Canada-backed grant program aims to attract private investment in Vietnam's climate start-ups

Applications for the program’s first cohort of businesses opened right at the launch event.

The MGF is part of the ‘Accelerating Growth, Innovation, and Leadership for Enterprises’ (AGILE) project, which is managed by the Agency for Private Enterprise and Collective Economy Development (APED) under the Vietnamese Ministry of Finance and funded by Global Affairs Canada, the Canadian government department responsible for foreign affairs, international development, and humanitarian assistance.

Launched in February 2026 with a budget of CA$9.75 million (US$7.1 million), the project will run until 2029, according to Thoi Bao Tai Chinh Viet Nam (Vietnam Financial Times).

It seeks to strengthen Vietnam’s climate enterprise ecosystem, expand access to finance for innovative businesses, particularly those led by women, and enhance climate resilience among vulnerable communities through sustainable and inclusive growth.

According to AGILE representatives, the MGF differs from traditional grant programs by not only providing financial support to small businesses but also helping them attract private capital and additional financing.

Its goal is to help promising enterprises become investment-ready businesses capable of securing venture capital and commercial financing.

The MGF operates under a blended finance model that uses Canada’s ODA as catalytic capital to leverage private-sector investment.

The program targets a leverage ratio of 5:1, meaning each dollar of Canadian ODA is expected to mobilize approximately five dollars in private investment.

In addition to financial support, the MGF will provide technical assistance to help participating businesses strengthen their business models and demonstrate commercial viability.

The facility aims to support 56 climate-focused enterprises, prioritizing women-led businesses and companies committed to internationally recognized gender equality standards.

Speaking at the launch event, APED deputy director general Trinh Thi Huong said that shifting from traditional support mechanisms toward blended finance and other innovative financial instruments could unlock capital flows and reduce investment risks, encouraging businesses to enter green-growth sectors.

“From a policymaking perspective, APED expects the MGF initiative to generate valuable lessons that will help improve policies supporting businesses, promote innovation, enhance competitiveness, and accelerate the private sector’s green transition,” Huong said.

Francesca Bellone, head of cooperation at the Canadian Embassy in Vietnam, said the program is designed to help enterprises navigate the earliest stages of their development and become investment-ready.

Climate enterprises, particularly women-led businesses, are often viewed by investors as too risky, Bellone said, adding that the program was designed to address this challenge.

During a panel discussion held alongside the launch, representatives of investment funds operating in Vietnam outlined what they look for in climate-focused enterprises that are seeking funding.

Le Hoang Uyen Vy, managing director of Do Ventures, a Ho Chi Minh City-based venture fund supporting tech start-ups in Vietnam and Southeast Asia, said that in the early stages, when start-ups often have limited data to demonstrate their potential, the drive and commitment of founders can be the strongest indicators of long-term success.

She encouraged entrepreneurs who have previously been rejected by investors not to hesitate to make another pitch.

“As long as a company can demonstrate progress, even without generating revenue yet, investors are often willing to wait and reconsider,” she said.

She also advised founders to develop a thorough understanding of their value chains before meeting investors, noting that an inability to clearly explain them is one of the biggest concerns for investors to evaluate climate-focused businesses.

Likewise, companies that describe themselves as part of the circular economy but cannot clearly explain their production inputs and resource flows are often viewed as red flags, she added.