Australia has committed $10m to support climate-focused startups in Vietnam, in a move aimed at strengthening the country’s early-stage green investment ecosystem, VnEconomy writes.

The funding will go to Do Ventures Fund II and is designed to provide capital for Vietnamese businesses working in clean manufacturing, sustainable consumption and AI-driven climate solutions.

The Australian government announced the investment on May 26, describing it as a way to deepen climate-focused financing and attract greater private capital into Vietnam’s market.

It is the first commitment in Vietnam by Australian Development Investments (ADI).

The programme will support early- and growth-stage small and medium-sized enterprises, with a focus on scaling climate-related innovation.

Under the partnership, ADI will work with Do Ventures to improve climate investment capabilities, including environmental, social and governance (ESG) standards and impact measurement frameworks.

Officials said the aim is to help both the fund and its portfolio companies scale in a more sustainable way over time.

Vietnam accounts for around 40% of ADI’s existing investment portfolio.

Through five investment funds, ADI has backed 26 SMEs in Vietnam, helping to create 5,781 jobs.

It has also supported access to finance for 260,000 small entrepreneurs and the installation of 19.2 MW of new solar power capacity.