Individuals with an income of 100 million/year can set up a startup investment company.

Financial requirements for individuals to set up a startup investment company are assets of over half a billion or a minimum income of 100 million per year.

According to the draft Decree on innovative startup investment recently announced by the Ministry of Planning and Investment, an individual with a minimum income of VND200 million in the last two years (an average of VND100 million a year) or total assets including those of the spouse, minus related debts of at least VND500 million, is considered financially qualified to establish a startup investment company. For institutional investors, the minimum asset value is VND1 billion.

The minimum charter capital of a start-up investment company is 500 million and must be contributed in cash. The company's charter must clearly state the information that "contributing capital to establish this company is only suitable for investors willing to accept the high potential risk from the company's investment". Enterprises or start-up investment funds established and operating under the provisions of this Decree will be exempted from or reduced from taxes for a limited period.

More and more individuals and organizations need to contribute capital to establish a startup investment fund.

In order to protect investors from being exploited, the Decree sets out a number of compliance principles and restrictions such as not investing in real estate and securities, not borrowing or using assets to lend or guarantee loans to third parties, etc.

According to statistics from the Ministry of Planning and Investment, in the past 3 years, each year there have been a few dozen Vietnamese startups receiving investment capital. These investments are usually not large, ranging from 5,000 to 50,000 USD through the form of co-founding, contributing capital or buying shares to act as a shareholder.

Actual surveys show that more and more individual and angel investors have the need to contribute capital to form investment funds for innovative startups. However, currently there is only a legal framework regulating the establishment of securities investment funds with very high conditions such as minimum contributed capital of 50 billion VND, at least 100 investors (excluding professional securities investors) must buy fund certificates and the total sale value must reach at least 50 billion VND... These conditions are considered inappropriate, as well as not creating conditions to encourage investors to invest in startups.

This Decree was issued with the aim of unblocking capital flows for innovative startups by encouraging the establishment of innovative startup companies and investment funds. At the same time, it determines the legal status of startup companies and investment funds that are not yet regulated or are not clearly regulated by the current Vietnamese legal system.

The draft Decree was developed by the Ministry of Planning and Investment based on a review and assessment of the domestic startup investment situation in recent years, combining international practices and lessons learned from the US, Singapore, and Israel on legal regulations governing companies and startup investment funds. The development process involved consultation with many leading organizations in this field such as FPT Ventures, Cyber ​​Agent, etc.

According to VNN