HCM CITY (Biz Hub) — The HCM City Startup Investment and Innovation Fund was launched yesterday to support business start-ups by youths.

Founded by the Viet Nam Youth Federation in HCM City in collaboration with the HCM City Finance and Investment State-owned Company and Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB), the fund has an initial capital of VND30 billion (US$1.34 million).

The fund will mobilise funds from investors, enterprises and individuals to raise the capital to VND100 billion ($4.49 million) by 2020.

Orient Commercial Joint Stock Bank and the HCM City Housing Development Commercial Joint Stock Bank have already signed an agreement to do so.

The fund will directly invest in start-ups registered and operating in the city and with at least one owner aged under 35.

Truong Ly Hoang Phi, director of the Business Start-up Support Centre, the fund's operator, said the fund would invest in businesses in all sectors.

But it will encourage technology-oriented businesses whose products have applications in mobile telephony, internet and agriculture or are in key economic sectors.

Investment in a project will be for an average of three to five years depending on the sector and scale.

Pham Phu Quoc, deputy general director of the HCM City Finance and Investment State-owned Company, said the fund seeks to back innovation and enable the city to become a leading start-up hub. — VNS