Lào Cai establishes venture capital fund for startups

The Lào Cai Provincial People's Committee has approved a scheme to establish the Lào Cai Venture Capital Fund. Designed to act as ‘seed capital,’ the fund aims to support innovative startups, high-tech enterprises, and digital transformation initiatives within the province.

Operating under a joint-stock company model, the fund will seek to mobilize social resources by attracting investment from domestic and foreign organizations, businesses, and individual investors. According to provincial resolutions, state capital will account for over 50% of the charter capital, with a maximum allocation of 300 billion VND, subject to budget balancing capabilities.

The fund will focus on priority sectors including manufacturing technology, automation, environmental technology, carbon emission reduction, clean energy, robotics, smart agriculture, and smart tourism. Investment methods may include direct investment or co-investment through share purchases or capital contributions. To manage risk, the fund's investment in a single enterprise is capped at 5% of its total capital, while support for high-tech projects is limited to a maximum of 30% of the project's implementation costs.