Vietnam Sets Stage for Startup Boom with New Stock Exchange
For the first time, Vietnam will establish a separate stock exchange for innovative startups who will have the opportunity to go public domestically instead of seeking IPOs abroad, opening up new fundraising avenues within the country. This move marks a significant shift in how Vietnam supports homegrown innovation and aims to remove one of the biggest barriers startups face: access to early-stage capital.
To complement this, the government plans to roll out state-backed venture capital funds at both central and local levels by 2025. These funds will be managed by qualified professionals and are designed to accept investment risk without penalizing failure.
Alongside this financial push, regulatory changes under the revised Law on Science, Technology, and Innovation are making it easier for startups to operate. New policies now allow intellectual property assets to be used as collateral, promote the use of innovation vouchers, encourage public procurement of startup solutions, and streamline the registration process, especially for single-person enterprises.
Together, these changes represent a historic policy shift that positions Vietnam as a serious contender in the global innovation economy. By building a capital market tailored to startups and reinforcing it with public investment and progressive regulations, Vietnam is addressing its long-standing funding gap.
These efforts could empower more local startups to scale, attract both domestic and foreign investors, and create a self-sustaining cycle where capital, innovation, and market growth reinforce each other.
$350M Green Finance Boost: VPBank Steps Up as ESG Leader in Vietnam
VPBank has just secured a $350 million loan in partnership with SMBC and four major global development finance institutions - JICA, FinDev Canada, Export Finance Australia, and British International Investment. SMBC led the deal as coordinator, marking a key milestone in Vietnam’s financial sector. Notably, this is the first time both BII and EFA are directly funding through on-lending structures in Southeast Asia, making it one of the largest multi-agency loans ever for a Vietnamese joint-stock bank.
The funds will be used to support green projects aligned with Vietnam’s Net Zero 2050 goals, expand financing for SMEs, especially those founded or led by women, and boost infrastructure development in underserved areas. This move also reinforces VPBank’s growing role as a regional sustainability leader. It recently raised a record-breaking $1 billion syndicated green loan, the largest of its kind by a Vietnamese private entity.
This deal signals a broader shift in Vietnam’s finance landscape, as ESG-oriented capital flows gain momentum. For startups, SMEs, and investors, it highlights rising interest in impact-driven ventures and green innovation. VPBank’s success reflects both international confidence in Vietnam’s ESG trajectory and the expanding role of commercial banks in shaping a more inclusive, sustainable economy.
Vietnam Eyes $100M Innovation Boost with First Government-Backed VC Fund
Vietnam is setting up its first-ever government-backed venture capital (VC) fund with the goal of raising $100 million to support early-stage startups, especially in science, technology, and digital transformation. The fund will follow a hybrid model, with 60% of the capital sourced from the state and local enterprises, and the remaining 40% expected from foreign investors.
Backed by the new Law on Science, Technology, and Innovation, effective from October 2025, this fund aims to become a long-term mechanism to accelerate tech entrepreneurship while addressing funding shortages in underserved regions and sectors.
To ensure speed and flexibility, experts recommend that the fund be privately managed, with the government playing a limited partner role. This initiative comes at a time when Vietnam’s startup fundraising activity is on the rise: Q1 2025 alone saw nearly $167 million raised across 11 deals, almost triple from the same period last year. Yet, only six local VC funds are currently active, highlighting the critical funding gap this new initiative seeks to fill.
If executed well, this $100 million VC fund could mark a turning point for Vietnam’s innovation economy. By prioritizing impact over pure profit and establishing a professional, independent governance structure, the fund has the potential to unlock quality investments, attract global capital, and become a driving force behind the next wave of Vietnamese startups.
EQuest Dispute Highlights Risk in $38M Education Deal
EQuest, a KKR-backed education group, has filed a criminal complaint against Pham Bich Nga, founder of Ngoi Sao Vietnam, over alleged fund misappropriation and asset seizure after acquiring 80% of the school network in a $38 million deal. During the handover, Nga withdrew from one school and refused to cooperate despite a binding agreement.
The case is still ongoing and serves as a reminder for investors to stay cautious before committing to any deal.
Vietnam’s Banks Are Betting Big on Startups
Vietnamese banks are ramping up support for startups, with credit growth reaching 9.9% by mid-2025 and more funds flowing into innovation-led sectors. Banks like OCB partnering with VCs (e.g. Genesia Ventures) are now offering unsecured loans based on future cash flow and founder potential, signaling a shift toward venture-style financing. This marks a bold step toward recognizing startups as credible borrowers.
Read our full breakdown from last week for deeper insights into how this change could reshape Vietnam’s startup ecosystem. (Link)
Genesia Ventures is an early-stage venture capital firm operating in Japan and Southeast Asia, with a strong belief in the long-term potential of Vietnam’s digital economy. Beyond providing capital, the fund actively supports startups through strategic guidance and connections to a broader regional network.