Ho Chi Minh City has proposed allocating up to VND1.8 trillion (US$69.6 million) in additional public funding to expand its venture capital fund, aiming to increase its charter capital tenfold to at least VND5 trillion by 2035.
The municipal People’s Committee has submitted a draft resolution seeking approval to draw the additional capital from the city’s budget for science, technology and innovation between 2027 and 2035.
Under the proposal, annual state contributions would be limited to VND200 billion (US$7.7 million), while the total allocation over the nine-year period would not exceed VND1.8 trillion.
This will allow for a wider capital expansion strategy that places emphasis on private investment. By the year 2035, the city is determined to get at least VND3 trillion from the private sector and at most VND2 trillion from the government.
The proposed public funding, combined with the government’s initial VND200 billion investment, would bring the state’s total contribution to the planned ceiling.
The Ho Chi Minh City Venture Capital Fund was established under a development scheme approved by the municipal People’s Committee on March 4, 2026.
Private investors supplied VND300 billion, representing 60% of the starting capital, while the state contributed the remaining VND200 billion.
The proposed expansion comes as the city seeks to address a persistent shortage of investment capital for emerging technology businesses, particularly startups in their early stages.
According to the municipal People’s Committee, Ho Chi Minh City has spent nearly a decade developing its startup ecosystem through innovation support programmes, business incubators and technology development facilities.
Despite these initiatives, access to venture capital remains insufficient to meet the financing needs of innovative businesses.
The city sees the fund as an additional source of investment for technology-driven enterprises, especially as artificial intelligence, semiconductor technology, blockchain and big data continue to develop.
The purpose of this fund is to assist high-tech companies, enterprises in science and technology, and startups that work in priority sectors. The operations of this fund will help convert scientific discoveries and technology ideas into commercially valuable products.
The proposed capital increase would also strengthen the fund’s capacity to mobilise private investment while maintaining public financial support for innovation.
For now, the additional state funding remains subject to approval of the draft resolution. If approved, the planned contributions would provide a financial foundation for expanding the fund toward its 2035 capital target.
