Vietnam's VIFC-HCMC and Touchstone Launch $100M Startup Co-Investment Program

Vietnam's financial authorities and two investment firms have committed up to $100 million to a new co-investment program for technology startups — the first blended-finance scheme of its kind in the country.

In a statement on Thursday, Touchstone Partners said the Vietnam International Financial Center in Ho Chi Minh City (VIFC-HCMC), Touchstone Partners, and Ho Chi Minh City Venture Investment Fund JSC (HCM VIF) have signed a framework cooperation agreement. The program runs on a 1:1 matching mechanism over five years.

Under the framework, Touchstone and HCM VIF — the public-private venture fund of Ho Chi Minh City — will contribute up to $50 million combined to eligible companies. The structure can help international investors manage risk while taking advantage of Vietnam's investment policies, Touchstone highlighted.

For context: that $100 million ceiling is meaningful for Vietnam's venture scene, where a single matched program of this scale can underwrite dozens of seed-to-growth deals across five years.

Who brings what to the table?

Each partner carries a distinct role, and the division of labor is what makes the structure work.

• Touchstone Partners contributes its network of international investors and strategic partners, plus its experience identifying, investing in, and scaling technology companies. It will also support portfolio companies on governance and international expansion.
• HCM VIF provides matching domestic capital, combining international investment expertise, local financial resources, and industry networks.
• VIFC-HCMC coordinates the program. It will structure investments within the VIFC framework and unlock access to regulatory sandboxes, pilot programs, licensing, administrative procedures, and investment incentives. It will also connect portfolio companies with government agencies, public-sector customers, infrastructure providers, industrial zones, and strategic partners.

The stated goal: new technologies can be tested, commercialized, and scaled.

What does this change for founders and investors?

For founders, the practical payoff is faster access to capital plus regulatory shortcuts — sandboxes and pilot programs are typically hard to reach for early-stage companies. For foreign investors, the blended-finance structure offers a de-risked entry into a market where policy navigation has historically been friction.

The program targets seed to growth-stage technology companies across several sectors:

• AI-enabled innovation in education, healthcare, manufacturing, and small-business transformation
• Biotechnology and life sciences
• Renewable energy, energy efficiency, and climate mitigation
• Green economy and sustainable agriculture
• Waste management and the circular economy
• Smart, sustainable construction, and climate-resilient infrastructure

Officials frame it as more than money

Truong Minh Huy Vu, vice-chairman of the Ho Chi Minh City People's Committee and chairman of VIFC-HCMC, said artificial intelligence, core technology, deep tech, biotechnology, and the life sciences need capital, the capacity to execute, and routes to scale. He said the 1:1 model can work toward a fund-of-funds mechanism, connects investment funds, and brings more resources into the startup ecosystem.

Ngo Thuy Ngoc Tu, general partner of Touchstone, said the partners want to manage investment risk together and bring more capital into scaling innovation.

Tran Huu Dung, chairman of HCM VIF, said the partnership gives the fund a way to deploy its capital with seasoned technology investors and with the industry knowledge of its shareholders. The aim, he said, is a portfolio that delivers sustainable returns and supports HCMC's innovation economy.

The five-year clock is now running. If the matching mechanism proves out, Truong's fund-of-funds ambition suggests this $100 million could be a floor rather than a ceiling for Vietnam's state-backed venture push.

By Nathan Brooks