What does Da Nang do to attract and develop venture investment activities?

*Local venture capital funds serve as a launching pad for the development of the innovative startup ecosystem. Photo: VAN HOANG*

Creating a launching pad to attract venture capital.

Decree No. 264/2025/ND-CP on the management mechanism of national and local venture capital funds, effective from October 14, 2025, plays a crucial role in promoting and supporting the development of startups and entrepreneurial projects in the fields of high technology, digital technology, green economy , and circular economy. The formation of national and local venture capital funds will create a new mechanism for the State to attract social capital investment into potential startup projects, supporting the innovation and startup ecosystem.

Mr. Nguyen Van Chuong, Director of the Swiss Entrepreneurship Program (Swiss EP) in Da Nang, commented that the Government's issuance of Decree No. 264 represents a strong shift in state management thinking, from capital preservation to controlled risk acceptance. This is a necessary legal foundation for the formation of venture capital funds operating according to market mechanisms, while also opening up great opportunities for Da Nang and other localities.

However, for the decree to be implemented and have a real impact, localities need to pay attention to three core factors: talent, a sufficiently large problem, and ecosystem linkages. According to Mr. Chuong, if localities do not have mechanisms to attract talent, including founders, scientists , technology experts, and investors, then even with funding, it will be difficult to find projects of sufficient quality to disburse. Mechanisms such as sandboxes, visas for high-quality personnel, and international mentoring networks are prerequisites.

Furthermore, to attract investment, localities must have a sufficiently large-scale solution, such as: tourism payments, port logistics, urban data, AI in public services, renewable energy, etc. These solutions will create "orders" for startups and reasons for funds to participate. Along with that, corporations will act as the first customers and co-financiers of the solution.

Ms. Huynh Thi Cam Huong, representative of the FUNDGO Creative Startup Investment Fund, stated that the participation of funds and investors depends on three main factors. Specifically, depending on their "appetite," investment funds will choose different investments. In addition, the human factor is what investors care about. The commitment, sense of responsibility, and vision of the founder play a crucial role in project development.

“Currently, investment funds are shifting towards ESG (environmental, social, and governance) standards and the 17 Sustainable Development Goals (SDGs) of the United Nations. Therefore, startups/projects need to grasp this to have a suitable development direction. We also expect the projects we invest in to create a positive impact, promoting sustainable development for the locality and society,” Ms. Huong shared.

Strengthening the startup ecosystem

According to Mr. Pham Hong Quat, Director of the Department of Startups and Technology Enterprises (Ministry of Science and Technology), the implementation of a comprehensive database system to gather information on the "health" of startup projects and the "preferences" of investment funds is one of the tasks currently being coordinated by the Department. The database must ensure six elements: accuracy, completeness, cleanliness, viability, consistency, and shared use. This will allow incubators, investment funds, businesses, and regulatory agencies to all access, analyze, and utilize the data through a public-private partnership model.

“A strong startup ecosystem cannot rely solely on the public sector; it also requires the active participation of private incubators, businesses, and investment funds. As mechanisms expand, the ‘playing field’ will become more competitive with the involvement of investment funds and foreign investors, but the important thing is knowing how to turn competitors into partners. Therefore, it is necessary to design a common playing field and have interconnected ecosystems so that everyone moves in the same direction,” Mr. Quoc expressed.

Similarly, Mr. Nguyen Van Chuong also argued that local funds are only effective when they are part of a complete ecosystem, including: public investment funds - private investment funds - incubators - venture builders - angel investor networks and the large enterprise sector.

“Decree No. 264/2025/ND-CP opens a new door, but to step through that door, the important thing is how localities transform capital into measurable, scalable, and sustainable innovation capacity. Da Nang has a great opportunity to become a pioneering locality if it knows how to combine policies, people, businesses, and investors into a unified ecosystem,” Mr. Chuong emphasized.

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