At the 26th Session (Special Session) of the Hanoi People's Council held on the morning of September 29, delegates unanimously voted to approve the pilot project to establish the Hanoi City adventure Investment Fund; stipulate the mechanism for organizing the activities of the adventure Investment Fund, the responsibility for inspection, supervision, and reporting the results.
The Hanoi City adventure Investment Fund is a fund established by the Hanoi People's Committee and operates under a public-private partnership model based on a business investment cooperation contract, without legal status.
The fund is funded with charter capital from local budgets, receives funding, and mobilizes other legal capital sources according to the provisions of law with the aim of investing capital in high-tech enterprises, science and technology enterprises, and innovative startups in key areas of science and technology of the capital to support and promote innovation and commercialization of science and technology products.
The fund operates according to market principles, accepting risks, ensuring publicity, transparency, efficiency, preventing loss and waste of capital.
Regarding implementation, according to the Submission of the City People's Committee, the Hanoi Venture Capital Fund (HVCF) has a number of key characteristics. That is, the Fund was established in the form of a business investment cooperation contract (BCC), according to the public-private partnership model, without separate legal status.
The pilot period is 10 years. After 5 years, a preliminary review and comprehensive assessment will be conducted; after 10 years, a review will be conducted and the People's Council will be submitted to decide whether to continue, adjust or stop operations.
Regarding the organizational structure, the Investor's Congress includes the City People's Committee and a maximum of 6 private investors contributing capital. The Fund Management Board is limited to 9 members, including State representatives, private investors, and independent experts. The Fund Management Company is hired to operate and manage capital, ensuring professionalism.
The City budget is expected to contribute a maximum of VND600 billion, accounting for no more than 49% of the Fund's charter capital. The rest is contributed by private investors and domestic and foreign organizations. The fund can mobilize additional aid, sponsorship and other legal capital.
Article 36 of the 2024 Capital Law regulating adventure investments using the State budget stipulates: The City People's Council approves the project, stipulates the mechanism for organizing the activities of the adventure Investment Fund, the responsibility for inspection, supervision, and reporting on implementation results. The City People's Committee decided to establish a Fund, issue the charter and investment regulations of the adventure Investment Fund.
The Resolution was issued to implement the provisions of Article 36 of the Capital Law; at the same time, concretize the city's policies and orientations on science, technology development and innovation.
The establishment of a State-owned adventure Investment Fund in Hanoi aims to build an effective financial tool, supporting startups to innovate, create high technology, strategic technology and digital transformation to help businesses overcome the initial difficult period; promote a strong development of the creative startup ecosystem, contributing to the realization of the Capital's Knowledge and Innovation Economic Development Strategy.
Along with that, create a legal basis for the organization of the apparatus, clearly defining the functions, tasks, powers and operating mechanisms of the Hanoi City adventure Investment Fund. Attracting domestic and foreign financial resources; creating a favorable innovation environment, promoting comprehensive digital transformation, affirming Hanoi's position as the leading innovation center in the country and gradually reaching the regional level.
