Vietnam High-tech Venture Capital Fund

The Ministry of Science and Technology has just submitted to the Prime Minister the project of Vietnam High-tech Venture Capital Fund with an estimated capital of VND 450 billion, in order to promote the activities of technology enterprises and commercialize research results. High-tech rescue.

VND 450 billion contributes to promoting technology

According to Mr. Do Van Loc, Acting Director of the High Technology Department, Ministry of Science and Technology: "The determination of the Fund's charter capital is based on the expectation that a number of Vietnam's high public enterprises are preparing to formulate and based on experience. IDG and from 19 Chinese high-tech funds have a capital of about VND100-1,400 billion, so the first fund of Vietnam has nearly one-third of IDG's fund and one fund. average of 19 Chinese funds ".

Mr. Loc also said that normally the time to recover investment capital and the investment interest rate for high-tech projects is from 7 to 10 years. To ensure safety and withdraw operating experience, the operation time of the new Fund is 15 years.

National Science and Technology Policy Council works on High-tech Venture Capital Fund (Photo: Nhandan)

Vietnam High-tech Venture Capital Fund will invest in enterprises in the form of share capital contribution (not exceeding 30% of the total investment capital of the project), buying back shares of high-tech enterprises. Taking the aim of supporting the formation and development of high-tech enterprises is fundamental, not taking profit as the main goal, the Fund will be guaranteed by the State with funding from the budget. To increase capital, the Fund is allowed to mobilize non-budget capital sources of enterprises and organizations at home and abroad.

The Fund's operating apparatus consists of the Fund Management Council (established by five members, established by the Minister of Science and Technology), the Fund Director and the Investment Appraisal Council. Ministry of Science and Technology coordinates with Ministry of Finance to control investment activities. Annual management expenses of the Fund shall not exceed 2.5% of the Fund's total capital.

Mr. Loc said that Vietnam currently has a number of active venture capital funds such as the fund of IDG Group (USA), Mekong Capital Investment Fund, but these funds mainly invest in information technology only. believe, so the establishment of a venture capital fund to mobilize domestic and foreign capital sources to promote high technology, new technology of Vietnam is still essential.

The concept of venture capital funds originated in the United States. It is an investment method whereby investors pour capital into newly established, unlisted enterprises on the stock market (mainly science and technology enterprises) . Different from financial investment Normally, the objects of high-risk investment are mostly high-tech enterprises, new technologies with small and medium scale in the start-up phase. Because of investing in high technology and new technologies, the risk is very high, but on the contrary, the success is huge. One of the characteristics of venture capital is that the venture capital provider does not directly provide capital to the business but through a professional organization to make investments and manage investment capital for this. requires a high level of expertise.

Should operate under the market mechanism

In the Decision No. 214/2005 / QD - TTg of the Prime Minister approving the Vietnam Technology Market Development Project, the Prime Minister assigned the Ministry of Science and Technology to study and submit to the Prime Minister for approval. Vietnam Venture Capital Fund established as one of the important measures for technology market development.

At the 15th meeting of the National Council for Science and Technology Policy, all opinions endorsed the creation of such a high-tech investment fund. However, there are still many issues surrounding capital, organizational structure and fund management method.

Even the name of the Fund, Minister of Education and Training Nguyen Thien Nhan - Member of the National Council of Science and Technology Policy - said that "the word" risk "will cause anxiety for the first. private ". He suggested that the fund be named " Prospective Investment Fund ". Minister Nguyen Thien Nhan affirmed that the Fund must operate under the market mechanism and reduce administrative intervention. Therefore, the involvement of the Ministry of Finance in this Fund is not necessary.

Professor Do Quoc Sam, former Rector of the University of Construction, said that it is necessary to determine that the Fund is a financial institution, not an administrative organization, so it must operate for profit. Therefore, the operation time of the Fund should be shortened.

Dr. Ho Si Thoang, former Chairman of VietSov Petro, also said that at the present time, it is only recommended to set up the Fund to pilot activities, preferably to set up funds and the State facilitates by policies.

Agreeing with the goal of " for profit " activities of the Fund, Dr. Truong Huu Chi, Director of the Institute of Industrial Machines and Instruments said that it should not " hedge " the Fund to invest only in high technology and technology. new. Instead of just investing in high technology, the Fund should invest both in appropriate technology, mainly to implement research results of universities. Therefore, the fund should be named Vietnam appropriate technology venture capital fund.

Although there are many different opinions around the Fund's name and operating mechanism, all of them think that the most essential part of the fund is investment appraisal. Appraisers must have both scientific and technological competence and financial expertise. Professor Dang Vu Minh, Chairman of the Vietnam Academy of Science and Technology, thinks that such people " must be paid well ."

Venture capital fund in the world

- America: As a world leader in venture capital.The first venture capital company in the United States was established by the University of MIT principal in 1946. Many well-known American technology companies such as Microsoft, Apple, Yahoo, etc. are established and developed from source. venture capital.Up to now, US venture capital is about 60 billion USD.

- EU: In the EU, the UK is the most successful country in venture capital.The British government has enacted the Law on Venture Capital Trust, whereby preferential income tax incentives are imposed on individuals investing in risky funds.However, in Germany, the risk fund is not very successful.

- Japan: Similar to Germany, the venture fund in Japan is also not very successful.It is thought that this is related to the " afraid of adventure " of Japanese people.

- Chile, Israel: Successful venture capital funds with government involvement.

(According to documents of the High-Technology Department,
Science and technology)