Highlights

• The fund’s objective is to propel sustainable agriculture, circular economy, and new energy technologies in Vietnam and Southeast Asia.
• Touchstone’s climate-tech portfolio expands to China, Japan, Malaysia, and neighbouring countries.

Touchstone Partners, a Southeast Asia venture capital (VC) firm, has launched a $10 million Green Transition Fund, a move aimed at climate-innovation growth in Vietnam and Southeast Asia.

The fund’s object is to give teeth to sustainable agriculture, the circular economy, waste management, and new energy technologies, forming a regional push for solutions linked to the green economy.

According to the firm, capital deployment begins in December 2025, with startups gaining access to Touchstone’s advisory network for guidance as they enter early-stage development.

Read More: VC Giants Join Forces to Scale Climate Tech Startups

Since 2021, Touchstone Partners has shaped the climate-technology space in Asia through its investment portfolio, which includes Selex Motors, Stride, Alterno, Enfarm, Neorice, and Forte Biotech.

These companies have grown into markets such as China, Japan, Indonesia, Malaysia, the Philippines, and Thailand. Their progress shows the pace of climate-tech expansion in the region and reinforces the momentum of small and medium-sized enterprises and farmers pursuing sustainability.

The firm’s involvement with organisations such as the Temasek Foundation, P4G, and the Global Green Growth Institute has helped its portfolio attract $3 million in catalytic funding between 2023 and 2025.

According to the announcement, the new Green Transition Fund continues a blended-finance direction, combining grants with venture capital. This structure reduces risk for investors and strengthens startups through non-dilutive funding tied to performance.

Also Read: Victoria Invests $75M in Climate-Tech and Female-Led Startups

Vietnam has drawn attention for its climate innovations and entrepreneurial activity. In 2023, Touchstone Partners joined the Temasek Foundation to introduce the Net Zero Challenge, a programme supported by the Ho Chi Minh City Institute for Development Studies (HIDS). Over three years, the initiative received more than 1,600 startup submissions from 60 countries and territories.

Agriculture stands at the centre of Southeast Asia’s economic and emissions profile. The sector accounts for 30 percent of jobs, 54 percent of emissions, and 31 percent of land use.

A Project Drawdown study conducted with the Asia Philanthropy Circle notes that Vietnam’s top priorities sit in rice cultivation and in turning agriwaste into high-value products. These findings align with national discussions on sustainable development.

Vietnam’s climate direction found a launchpad in its COP26 pledge to reach net-zero emissions by 2050. Ho Chi Minh City implemented Resolution 98, which created flexibility for the city to test green measures. National frameworks also emerged to encourage climate resilience, promote green urban planning, and stimulate low-carbon economic growth from the private sector. These measures are the policy foundation for Vietnam’s transition to a climate-resilient economy.

See Also: Barclays’ Climate Arm to Invest £500m in Climate Tech by 2027

Touchstone Partners concludes that Vietnam and Southeast Asia face pronounced climate pressures, yet the region shows momentum in advanced agriculture, adaptation innovations, and entrepreneurial activity.

The public sector and major business groups, says General Partner Tu Ngo, recognise the importance of developing a green economy, which places the region at a turning point in its sustainability path.

Ends/

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Source: tnglobal