Policy to encourage investors to accompany startups

The establishment of a risk management mechanism, transparency in investment, and provisions on exemption from liability for investment losses (if regulations are complied with) mentioned in the new policy on venture capital will create a safe and attractive environment, encouraging investors to join startups.

This is the opinion of experts at the Workshop on assessing the national innovative startup ecosystem in 2025 and disseminating new policies on venture capital, organized by the Department of Startups and Technology Enterprises ( Ministry of Science and Technology ) in coordination with the Department of Science and Technology of Ho Chi Minh City on November 1.

Mr. Pham Hong Quat, Director of the Department of Startups and Technology Enterprises (Ministry of Science and Technology) discussed new policies on venture capital.

Mr. Pham Hong Quat, Director of the Department of Startups and Technology Enterprises (Ministry of Science and Technology) shared that training and connection programs in the innovative startup ecosystem in Vietnam have been taking place vigorously, but the actual support to create investment efficiency is not high compared to the region. In particular, Vietnam's venture capital investment is behind three countries in the region, but the field of artificial intelligence (AI) is in second place. Therefore, expanding and enhancing investment capacity is a very important orientation.

Previously, venture capital has been discussed a lot but there have been no strong decisions. Now, the policy of Resolution No. 57-NQ/TW, Law on Science, Technology and Innovation, especially Decree No. 264/2025/ND-CP regulating the National Venture Capital Fund and Local Venture Capital Fund - just issued on October 14, 2025 - has clearly shown this content. These regulations emphasize that the Government and local authorities will go hand in hand with the private sector, especially innovative startups.

Conference scene.

Regarding the highlights of Decree No. 264, Mr. Pham Hong Quat said that, along with the "activating" investment capital of the state, both the national and local Funds called on domestic and foreign organizations and individuals to participate. The socialization of the Fund from the very first day of its establishment is a difference compared to many countries where the Fund operates entirely with state capital.

The Fund's investment cycle shall not exceed 10 years, and if the investment has dual-use elements (civilian and security or defense) or is related to strategic technology, it shall not exceed 15 years. The Fund accepts risks but must ensure risk management principles, which allow the total loss arising from investment activities not to exceed 50% of charter capital; in case this threshold is exceeded, the Fund is responsible for restructuring the state capital portion in accordance with the law.

This Decree also clearly stipulates the exemption from liability in case of losses arising. Accordingly, organizations and individuals managing and operating funds are exempt from civil liability and administrative liability related to losses arising from investments if they simultaneously satisfy the following conditions: losses arising from objective risks, not due to intentional errors of organizations and individuals; fully comply with investment principles, internal regulations of the fund and obligations of transparency and honesty in the investment decision-making process; have fully performed the obligations of appraisal, reporting, information transparency and seeking investment approval as prescribed in the Fund Charter.

“These very progressive regulations will help localities feel more secure when choosing people to represent capital, manage and operate the Fund,” Mr. Pham Hong Quat emphasized.

Management agency representatives exchanged information with experts, businesses and investors at the workshop.

The Law on Science, Technology and Innovation and Decree No. 264 of the Government mark a new step forward in the legal framework for venture capital activities in Vietnam. Experts and investors expect these new regulations to be effectively implemented in practice, contributing to the strong development of the innovative startup ecosystem.

From a local perspective, Mr. Lam Dinh Thang, Director of the Department of Science and Technology of Ho Chi Minh City, believes that the Venture Capital Fund will be a new driving force for the development of the city and the country in the coming time. To achieve strategic goals as well as effectively implement new policies, the City is focusing on two major projects: Building the City into an international-class innovation and startup center by 2030; Project to establish the City's Venture Capital Fund. The City hopes to receive comments from experts, businesses, and management agencies to be able to quickly and effectively implement these contents.

Source: https://baotintuc.vn/kinh-te/chinh-sach-khuyen-khich-nha-dau-tu-dong-hanh-cung-khoi-nghiep-20251101171543560.htm