Ho Chi Minh City Launches $20 Million VC Fund with Liability Shield for Local Startups

Context Vietnamese tech startups have long struggled to raise capital because most venture funds are foreign and require lengthy approval processes. Completing those steps can take months or a year, often draining limited resources. Consequently, many founders shift ownership to a Singapore parent to gain simpler investment routes and tax advantages.

Key Facts - The HCM VIF JSC fund is structured as a joint‑stock company with roughly 40 % state capital and the rest from private investors. - Resolution 98 creates a liability exemption: fund managers are not held civilly or criminally liable for unsuccessful startup bets if they follow prescribed procedures. - Hoang Duc Trung, acting executive of the fund, said the accompanying tax package grants corporate‑income‑tax holidays of up to five years for qualifying startups and exempts personal and corporate taxes on gains from transferring startup stakes. - These measures target sectors such as artificial intelligence, semiconductors, and green technology.

What It Means By reducing legal risk for public‑backed investors and offering tax breaks, the fund aims to act as anchor capital that helps startups refine products, expand markets, and scale without relocating. The city expects the structure to attract both domestic and foreign investors who previously preferred Singapore‑based vehicles. If successful, the model could lower the frequency of “flip” arrangements that shift ownership abroad.

Watch for how quickly the fund deploys its $20 million, whether follow‑on rounds emerge from international backers, and if startup retention rates in Ho Chi Minh City improve over the next 12‑18 months.