Vietnam: Startups shall be supported not more than 30% of total investments jointly made by venture capital funds

16:07, 19/03/2018

This is a featured content of Decree No. 38/2018/NĐ-CP of Vietnam’s Government providing for the investments in small and medium-sized startup companies.

According to Decree No. 38/2018/NĐ-CP of Vietnam’s Government, the local financial agency shall make a total investment in a startup of not more than 30% of total investments jointly made by venture capital funds in that startup.

An enterprise invested by the local financial agency must be a small and medium-sized startup that:

- operates in priority industries or sectors; and

- is invested by at least one venture capital fund prescribed in Article 21 herein.

The term of an investment with funding from the local government budget shall exceed 05 years from the investment date. Within 05 years from the investment date, the local financial agency may carry out procedures for transfer of its shares or stakes in the invested startup to a private investor.

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

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