Viet Nam News -HCM CITY — The HCM City Startup Investment and Innovation Fund was launched yesterday to support business start-ups by youths.
Founded by the Việt Nam Youth Federation in HCM City in collaboration with the State-owned HCM City Finance and Investment Company and Sài Gòn-Hà Nội Commercial Joint Stock Bank (SHB), the fund has an initial capital of VNĐ30 billion (US$1.34 million).
The fund will mobilise capital from investors, enterprises and individuals to raise the capital to VNĐ100 billion ($4.49 million) by 2020.
Orient Commercial Joint Stock Bank and the HCM City Housing Development Commercial Joint Stock Bank have already signed an agreement to do so.
The fund will directly invest in start-ups registered and operating in the city and with at least one owner aged under 35.
Trương Lý Hoàng Phi, director of the Business Start-up Support Centre, the fund’s operator, said the fund would invest in businesses in all sectors.
But it will encourage technology-oriented businesses whose products have applications in mobile telephony, internet and agriculture or are in key economic sectors.
Investment in a project will be for an average of three to five years depending on the sector and scale.
Phạm Phú Quốc, deputy general director of the State-owned HCM City Finance and Investment Company, said the fund seeks to back innovation and enable the city to become a leading start-up hub.
The Việt Nam Youth Federation in HCM City has two funds to support young people start business, with the other providing loans to start-ups without mortgages and at low interest rates. — VNS