Regulations on venture investment funds using budget in the capital law

Abstract

Venture Capital Funds (VCF) play a crucial role in promoting innovation, creativity, and economic development, especially for startups. When using the state budget, the role of these funds is further expanded and brings more positive effects. For the first time in Vietnam, the legal framework for VCF using the state budget has been enacted in the Capital Law (Law No. 39/2024/QH15, passed by the 15th National Assembly on June 28, 2024). This article will delve into the regulations on VCF using the state budget in the Capital Law, and at the same time propose specific recommendations for concretizing these policies as a basis for building legal documents and guidelines for implementing the Capital Law on VCF using the state budget. The experiences of developed countries such as the United States, Israel, China, and Singapore on VCF using the state budget are also studied as a basis for providing recommendations to Hanoi city in building the organizational structure, management, and operation of VCF using the state budget.