Management of venture capital funds in Vietnam

Specifically, according to Article 7 of Decree No. 38/2018/NĐ-CP of Vietnam’s Government, a venture capital fund shall be managed under at least one of the following models:

- General meeting of investors, the fund management company;

- General meeting of investors, the fund’s Board of representatives or Director, the fund management company;

- General meeting of investors, the fund’s Board of representatives and Director, the fund management company.

The fund’s investors may either establish or hire a company to take charge of managing the venture capital fund. The fund management company shall carry out procedures for establishment of the venture capital fund and apply for registration of its additional business sector, which is management of venture capital funds, in accordance with the law regulations on company registration when taking charge of managing the venture capital fund.

The management of the venture capital fund prescribed herein shall be done according to the fund’s Charter and agreements or contracts signed with the fund (if any), and not be governed by regulations of the Law on securities.

Unless otherwise specified in the fund’s Charter, the fund management company shall submit reports to the fund’s Board of representatives/ Director on a three-month basis on the following contents:

- The fund’s investment portfolio, including total investment made in each startup.

- The investment plan and divestment plan (if any).

- The administration costs and bonuses (if any) paid to the fund management company, the fund’s Board of representatives or Director and other service charges as regulated in the fund’s Charter that arise during the reporting period.

- Other contents at the request of the fund’s Board of representatives or Director.

Transfer of shares of a founding shareholder of the fund management company shall be made in accordance with regulations of the Law on enterprises of Vietnam.

View relevant contents at Decree No. 38/2018/NĐ-CP of Vietnam’s Government, effective from March 11, 2018.

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