The Australian Government has committed up to $10 million to Do Ventures' Fund II, a significant move to bolster climate-focused startups in Vietnam. This investment, channeled through Australian Development Investments (ADI), aims to accelerate the country's energy transition and climate adaptation efforts. The commitment marks ADI's first under its dedicated Vietnam investment window, signaling a deepened partnership between the two nations.
A Strategic Partnership for Climate Innovation
The funding will specifically target early and growth-stage small and medium enterprises pioneering sustainable solutions. Key sectors include advanced manufacturing, sustainable consumption, and the application of artificial intelligence to climate challenges. This strategic allocation is designed to strengthen Vietnam’s climate investment market and attract additional private finance for green technologies.
Australia’s Ambassador to Vietnam, H.E. Gillian Bird, emphasized that Australia is a trusted partner in supporting the nation's climate goals. This significant commitment is expected to act as a catalyst, drawing more private capital into the sector. The ultimate goal is to drive the development and scaling of innovative climate solutions throughout Vietnam.
Empowering Local Entrepreneurs and Gender Equity
Do Ventures, a prominent woman-led venture capital firm established in 2020, will manage the deployment of these funds. General Partner Vy Le stated the capital allows the firm to expand its portfolio of climate investments and back more Vietnamese founders. This support is crucial for enabling local startups to scale their positive environmental impact.
This investment also strategically addresses gender disparities within the venture capital landscape. By backing a woman-led firm, the initiative helps challenge the industry norm where women hold only 11 percent of senior investment roles in emerging markets. It underscores a commitment to fostering inclusive economic growth alongside climate action.
Building on a Foundation of Impact
This new commitment builds upon ADI's substantial existing presence in the region, with Vietnam already representing 40 percent of its global portfolio. The Australian Government's AU$250 million impact investment fund has a proven track record of mobilizing private investment. Its focus remains on delivering measurable climate and gender outcomes at scale.
Through five previous investment funds, ADI has already supported 26 Vietnam-based SMEs, contributing to the creation of over 5,700 jobs. Its initiatives have also improved access to finance for 260,000 small entrepreneurs. Furthermore, these investments have facilitated the installation of 19.2 megawatts of new solar capacity.
The partnership extends beyond financial capital to include technical assistance and capacity building. ADI will collaborate with Do Ventures to strengthen its climate investment capabilities, including environmental, social, and governance (ESG) practices. This holistic support ensures the long-term sustainable growth of the portfolio companies.
This $10 million commitment from the Australian Government to Do Ventures represents a pivotal moment for Vietnam's climate technology ecosystem. The collaboration is set to unlock significant private capital, fostering innovation in critical sectors for a sustainable future. Ultimately, this strategic partnership will accelerate Vietnam's journey toward a resilient and low-carbon economy.