The Vietnam International Financial Centre in Ho Chi Minh City (VIFC-HCMC), Ho Chi Minh City Venture Investment Fund Joint Stock Company (HCM VIF) and local early-stage venture capital firm Touchstone Partners have agreed to set up a blended finance, co-investment fund with committed capital of up to $100 million.
Touchstone and HCM VIF are each expected to contribute up to $50 million to the fund within the next five years, according to an announcement.
Touchstone claims this is a pioneering public-private co-investment model in Vietnam.
The VC firm has structured this blended finance model to help international investors manage investment risks and benefit from Vietnam’s attractive investment policies. HCM VIF, Ho Chi Minh City’s first venture capital fund with direct state budget participation alongside private-sector shareholders, will provide matching domestic investment capital.
Meanwhile, VIFC-HCMC will serve as the programme’s coordinating body, facilitating investment structures within the VIFC framework and supporting access to regulatory sandboxes, pilot programmes, licensing and administrative procedures, and applicable investment incentives.
It will also help connect portfolio companies with relevant government agencies, public-sector customers, infrastructure providers, industrial zones and strategic partners, enabling innovative technologies to be tested, commercialised and scaled.
The programme will focus on seed-to-growth-stage technology companies across key sectors, including AI-enabled innovations driving positive impact in education, healthcare, manufacturing and SME transformation; biotechnology and life sciences; renewables and climate resilience solutions.
The initiative also builds on the strategic cooperation signed earlier this year between VIFC-HCMC, Touchstone Partners and Temasek Foundation, advancing their shared commitment to Vietnam’s green transition and the development of a globally connected innovation ecosystem.
The newly announced fund works toward a fund-of-funds mechanism, which aims to connect investment funds and bring more resources into the startup ecosystem, according to Truong Minh Huy Vu, Vice Chairman of the Ho Chi Minh City People’s Committee cum Chairman of VIFC-HCMC.
“The partnership goes beyond providing capital. The fund will research together, develop products, build business models and set up a co-investment mechanism,” he said.
“This partnership offers a strategic way to deploy our capital, drawing on the experience of seasoned technology investors while also harnessing the industry knowledge and networks of HCM VIF’s shareholders,” added Tran Huu Dung, Chairman of HCM VIF.
HCM VIF is the first public-private venture capital fund established in Vietnam. Launched in April 2026, the fund has initial charter capital of 500 billion ($19.5 million), comprising 40% participation from the city’s budget and 60% from private-sector shareholders, with a target of a 10-fold expansion in size by 2035.
Its founding shareholders from the private sector include Sovico Group, Vingroup, Becamex, VinaCapital, Sunwah Group (Vietnam), VNG Corporation, CT Group, Hoa Sen Group, and FPT Corporation.
