The city invests 500 billion VND in the adventure Investment Fund
On October 27, the Hai Phong City People's Council passed a Resolution approving the Project to establish a Hai Phong City Adventure Investment Fund, with an initial investment capital of VND500 billion from the city budget.
The Hai Phong City adventure Investment Fund (abbreviated as the Fund) was established by the Hai Phong City People's Committee and operated as a joint stock company in accordance with the provisions of the Law on Enterprises with charter capital from the city's development investment expenditure estimate (500 billion VND), along with capital contributions from domestic and foreign organizations and individuals (if any). The Fund's goal is to invest in high-tech projects, high-tech enterprises, science and technology enterprises, and innovative startups in key areas, to support and promote innovation and commercialization of science and technology products.
The fund operates according to market principles, publicity, transparency, efficiency, anti-losses and reasonable risk acceptance - a characteristic factor of a risky investment fund.
The pilot operation period of the Fund is 5 years from the date of approval by competent authorities. Based on the results of activities, the People's Committee of Hai Phong City will submit to the City People's Council to decide on the continuation or termination of the Fund's activities.
The organizational structure of the Fund includes: General Meeting of Shareholders, Board of Directors, Supervisory Board and Executive Director.
According to the project, each high-tech project is invested with a maximum of 30 billion VND, while each enterprise is allowed to invest no more than 5% of the total capital of the Fund (ie about 50 billion VND). The fund can use up to 50% of the profits gained from investment activities to reinvest in high-tech projects, high-tech enterprises and innovative startups.
Driving force to promote the technology startup ecosystem
After merging administrative boundaries, Hai Phong City currently has 40 industrial parks, 2 economic zones and more than 43,000 private enterprises in operation. Of which, there are about 260 innovative enterprises and startup projects, accounting for nearly 6.8% of the total number of enterprises and startup projects nationwide.
In the 2016-2023 period, startups in Hai Phong have attracted nearly 20 billion VND in capital through about 5 capital raising rounds, but they are still quite modest compared to the city's potential. According to experts, the lack of venture capital is one of the major barriers that make it difficult for technology enterprises to expand their scale, commercialize products or access international markets.
Mr. Le Van Kien - Deputy Director of the Department of Science and Technology of Hai Phong City - commented that the establishment of the adventure Investment Fund has a great support for high-tech enterprises and startups. Currently, the biggest barrier for high-tech enterprises and innovative startups is the difficulty in accessing capital in the early stages, when most private investors are still hesitant due to high risks, lack of information and investment management tools.
The city will invest in at least 30 high-tech projects and 50 enterprises after 5 years, contributing to creating a healthy, competitive startup ecosystem, contributing to increasing the rate of high-tech enterprises in Hai Phong, Mr. Le Van Kien affirmed.
According to the Project, the priority industries for venture investment include: Digital technology; Information and communication technology; Biotechnology - medicine; New materials technology; Manufacturing technology - automation; Environmental technology, clean energy, carbon emission reduction; Robot technology; and marine science and technology.
Positive signal, but need to be operated properly and substantially
According to Economic expert - Dr. Dinh The Hien, Hai Phong's pioneering establishment of a risky investment fund is a positive signal, but for this model to be effective, it needs to be operated properly.
Dr. Dinh The Hien commented that the Government's permission for the locality to establish a venture capital fund to support high-tech enterprises, science - technology enterprises and startups, innovation is a new policy, meaningful for economic development, especially in the high-tech sector. However, operating a true risky investment fund is not simple, especially at the local level.
Vietnam used to have models of state-owned investment funds in the period of 2000 - 2010, typically the Ho Chi Minh City Urban Development Fund - HIFU (later the Ho Chi Minh City State Finance Investment Company - HFIC) and similar models in Hanoi. These are independent operating funds under the People's Committee, but most of the funds in other localities are only for administrative purposes and have not been operated under the actual investment mechanism. Even Ho Chi Minh City - the largest economic center in the country - has never formed a true adventure investment fund, despite having sufficient infrastructure and financial resources.
Mr. Hien cited the case of 2014-2015, the Management Board of Ho Chi Minh City High-Tech Park proposed to establish a technology adventure investment fund with an estimated capital of 100 billion VND, combining high-tech park and HIFU. Despite the convergence of research infrastructure, scientific staff and State financial capacity, the plan was still unsuccessful due to concerns about the risk of losing capital. The simultaneous establishment of funds in the provinces can easily turn into a movement if there is no careful preparation. Before establishing a fund, it is necessary to build a complete ecosystem - including a high-tech park, nursery, research infrastructure - to have a potential project for the investment fund. Otherwise, the fund will not have enough quality entities to invest.
As for Hai Phong - the first locality to approve the project to establish a risky investment fund - Mr. Dinh The Hien assessed this as a brave and pioneering step. He analyzed that the participation of the State in the risk investment fund is necessary to create seed capital, similar to the successful model of Taiwan (China) - where the Government invested first in infrastructure, technology incubation gardens, then the new risk fund went hunting for projects.
"If we only talk about digital transformation or innovation with slogans but the State does not initially invest capital, it cannot create real change. I strongly support pioneering localities like Hai Phong, because that is a way for the State to play a role in activating the risky investment market, said Mr. Hien.
From the perspective of a startup, Mr. Nguyen Duc Hoa, founder of a technology startup in Hanoi, hopes that the public adventure investment fund will open up new sources of capital for innovative projects. Mr. Hoa shared: Most local startups are stuck in the vicious cycle of lack of capital - lack of confidence. If this fund is operated transparently and dares to invest in feasible ideas, it will be a big boost to help young businesses boldly develop".
Mr. Dao Van Khoa (born in 1991), Director of Chavigreen Company Limited, headquartered in Kien Thuy Commune, Hai Phong City, a company specializing in the production of herbal cosmetics, shared: "We know that Hai Phong City has established a City adventure Investment Fund, allocated by the State budget, to support creative startups in Vietnam. I really hope to access the Fund and receive support from this fund to use with the purpose of expanding production, thereby being able to connect partners from the ecosystem; Support the company's strategy, attract talent and elevate the brand of the enterprise".
Ms. Pham Thi Mai, co-founder of a young logistics platform, hopes that the fund will not only stop at financial support. What a startup needs most is advice, connection and long-term companionship. A fund with investment experience and market understanding will help young businesses not only have capital but also know how to use capital in the right place," said Ms. Mai.
Da Nang has a policy but has not yet implemented a risky investment fund
Up to this point - at the end of October 2025, Da Nang has not had a venture capital fund, although the special mechanism has been approved early and the Standing Committee also has a pioneering policy.
From the beginning of 2025, the Standing Committee of the Da Nang City Party Committee will study mechanisms, policies, measures and increase capital so that the City Development Investment Fund prioritizes lending and investment in innovation projects and creative startups. Research on the co-investment mechanism with private risk investment funds and at the same time research on the formation of a risk investment fund using the state budget; Science, technology and innovation development fund to invest capital in high-tech enterprises, science and technology, creative startups in key areas of science and technology to support and promote innovation and commercialization of science and technology products.
At the forum on innovation from May 2025, Chairman of the People's Committee of Da Nang City at that time, Mr. Le Trung Chinh, affirmed that Da Nang can pioneer in establishing a risky investment fund with capital contributed by the State to experiment and mobilize organizations and individuals in the society to invest in risky investments, thereby drawing experience in perfecting legal regulations to develop this type.
However, up to now, the City People's Committee has not submitted to the City People's Council for approval the establishment of a risk investment fund. Thanh Hai
For the risky investment fund to operate effectively and avoid formality, Dr. Dinh The Hien noted: The operator must be a financial - investment expert, a former fund manager, understand the risks and know how to evaluate the project. If assigned to a deputy director of the Department of Finance or a university lecturer who has never run the fund, the fund will be institutionalized and cannot be operated according to the risk-off investment mindset". Therefore, public pension funds need to boldly recruit people from the private sector, people with experience " rolling around in the financial field", and can even invite foreign financial experts to operate to combine the State and market mechanisms.
Mr. Vu Ngoc Lam - Deputy General Director of Vietnam Container Joint Stock Company, Vice Chairman of Hai Phong City Business Association - said: I think the most difficult thing for businesses is "capital gap" in the initial stage. Specifically: High risk, low data, so investors should choose very strictly; the cautious market context makes capital demand assessment standards even tighter, traditional credit channels are not "sustainable" with intangible asset models (IP, software) - often requiring high/ tangible collateral; in addition, there are barriers to procedures - legal procedures when calling for foreign capital, causing many good projects to delay the calling for capital progress, losing opportunities. With the establishment of the Hai Phong adventure Investment Fund, the City Business Association expects the Fund to play a large enough role as a seed capital, operating according to market principles and accepting controlled risks; thereby, unlocking technology - innovation projects of the city's enterprises. The fund should co-invest to attract more capital from social resources, while providing non-financial support (advisory, training, connecting the market - domestic investors and FDI) to help businesses increase the capital calling rate in the next rounds," said Mr. Lam. According to the viewpoint of the City Business Association, the Fund needs to promote school - institute - enterprise linkages, prioritize core/applicable technology fields, and link innovation with new economic spaces of the city to accelerate commercialization. We hope that the Fund will operate transparently, resolutely, and make timely decisions; the City Business Association will always be ready to accompany in the role of introducing quality projects, participating in consulting on management and mobilizing counterpart from business community members, so that the Fund can truly become a springboard for accelerating technology - innovation in Hai Phong, Vice President of Hai Phong Business Association emphasized.
