Vietnam’s Vingroup announced on Monday the establishment of VinVentures, a technology investment fund with total assets of US$150 million.

This initiative aims to enhance operational ecosystems by supporting high-impact technology startups and ultimately fostering the expansion of digital technology businesses in Vietnam and neighboring regions.

VinVentures, backed by Vingroup and billionaire Pham Nhat Vuong, Vietnam's wealthiest individual, will focus on tech unicorns and startups valued at over $1 billion each.

Of the $150 million in assets, $100 million comes from existing investment portfolios within Vingroup, while the remaining $50 million is earmarked for distribution over the next three to five years.

The fund will primarily invest in sectors such as artificial intelligence, semiconductors, cloud computing, and high-tech products.0

In addition to startups affiliated with Vingroup, VinVentures is open to investing in other promising startups that demonstrate potential for growth and the ability to deliver exceptional products and services.

Currently, VinVentures is concentrating on the Vietnamese market but it has plans to expand into regional startups in countries like Singapore, Indonesia, and the Philippines that share similar development characteristics.

The funding process can take anywhere from two to three months after a startup submits its application, with larger agreements potentially under review for up to six months.

To qualify for funding from VinVentures, a startup must exhibit sustainable growth potential, strong performance metrics, commercially viable products or services, practical applications, and a founding team with credibility and experience.

The next stage will involve VinVentures acquiring equity stakes in the company while maintaining specific profit expectations, thereby adhering to a professional investment model.

VinVentures aims to create favorable conditions for innovative ideas and technological advancements to penetrate the Vietnamese and neighboring markets.

In addition to equity investments, Le Han Tue Lam, CEO of VinVentures Fund, highlighted that the fund offers valuable connections within the Vingroup ecosystem.

This includes opportunities for product evaluation, quality testing, and access to potential customers.

"We are also prepared to advise and assist startups in connecting with major market partners and serve as a 'launch pad' for promising new ventures," Lam said.

Before launching VinVentures, Vingroup had already invested in various tech startups through initiatives like Vingroup Ventures and VinTech City, namely VinBigData, VinAI, VinBrain, and VinCSS, which ave successfully developed their products and achieved leadership positions in their respective fields, Lam added.

Vietnam’s startup ecosystem ranked third in Southeast Asia, with an anticipated economic impact of up to $5.22 billion, as per Global Startup Ecosystem Report 2023.

The number of startups in Vietnam has surged to more than 3,800 today from over 1,600 during the COVID-19 pandemic, with AI firms representing nearly 10 percent.

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