Ho Chi Minh City proposes adding VND 1,800 billion to venture capital fund

What happened

The city government sent a proposal to the City People's Council. The council will review it at a special session on October 29-30. The plan is to add up to 200 billion dong a year for 9 years, depending on the city's budget and the company's plan to raise capital.

Key numbers

• Maximum new state funding: 1,800 billion dong, paid as up to 200 billion dong per year over 9 years.
• The fund started with 500 billion dong in registered capital: 300 billion dong from private investors (60%) and 200 billion dong from the state.
• Goal by 2035: at least 5,000 billion dong in total capital, with 2,000 billion dong from the state and 3,000 billion dong from private investors.
• New money rule: private investors put in first, and the state matches with 40% of the new capital. Private investors would give 60%.

About the fund

The fund is a joint-stock company. The city approved its plan in March and launched it on April 17. Venture capital means investing money in new companies that may fail but could grow very large. The city says these investments often take 7 to 10 years to pay back, so it needs a long-term money plan.

Why it matters

Young tech companies often struggle to get money, especially at the start. The city hopes the fund will bring in private money, support high-tech and science companies, and help turn research into products people can buy. At a session on October 29, the council's economic and budget committee chief, Nguyen Cong Danh, said the plan fits the current situation and can help promising startups grow.

What to watch

• Whether the City People's Council approves the plan at the October 29-30 session.
• How much private money the fund actually raises, since the state's share depends on it.
• How the council checks the city's spending on the fund over time.