Vietnam aims to be a startup-friendly nation by 2020 and sees the proposed government venturing fund as a first step towards that goal.

Vietnam is set to establish a government venturing fund to co-invest with venture capital firms in domestic startups, DealStreetAsia reported yesterday.

The country, which hopes to be much more startup-friendly by 2020, will also overhaul its regulations around investment and small enterprises. The current legal framework does not account for angel investors and VC firms.

Dang Huy Dong, deputy minister of investment for the Vietnamese government who announced the plans, noted that the government’s fund would be just a first step towards building an ecosystem in the country. Once that ecosystem is fully established, the government plans on halting its own investments.

The government vehicle is expected to co-invest only, providing a maximum of 30% per funding round.

Approximately 20 foreign entities have voiced their interest in Vietnam, including IDG Ventures, the investment affiliate of media company International Data Group, CyberAgent Ventures, the corporate venturing division of internet company CyberAgent, and VC firm 500 Startups.

Vietnam had earlier contemplated an equity exchange platform for startups in June 2016, but decided that listing was not a viable solution to provide capital to early-stage businesses.