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| The VR-H3 robot, developed by VinRobotics, participates in the robot parade at ICRA 2026 __Photo: VNA |
According to the Ministry of Science and Technology (MOST), one of the major bottlenecks in Vietnam’s innovation ecosystem is the wide gap between research and commercialisation. Many research outcomes have yet to be turned into marketable products due to the lack of suitable financing, particularly for deep-tech start-ups.
Although venture capital funds are provided for under the Law on Science, Technology and Innovation and Government Decree No. 264 of 2025, a pilot mechanism and national-level policies are still needed to address the distinctive features of venture capital investment, including its high-risk nature, portfolio-based management and long investment cycle.
The proposed National Venture Capital Fund would operate in line with these characteristics. Its performance would be assessed over the entire long-term investment cycle rather than by individual investments. Its governance framework would also be aligned with international practice by accepting an appropriate level of investment risk, while providing exemptions from liability for managers and executives who fully comply with statutory procedures.
MOST is also studying measures to support the development of the venture capital ecosystem, including the establishment of a dedicated stock exchange for innovative start-ups, which would provide investors with a transparent exit channel.
Regarding capital mobilisation, the Fund would be launched with initial capital of around USD 100 million, with the State playing the leading role during the 2026-28 period. During the 2028-35 period, it would gradually mobilise additional private capital, which is expected to account for about 30-40 per cent of total capital. Specialised funds would also be established for each strategic technology sector.
In terms of organisational structure, the ministry has proposed applying market-based principles to recruitment, employment and remuneration, granting greater autonomy to the investment council, and strengthening links with research institutes, universities and technology incubators.
For risk management, the Fund’s performance should be assessed on the basis of its overall investment portfolio rather than individual projects. Persons who make decisions within their authority and in compliance with statutory procedures, while ensuring publicity, transparency and objectivity, should be protected under an appropriate legal mechanism.
The MOST has therefore proposed the formulation of a dedicated legal framework for the Fund. Accordingly, the National Assembly would adopt a resolution on a special mechanism for the Fund’s operation. The proposed resolution would include provisions on exemptions from liability for officials responsible for managing and operating the fund financed by the state budget, provided they act in accordance with regulations.
The ministry believes that a sufficiently flexible mechanism, capable of accommodating controlled investment risks, particularly in strategic technologies, would enable the Fund to operate in line with the nature of venture capital investment. It would also create institutional momentum to accelerate the application of new technologies in production and business activities.
Once implemented, the National Venture Capital Fund is expected to become an important tool for supporting technology enterprises and narrowing the gap between research and the market, thereby contributing to the achievement of the goals on science and technology, innovation and digital transformation set out in Resolution 57.- (VLLF)
