to Thang, the establishment of the fund reflects the city’s strong commitment to embracing controlled risk through a “liability exemption” mechanism, aimed at mobilizing and directing private resources toward innovation via a public-private partnership. The fund is expected to unlock capital flows into the startup ecosystem and support the development of the city’s innovation system.
He added that, for the first time, the city has set an overall risk tolerance threshold of up to 50% of the state’s capital in an investment cycle. Investment performance will be assessed based on the overall portfolio rather than individual projects, allowing public capital to act as true “seed capital” willing to take risks alongside businesses.
The “liability exemption” mechanism serves as a legal safeguard enabling fund managers to operate with confidence, helping remove psychological barriers among public officials when working with startups, and protecting them from market risks provided that transparent procedures are followed.
At the event, Nguyen Manh Cuong, vice chairman of the HCMC People’s Committee, said that in 2025, according to a report by international ranking organization StartupBlink, the city, for the first time, entered the top five startup ecosystems in Southeast Asia.
However, despite the strong growth of the startup ecosystem, the city remains concerned about the lack of large-scale domestic venture capital funds and the shortage of seed funding at the incubation stage.
“In the new phase, amid the Fourth Industrial Revolution and the rapid rise of breakthrough technologies such as artificial intelligence (AI), semiconductor chips, blockchain, and big data, HCMC needs a strong financial institution model to unlock its internal innovation potential. Establishing a venture capital fund is one of the key tasks,” Cuong said.
