The Ministry of Planning and Investment was drafting a circular on a venture capital fund to create a legal framework for promoting start-ups and make Việt Nam a start-up nation.
The Ministry of Planning and Investment was drafting a circular on a venture capital fund to create a legal framework for promoting start-ups and make Việt Nam a start-up nation.
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| The draft, which is now being raised for public comments, would regulate the establishment, management and operation of venture capital funds for start-ups in Viet Nam. — Illustrative image/ Photo doanhnhansaigon |
The draft, which is now being raised for public comments, would regulate the establishment, management and operation of venture capital funds for start-ups in Viet Nam.
The draft circular said that venture capital into start-ups was defined by investors contributing funds in a start-up or by buying stakes to launch the business or increasing equity when the business had not earned a pre-tax profit.
It would take only three days to launch a venture capital fund in Viet Nam, according to the draft circular.
In addition, the operation of a venture capital fund would not apply regulations on the equity investment fund. A venture capital fund could raise additional capital from existing members or new members but would not be allowed to borrow money for investments.
(Source:VNS)
