Under the
proposal, Ho Chi Minh City suggests allocating up to VND1.8 trillion ($70.8
million) from the municipal budget between 2027 and 2035, aiming to elevate the
fund’s total charter capital to VND5 trillion ($196.8 million).
At a
review meeting for three draft resolutions submitted by the Ho Chi Minh City
People’s Committee on October 28, the Economic and Budget Committee of the
municipal People’s Council examined proposals related to local government bond
issuance, domestic financial institution loans, and charter capital
supplementation for the city’s Venture Capital Fund.
Combining
public capital with private investment
Regarding
the draft resolution on capital supplementation for the fund, Mr. Tran Trong
Tuyen, Deputy Director of the Ho Chi Minh City Department of Science and
Technology, reported on the rationale, capital increase roadmap, and
coordination mechanisms between public funds and private capital.
According
to the submission dossier, the Ho Chi Minh City Venture Capital Fund Joint
Stock Company’s business registration certificate was issued on April 10,
with an initial charter capital of VND500 billion ($19.68 million), of which
private capital accounted for VND300 billion ($11.8 million), or 60 percent.
The
municipal People’s Committee proposed an additional state budget contribution
of up to VND200 billion ($7.87 million) annually, with total state
supplementation capped at VND1.8 trillion ($70.8 million) for the 2027-2035
period.
Combined
with the initial state capital of VND200 billion ($7.87 million), total state
contributions to the fund by 2035 will reach a maximum of VND2 trillion ($78.7
million), aligning with the target of expanding total charter capital to at
least VND5 trillion ($196.8 million).
The
proposal specifies that state capital allocations will be tied to private
capital mobilization outcomes. If private capital raising falls short of
targets, state contributions will be calculated on a matching ratio basis.
Conversely, if private capital exceeds expectations, annual state budget
additions will remain capped at VND200 billion ($7.87 million).
Delegates
noted that capital allocation must be considered within the broader context of
resources dedicated to science, technology, and innovation, alongside
governance mechanisms, portfolio evaluation methods, and risk control
frameworks for venture capital investments.
During the
meeting, the Department of Finance presented draft resolution details regarding
the issuance of municipal bonds, project bonds, construction bonds, urban
bonds, green bonds, and loans from domestic financial institutions to fund
local development projects.
In the
2026-2030 period, the city foresees maximum domestic borrowings of VND49.29
trillion ($1.94 billion) to cover budget deficits. This includes VND17.55
trillion ($690.9 million) on-lent from Government borrowings and VND31.73
trillion ($1.25 billion) raised domestically, primarily
The draft
resolution aims to diversify financing tools to meet investment demands for
urban railways, transport infrastructure, regional connectivity projects,
environment, and digital transformation.
Delegates
emphasized matching borrowing plans closely with project implementation
capacity to prevent unnecessary capital costs.
