NIC to venture into startup investments

July 25, 2024 | 19:03

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The Ministry of Planning and Investment (MPI) on July 24 has proposed the establishment of a National Innovation Support and Investment Fund to manage and utilise its capital based on market principles, accepting potential risks and ensuring transparency.

Currently, the MPI is seeking public feedback on a draft decree on preferential policies for the National Innovation Centre (NIC).

A key highlight of this draft is the proposal to establish the National Innovation Support and Investment Fund. This fund will serve to supplement investment resources and support enterprises, organisations, and individuals, thereby fostering innovation and entrepreneurship.

Accordingly, the fund will operate as a limited liability company or joint-stock company, with initial capital contributions from the NIC, various businesses, investment funds, and other organisations and individuals. The fund's management and capital utilisation will follow market principles, accepting potential risks while ensuring transparency.

The draft decree specifies that the fund will support innovation through several activities: investing in domestic and international startups and innovative enterprises, including venture capital; funding innovation and entrepreneurial activities for businesses; providing scholarships and research funding to research organisations and experts in priority technology fields of the NIC; and awarding scholarships to talented students in high-tech, innovation, and entrepreneurship fields.

The Minister will have the authority to approve the fund's charter, which includes the type of enterprise, organisational structure, charter capital, contribution levels from the NIC, mechanisms for attracting and entrusting investment capital, innovation and entrepreneurship funding mechanisms, and the fund's risk acceptance ratio in investment activities.

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By Tri Lam

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