At its 26th session on September 29, the Hanoi People’s Council approved a proposal to pilot the establishment of the Hanoi Venture Capital Fund (HVCF).

The fund, initiated by the Hanoi People’s Committee, will operate under a public–private partnership model based on business investment contracts, without independent legal status.

It will function on market principles, accepting risks while ensuring transparency, efficiency, and prevention of capital losses or waste. Its mission is to support and promote innovation, as well as the commercialization of scientific and technological products.

The pilot program will run for 10 years from the date of official approval. A mid-term review will be conducted after five years, followed by a comprehensive evaluation in the 10th year to decide whether to continue or terminate the fund.

The fund’s charter capital will come from the city budget, contributions from investors, sponsorships, and other legitimate sources.

The city’s budget contribution will not exceed 600 billion VND (about USD 24.5 million) and must remain below 49% of the fund’s total charter capital. The remaining capital will come from private investors who meet the fund’s conditions and contribute under investment agreements.

On the same day, the Hanoi People’s Council also approved a resolution introducing mechanisms and policies to support the development of the city’s startup and innovation ecosystem.

Key financial incentives include:

Up to 70% support for costs of capacity-building programs for startups, and for using infrastructure at Hanoi High-Tech Park, the Hanoi Innovation Center, technology incubators, the Hanoi Technology Exchange, and the city’s Cultural Industry Center for pilot projects.
Up to 70% support for hiring experts, mentors, and advisors for up to three years.
Up to 100% support for costs of startup project selection.
Up to 100% support for loan interest payments and credit guarantees when borrowing from commercial banks.
Up to 100% support for organizing ecosystem networking events, including forums, seminars, competitions, and programs connecting investment, technology, and markets.

N. Huyen