(Bloomberg) -- Vietnamese conglomerate Vingroup JSC is starting a $150 million fund to back technology startups across Southeast Asia that focus on areas including artificial intelligence, semiconductors and cloud computing, according to an emailed statement.
Vingroup is financing the fund, VinVentures, with $100 million from a previous investment portfolio, the company said. Vingroup founder Pham Nhat Vuong, Vietnam’s richest man, will gradually add another $50 million to the fund from his personal wealth, according to the company.
VinVentures will initially target Vietnamese startups before broadening its scope to backing companies in countries such as as Singapore, Indonesia and the Philippines, according to the statement.
Investing in technology startups is a “a strategic priority” for Vingroup as it transitions into a technology conglomerate, the company said in the statement. Vingroup has invested in numerous tech startups through its funds such as Vingroup Ventures and VinTech City funds, it said.
Vingroup, whose profits are driven by its real estate unit Vinhomes JSC, is the parent of EV maker VinFast Auto Ltd.
In 2021, Vietnam drew a record $2.6 billion funding for startups, up from $700 million a year prior, according to a joint report from Google, Temasek Holdings Pte and Bain & Co. But total capital invested in Vietnamese startups last year plunged to $529 million, placing it third among Southeast Asian countries, according to a separate report from Do Ventures and the Vietnam National Innovation Center.
Read: Asia Funds Create Alliance to Help Funnel Billions Into Vietnam
©2024 Bloomberg L.P.
