The Ministry of Planning and Investment has drafted a new set of rules which seek to make it easier for local and foreign venture capital funds to operate in Vietnam, where startups are in dire need of funding.

The move is the government’s latest effort to achieve its goal to turn the country into a startup nation with 5,000 tech firms by 2020.

According to the draft recently published by the ministry’s Agency for Enterprise Development, the funds can acquire licenses within three days since application and there are no limits on their size.

At the moment, investment funds in Vietnam are managed in accordance with laws on securities investment funds, meaning that they must have a minimum capital of VND50 billion (US$2.2 million), or at least 100 investors.

Many private investors or angel investors want to establish venture funds but cannot meet such “high and strict” requirements, given their budgets often range between $5,000 and $50,000, the agency said, citing a survey.

Most existing funds are managed by local banks and big companies, such as Vietcombank and state-owned energy giant PetroVietnam.

They rarely invest in startups, especially those in their initial stages, and mostly eye projects worth hundreds of thousands of dollars, according to the agency.

Source: Vietnam to ease venture capital rules to realize ‘startup nation’ dream | Business | Thanh Nien Daily

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Vietnam’s Blue Economy Potential and Opportunities for Investors

The sea and coastal areas of Vietnam account for approximately 47-48 percent of the country’s GDP. Vietnam Briefing highlights some distinct characteristics of the blue economy as well as opportunities for investors.

Why Binh Duong is a Magnet for FDI in Vietnam?

The province, with its 30 industrial zones is second only to Ho Chi Minh City, in terms of FDI attraction.

Vietnam’s Opportunities and Challenges for Investors

For years, Vietnam has aimed to reduce its direct ownership in key state companies and promote private ownership. Nevertheless, equitization and divestment have not yet taken place as scheduled and have experienced constant delays.