With a total capital of US$3 million, the fund aims to support proposals for new business models for poor people from the private sector. The VCF’s evaluation board will consider the projects within an acceptable funding range of between US$30,000 to US$250,000.

DFID Chief Representative in Vietnam Fiona Lappin said that, the VCF will help reduce economic risks, generate jobs and increase income for poor people. Ayumi Konishi, ADB director general in Vietnam said the fund will help poor people turn a profit from the market rather than getting direct support from the state.

Deputy Minister of Planning and Investment Nguyen The Phuong said the MPI will co-ordinate with ADB and DFID to fulfil the goals of developing the private sector and reducing poverty.

The VCF will operate for two years (2009-2011).