[Latest News] Vietnam Officially Recognizes Intellectual Property As Capital Contribution For Startups

Vietnam has taken a major step to modernize its startup and investment landscape with the introduction of Decree 210/2025/NĐ-CP, which will take effect on September 15, 2025.

This new legal framework allows startup investment funds to receive capital contributions not only in cash or land use rights but also in the form of intellectual property (IP), technology, and technical know-how. By officially recognizing intangible assets as valid capital, the decree opens the door for more innovative and IP-rich startups to attract investment without relying solely on traditional financial resources.

Alongside the reform, new operational guidelines for investment funds are also being introduced. These include clearer rules for how funds can invest, such as equity and convertible instruments, with safeguards like a 50% cap on a startup’s post-investment charter capital. The updated framework also defines how funds should manage idle capital, maintain separation from fund managers’ assets, and follow proper procedures for dissolution, including online filing and mandatory reporting. Importantly, funds registered before the new law takes effect will be partially exempt, but pending approvals must comply with the updated rules.

This reform represents a meaningful upgrade for Vietnam’s venture capital environment. By legitimizing IP as a form of capital contribution and tightening fund governance, the government is signaling stronger support for innovation-driven growth. It provides more legal certainty for both investors and startups, helping build trust and scale the ecosystem.