Hanoi pilots a adventure investment fund operating under a public-private model

The Hanoi Investment and Business Cooperation Fund was established by the Hanoi People's Committee, operating under a public-private partnership model on the basis of a business-to-business investment cooperation contract (BCC), without legal status.

The fund is funded with charter capital from local budgets, receives funding, and mobilizes other legal capital sources according to the provisions of law with the aim of investing capital in high-tech enterprises, science and technology enterprises, and innovative startups in key areas of science and technology of the capital to support and promote innovation and commercialization of science and technology products.

The fund operates according to market principles, accepting risks, ensuring publicity, transparency, efficiency and preventing loss and waste of capital. The pilot period is 10 years from the date of the establishment decision; after 5 years, there will be a preliminary review, and after 10 years of the review, the City People's Council will decide whether to continue or stop operations.

The Fund's capital is formed from the Hanoi City budget and the capital contribution of a maximum of 6 other investors according to the charter and capital contribution contract. The capital contributed from the city budget does not exceed VND 600 billion and is a maximum of 49% of charter capital; the rest is contributed by domestic and foreign investors, in accordance with legal regulations.

Director of the Department of Science and Technology Tran Anh Tuan said that in the context of an increasingly dependent economy on knowledge and innovation, countries and localities with sustainable development orientation all focus on building an ecosystem to support startups, especially innovative and creative startups.

Hanoi is one of the largest economic, political and educational centers in the country, with a large concentration of research institutes, universities, start-up support organizations and especially a team of intellectuals and dynamic young entrepreneurs. However, one of the biggest barriers for innovative and creative startups is the difficulty in accessing capital, especially early-stage risky investment capital. Meanwhile, private investors are often reserved due to high risks, lack of information, and lack of investment management support tools.

"The establishment of a State-owned and Hanoi-based risky investment fund is necessary to provide strategic capital and non-financial support (training, consulting, international connectivity), helping businesses innovate and develop products, improve competitiveness, and contribute to double-digit economic growth. In addition, promoting the formation and development of an innovative startup ecosystem, connecting the following components: Universities, research institutes, investors, innovative startups and international partners, especially in Hoa Lac High-Tech Park, associated with the socio-economic development needs of Hanoi City", said Mr. Tuan Anh.

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