Hanoi to pilot establishment of venture capital fund using state budget

On June 28, with a majority of votes in favor, the National Assembly voted to pass the amended Law on the Capital. Regarding venture capital using the state budget, the Law allows Hanoi to pilot the establishment of a venture capital fund using the state budget to invest capital in high-tech enterprises, science and technology enterprises, and creative startups in the city's key areas of science and technology to support and promote innovation and commercialization of science and technology products.

Venture capital funds are allocated charter capital from the city budget, and are allowed to receive funding and mobilize other legal capital sources in accordance with the provisions of law. The management and use of venture capital funds are carried out according to market principles, accepting the possibility of risk, ensuring publicity, transparency, efficiency, and preventing loss and waste of capital.

Delegates vote to pass the Law (Photo: Quang Vinh)

The City People's Committee shall develop a project to establish a Venture Capital Fund and submit it to the City People's Council for approval, clearly defining the Fund's organizational form of operation; the Fund's operating period; the level of charter capital support from the city budget; investment methods, cooperation objects, and recipients of investment capital; risk assessment and control mechanisms, and responsibilities of agencies, organizations, and individuals in the management and operation of the City's Venture Capital Fund.

The City People's Council approves the project, stipulates the organization and operation mechanism of the Venture Capital Fund, responsibilities for inspection, supervision, and reporting of implementation results. The City People's Committee decides to establish the Fund, promulgates the charter and investment regulations of the Venture Capital Fund.

Source: https://daidoanket.vn/ha-noi-duoc-thi-diem-thanh-lap-quy-dau-tu-mao-hiem-su-dung-ngan-sach-nha-nuoc-10284262.html