Page 58 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

Conditions of forming venture capital funds

Currently, in Viet Nam, there is no official document detailing and fully regulating
venture capital funds. However, the legal regulations related to venture capital fund
activities in Viet Nam are mentioned in legal documents such as the Laws on Securities,
Enterprises Law, Credit Institutions Law or Investment Law, etc.
According to Decree 38/2018/ND-CP, a venture capital fund (or Innovation Investment
Fund as it is called in Decree 38) is not considered a juridical person and is established
by capital contributed by not more than 30 investors according to the fund’s Charter.
Investors may contribute to a venture capital fund with VND cash, gold, land-use rights
and other assets valued in money. Investors are not entitled to contribute borrowed capital
to a venture capital fund. Specifically, the Decree requires that the total investment made
in a startup shall not exceed 50% of its charter capital after receiving investments.
Particularly in high-tech business, the venture capital fund is interpreted and officially
recognized in Decree No. 99/2003/ND-CP on promulgating regulations for high-tech parks
issued by the Government. “A venture capital fund is a financial institution set up under
the law provisions to invest in high-tech nursery activities and high-tech enterprises. The
venture capital funds shall operate based on their organization and operation charters”.
In the Decree, the Government stipulates the venture capital fund in the high-tech park,
the function of the venture capital fund, related concepts, and how to use the venture
capital fund.

Science and Technology Fund

According to Circular 15/2011/TT-BTC, the Science and Technology Fund is
established by Enterprises to form a finance source to invest in activities of science and
technology of enterprises in Viet Nam through research, application and development,
technology innovation, product innovation, production rationalization to improve the
competitiveness of enterprises.

5858 Guidelines for the Strategy for sustainable agriculture and rural development
Guidelines for the Strategy for sustainable agriculture and rural development
in the period 2021-2030, and vision to 2050
in the period 2021-2030, and vision to 2050