The Provincial People's Committee is the agency representing the owner of state capital at local venture capital funds.

This Decree provides for the establishment, organizational structure, operation, management, capital proportion structure from the state budget, capital use, supervision mechanism for the National Venture Capital Fund, local venture capital funds and other contents specified in Article 40 of the Law on Science , Technology and Innovation.

Decree No. 264/2025/ND-CP regulating national and local venture capital funds.

Fund operating principles

According to the regulations, the fund operates on the following principles:

Venture capital is an investment activity through contributing capital to establish, purchasing shares, capital contributions in innovative start-up enterprises or establishing, contributing capital to venture capital funds, innovative start-up investment funds.

1- Comply with Vietnamese laws and international treaties to which Vietnam is a member; comply with the laws of the country and territory when investing abroad.

2- Operate according to market principles, accept controlled risks, ensure publicity, transparency, efficiency and information security.

3- Support the innovative startup ecosystem, prioritizing investment in innovative startup businesses and projects with high growth potential in the fields of high technology, digital technology, strategic technology, technology that encourages transfer, green economy , circular economy, sustainable development, creating positive impacts on the local and national economy, society, and environment.

Legal status of the fund

The national venture capital fund is established and operates under the model of a limited liability company with two or more members or a joint stock company in accordance with the provisions of the Law on Enterprises.

Local venture capital funds are established and operate in the form of enterprises under the provisions of the Law on Enterprises.

National venture capital funds and local venture capital funds have legal status, seals, and are allowed to open accounts at the State Treasury and domestic and foreign banks in accordance with relevant legal provisions.

Organizational structure and powers of the fund

According to regulations, the organizational structure and powers of the fund are stipulated in the Fund Charter (Company Charter) according to the provisions of the Law on Enterprises; the rights, responsibilities, salaries, remunerations, bonuses and other benefits of the representative of the State capital portion at the fund are implemented according to the provisions of law on management and investment of State capital in enterprises.

The Ministry of Science and Technology is the agency representing the owner of state capital at the National Venture Capital Fund, and is responsible for appointing a representative of state capital at the fund.

The People's Committee at the provincial level is the agency representing the owner of state capital at the local venture capital fund, and is responsible for appointing a representative of state capital at the fund.

The Fund is allowed to cooperate with and hire domestic and foreign professional organizations and individuals to manage and operate the Fund's activities according to the provisions of the Fund's Charter.

The fund establishes advisory councils and investment appraisal councils to support the fund's investment activities.

Objectives, functions and tasks of the fund

The fund's objective is to invest and attract investment resources into innovative startups and innovative startup projects with breakthrough growth potential, capable of solving local, national and international economic, social and environmental challenges; supporting and promoting the development of the national and local innovative startup ecosystem and the venture capital market in Vietnam to serve the country's socio-economic development and international integration.

Functions and tasks of the National Venture Capital Fund: Contribute capital to establish, purchase shares, purchase capital contributions in domestic and foreign innovative start-up enterprises; contribute capital to co-invest with other domestic and foreign venture capital funds and innovative start-up investment funds to establish, purchase shares, purchase capital contributions in innovative start-up enterprises; establish and contribute capital to other domestic and foreign venture capital funds and innovative start-up investment funds to carry out venture investment and support the national innovative start-up ecosystem.

Functions and tasks of local venture capital funds: Contribute capital to establish, purchase shares, and purchase capital contributions in domestic innovative start-up enterprises; contribute capital to co-invest with other domestic venture capital funds and innovative start-up investment funds to establish, purchase shares, and purchase capital contributions in innovative start-up enterprises and support the local innovative start-up ecosystem.

Fund resources

Decree stipulating that for the National Venture Capital Fund, the Fund's charter capital includes:

- The state capital is provided from the development investment expenditure estimate of the Ministry of Science and Technology, provided once from the establishment of the Fund, with the initial capital provided from the state budget being at least 500 billion VND.

- Capital contributions of domestic and foreign organizations and individuals (if any) shall be made in accordance with the provisions of law and the Fund Charter.

The charter capital of the National Venture Capital Fund established in the first 5 years must reach at least VND2,000 billion, based on state capital allocated from the state budget and capital mobilized from organizations and individuals.

For local venture capital funds, the fund's charter capital includes:

- The state capital portion is allocated from the local development investment expenditure estimate, allocated once right from the fund's establishment, with the initial capital portion allocated from the state budget decided by the Provincial People's Committee.

- Capital contributions from domestic and foreign organizations and individuals (if any) shall be made in accordance with the provisions of law and the Fund's Charter.

Fund revenue sources

The fund's revenue sources include: Profits from investment activities according to the fund's charter; interest on bank deposits for temporarily idle capital between investment cycles, including the fund's charter capital and mobilized capital; grants, aids, and legal voluntary contributions from domestic and foreign organizations and individuals; revenue from divestment and liquidation of the fund's assets and other legal revenues according to the provisions of law and the fund's charter.

Fund operating expenses

The fund's operating expenses include: Management, operation and other activities directly serving the fund's operations; expenses to support the development of the national and local innovative startup ecosystem with a maximum of 5% of the fund's annual after-tax profit; expenses to set up a venture capital risk reserve fund from the fund's annual operating capital, including charter capital and mobilized capital, according to the Fund's Charter and other legal expenses according to the law and the Fund's Charter.

Fund investment expenditure

Investment expenses of the fund include: Expenses for contributing capital to establish innovative start-up enterprises; expenses for purchasing shares or capital contributions at innovative start-up enterprises; expenses for contributing capital to venture capital funds or other innovative start-up investment funds as prescribed by law.

According to Government Newspaper

• See source link: https://baochinhphu.vn/quy-dinh-ve-quy-dau-tu-mao-hiem-quoc-gia-va-dia-phuong-102251015214226713.htm

Source: https://baobacninhtv.vn/ubnd-cap-tinh-la-co-quan-dai-dien-chu-so-huu-phan-von-nha-nuoc-tai-quy-dau-tu-mao-hiem-cua-dia-phuong-postid428971.bbg