Touchstone Partners has unveiled a new US$10 million Green Transition Fund at the Grand Finale of the Net Zero Challenge 2025, marking a major boost for climate-tech innovation in Vietnam and Southeast Asia.
The firm said the fund will begin deployment in December, targeting startups working in sustainable agriculture, the circular economy, waste management and new energy tech.
The initiative aims to strengthen the region’s fast-developing climate-innovation landscape. Each funded startup will receive capital alongside hands-on coaching and strategic guidance from Touchstone Partners and its international advisory network.
Since 2021, Touchstone Partners has positioned itself at the forefront of climate-tech investment, backing notable companies such as Selex Motors, Stride, Alterno, Enfarm, Neorice and Forte Biotech.
According to the firm, this portfolio has “consistently outperformed while supporting Vietnamese SMEs and farmers to leapfrog to sustainability,” showcasing what it calls the “high-impact, high-return” potential of the new green economy. Several of its investees — including Alterno, Enfarm and Forte Biotech — have expanded into markets such as China, Japan, Indonesia, Malaysia, the Philippines and Thailand.
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Beyond equity investment, Touchstone Partners works closely with major international grant-making organisations, such as the Temasek Foundation, P4G, and the Global Green Growth Institute.
Between 2023 and 2025, startups within its climate-tech portfolio secured more than US$3 million in catalytic funding through these collaborations. The new Green Transition Fund aims to deepen such partnerships, offering blended finance packages that combine non-dilutive grants with targeted investment to help investors de-risk and startups scale responsibly.
The fund’s launch comes amid a surge in global and local interest in Vietnam’s climate innovation potential. Since 2023, Touchstone Partners and Temasek Foundation have co-hosted the Net Zero Challenge — supported by the Ho Chi Minh City Institute for Development Studies — attracting over 1,600 startup submissions from 60 countries and territories.
Agriculture remains a critical sector for Southeast Asia, accounting for 30 per cent of jobs, generating 54 per cent of the region’s emissions and using 31 per cent of its land. A recent Project Drawdown assessment found Vietnam’s greatest opportunities lie in improving rice production and converting agricultural waste into value-added products.
Vietnam’s policy landscape is also shifting. Following the country’s pledge at COP26 to reach net-zero emissions by 2050, Ho Chi Minh City implemented Resolution 98 to pilot special mechanisms that accelerate green initiatives. National frameworks now aim to enhance climate resilience, strengthen urban planning and foster low-carbon growth driven by the private sector.
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“While most impacted by climate change, Vietnam and Southeast Asia also flourish with advanced agriculture and adaptation innovations … We’re standing at a turning point in our sustainability journey,” said Ms Tu Ngo, General Partner at Touchstone Partners.
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Image Credit: Touchstone Partners
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