Venture capital funds: State-led initiatives and "seed capital," along with private sector participation, drive innovation.

In Hanoi, within the framework of the National Innovation and Startup Festival 2025, a forum on investment in innovative startups took place. The event discussed the implementation of Decree 264/2025/ND-CP on national and local venture capital funds; updated capital trends; expanded cooperation; and proposed public-private partnership models suitable for Vietnam.

Báo Nhân dân•16/12/2025

Speakers at the panel discussion themed "Promoting tripartite cooperation: International financial institutions - State-owned venture capital - Private venture capital for innovative startups in Vietnam".

The state acts as a facilitator and co-investor to pave the way for core technologies.

The forum aims to clarify the mechanisms and methods for effectively implementing Decree No. 264/2025/ND-CP, while creating a space for policy dialogue between management agencies, localities, international financial organizations, and the private sector on mobilizing resources for innovative startups, strengthening international cooperation, and developing tripartite cooperation models.

Speaking at the Forum, Deputy Minister of Science and Technology Hoang Minh emphasized that innovation has become the foundation for the development of science and technology in most countries; with the goal of double-digit growth, Vietnam "has no other choice" but to rely on science, technology, and innovation.

Against the backdrop of declining global venture capital flows, the establishment of national and local venture capital funds under Decree No. 264/2025/ND-CP is of particular importance: for the first time, Vietnam has a fund model at the national and local levels, allowing for long-term investments, investments in other funds, and even investments abroad to gain early access to new technologies.

Deputy Minister Hoang Minh affirmed that the fund mechanism conveys a strong message from the Government : the State not only supports through policies but also directly participates in co-investment with the private sector, accepting a higher level of risk to focus on innovation, core technologies, and green technologies; the State plays a facilitating role and provides "seed capital," while the private sector leads by market opportunities and enhances investment efficiency.

Deputy Minister of Science and Technology Hoang Minh delivered the concluding remarks at the Forum.

Pilot program with a 1.2 trillion VND fund to promote international-private sector cooperation.

In his opening remarks, Mr. Truong Viet Dung, Vice Chairman of the Hanoi People's Committee, stated that Hanoi has been entrusted with the pioneering mission of leading, experimenting, and guiding innovative mechanisms. Based on the amended Capital City Law, Hanoi has issued six resolutions covering key components of the innovation ecosystem: from controlled testing mechanisms (sandboxes) for new technologies; science and technology policies based on project-based ordering and contracting; policies supporting the innovation ecosystem with support up to 70% of expert and consulting fees; to the establishment of the Hanoi Technology Exchange to support testing, promotion, valuation, and intellectual property protection.

Notably, Hanoi is establishing the Hanoi Venture Capital Fund with a maximum size of VND 1,200 billion, with the State budget contributing up to 49% as "seed capital"; within the framework of Decree No. 264/2025/ND-CP issued by the Government on October 14, 2025, Hanoi is the pioneering locality to pilot this fund model to accumulate experience for standardization and replication.

The forum also featured presentations on trends in capital flow restructuring and investment cooperation models. David Lewis, Chairman and CEO of Energy Capital Vietnam (ECV), analyzed the shift in capital flows associated with the digital economy, deep technology, energy, and smart supply chains; Samuel Ang, a senior expert at the Asian Development Bank (ADB), shared experiences in operating co-investment mechanisms such as matching funds and fund-of-funds; and Juhern Kim, Head Representative of the Global Green Growth Institute (GGGI) in Vietnam, emphasized venture capital linked to green growth and the circular economy. From the domestic private sector, Le Thanh Nam, Investment Director of Touchstone Partners, highlighted the level of readiness for co-investment, from technology assessment to supporting startups in expanding their markets.

Concluding the Forum, Deputy Minister Hoang Minh stated that Vietnam's startup ecosystem has over 4,000 startups, 200 intermediary organizations, and 2 technology unicorns, but the scale of businesses and capital flows remain modest. The Ministry of Science and Technology will incorporate international opinions and experiences to further improve institutions and policy tools, promoting the sustainable development and deep integration of the ecosystem.

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