The Hanoi Venture Capital Fund (HVCF) has been launched with an initial charter capital of 230 billion VND, designed to provide crucial funding for technology companies and innovative startups in the city. This initiative aims to foster a dynamic ecosystem for innovation and economic growth.
According to Decision 2146/QD-UBND dated 22/4, the city budget will contribute capital in stages, aligning with adjustments to the charter capital. This contribution will not exceed 600 billion VND throughout the pilot period and will remain below 49% of the fund's total capital at any given time. The remaining capital will be provided by investors participating under business cooperation investment contracts.
Additionally, Decision 2147/QD-UBND outlines the fund's operating regulations. The HVCF will operate based on market principles and a public-private partnership model. State capital will play a guiding role, combining with private and international resources to maximize impact.
The fund will invest directly or co-invest with other funds by acquiring shares or capital contributions in enterprises. Each investment is capped at 5% of the fund's total capital, unless approved by the Investors' General Meeting.
Priority sectors for investment include 12 technology groups: digital technology, information and communication technology, biotechnology, new materials, manufacturing and automation, environment and climate change response, smart cities, smart education and healthcare, biomedical technology, financial technology, and high-tech agriculture.
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Technology products at the VIIE 2025 Innovation Exhibition, 10/2025. Photo: *Luu Quy*. |
To access funding, enterprises must meet specific criteria related to innovation capacity, the strength of their founding team, product commercialization potential, and a viable business plan with clear capital recovery potential. The fund gives preference to projects originating from incubators and innovation centers within Hanoi.
The investment process involves several key steps: search, screening, due diligence, decision-making, and disbursement. Following an investment, enterprises will receive ongoing monitoring, support, and periodic evaluations.
Clear mechanisms for risk control and divestment are established. These allow the fund to suspend disbursements or recall capital if misuse is detected. The framework also includes provisions for developing suitable divestment roadmaps.
The HVCF was established under Resolution 30/2025/NQ-HDND. It operates under a business cooperation investment contract model and does not possess legal personality. The fund's operational term is 10 years, with an interim review scheduled after 5 years and a comprehensive pilot summary at the end of the 10-year period.
The organizational structure comprises: the Investors' General Meeting, the Fund Management Council, and the Fund Management Company.
Thai Anh
