Government regulations on national and local venture capital funds

(GLO)- The Government has just issued Decree No. 264/2025/ND-CP regulating the National Venture Capital Fund and local venture capital funds.

Accordingly, this Decree provides for the establishment, organizational structure, operation, management, capital proportion structure from the state budget; capital use, supervision mechanism for the National Venture Capital Fund, local venture capital funds and other contents specified in Article 40 of the Law on Science , Technology and Innovation.

The Government has just issued regulations on national and local venture capital funds. Illustration photo: Internet

Venture capital is an investment activity through contributing capital to establish, purchasing shares, capital contributions in innovative start-up enterprises or establishing, contributing capital to venture capital funds, innovative start-up investment funds.

The national venture capital fund is established and operates as a limited liability company with two or more members or a joint stock company in accordance with the provisions of the Enterprise Law. The local venture capital fund is established and operates as an enterprise in accordance with the provisions of the Enterprise Law.

National venture capital funds and local venture capital funds have legal status, seals, and are allowed to open accounts at the State Treasury and domestic and foreign banks in accordance with relevant legal provisions.

The Ministry of Science and Technology is the agency representing the owner of state capital at the National Venture Capital Fund and is responsible for appointing a representative of state capital at the fund. The Provincial People's Committee is the agency representing the owner of state capital at the local venture capital fund and is responsible for appointing a representative of state capital at the fund.

The Fund is allowed to cooperate with and hire domestic and foreign professional organizations and individuals to manage and operate the Fund's activities according to the Fund's Charter; and to establish advisory councils and investment appraisal councils to support the Fund's investment activities.

The Fund operates on the following principles: Complying with Vietnamese laws and international treaties to which Vietnam is a member; complying with the laws of the country and territory when investing abroad. Operating on market principles, accepting controlled risks, ensuring publicity, transparency, efficiency, and information security.

Along with that, support the innovative startup ecosystem, prioritize investment in businesses and innovative startup projects with high growth potential in the fields of high technology, digital technology, strategic technology, technology that encourages transfer, green economy, circular economy, sustainable development, creating positive impacts on the local and national economy, society and environment.

The Decree stipulates that for the National Venture Capital Fund, the Fund's charter capital includes: State capital allocated from the Ministry of Science and Technology's development investment expenditure estimate, allocated once upon the Fund's establishment, with the initial capital allocated from the state budget being at least VND 500 billion. Capital contributions from domestic and foreign organizations and individuals (if any) are implemented in accordance with the provisions of law and the Fund's Charter.

The charter capital of the National Venture Capital Fund established in the first 5 years must reach at least VND2,000 billion, based on state capital allocated from the state budget and capital mobilized from organizations and individuals.

For local venture capital funds, the fund's charter capital includes: State capital allocated from the local development investment expenditure budget, allocated once upon the fund's establishment, with the initial capital ratio allocated from the state budget decided by the provincial People's Committee. Capital contributions from domestic and foreign organizations and individuals (if any) are implemented in accordance with the provisions of law and the Fund's Charter.

In addition, Decree No. 264/2025/ND-CP also specifically stipulates the organizational structure and powers of the fund; objectives, functions and tasks of the fund; revenue sources, operating expenses, investment expenses of the fund...

Source: https://baogialai.com.vn/chinh-phu-quy-dinh-ve-quy-dau-tu-mao-hiem-quoc-gia-va-dia-phuong-post569463.html