Venture capital policies


Vietnam has introduced special policies to boost investment in startups. It supports the following sources of capital:

  • Angel investors
  • Venture Capital (VC) Funds: VC funds are created from investments of private investors aiming to invest in startups. The private investor who contributes to the VC shall be financially capable and take the responsibility for his/her stakes. 
  • SME Development Fund (SMEDF). 
  • National Technology Innovation Fund (NATIF). 
  • Domestic and foreign organizations and individuals doing business via contribution of capital to establishment of startups, purchase of shares or stakes of startups. 

The main instruments to provide support are: 

Tax exemption for investors in startups: Investors in startups will be entitled to remission of corporate income tax on revenues from their investment in startups for limited period of time.

State-driven efforts: Assigned state-owned finance organizations of the local authorities to assist in invest in startups. This includes:

  • Selecting eligible venture capital funds to invest in startups.        
  • Investing in startups from the local budget.
  • Transfer to private investors within 5 years from the day on which the stakes are contributed.