Vietnamese
As the global economy transitions towards a knowledge-based model, science, technology and innovation have become decisive engines of national growth. In Vietnam, the 2025 Law on Science, Technology and Innovation is widely viewed as a strategic institutional framework for improving national competitiveness while raising the country’s position in global value chains.
Effective as of October 1 last year, the Law on Science, Technology and Innovation (the Law) marks a fundamental shift in the governance thinking, aiming to create a more dynamic environment that promotes deeper engagement by both the State and the business community in strategic hi-tech industries, thereby generating new momentum for national economic growth.
With 73 articles arranged in seven chapters, the Law is designed to stimulate innovation throughout society, promote the commercialisation of research outcomes, enhance authority decentralisation and autonomy, and strengthen linkages between research outcomes and the market. It also aims to make Vietnam’s innovation governance framework approach international practices and global trends.
Elevating the role and status of science, technology and innovation
The Law affirms science, technology and innovation as core drivers of national competitiveness, socio-economic development, national defence and security maintenance, and improvements in citizens’ quality of life. It provides fundamental concepts, including science, technology and innovation, innovation ecosystem, digital platform and national data infrastructure. Besides, principles for implementation are also set out in favour of sustainable development and academic freedom, while upholding scientific integrity and promoting international integration.
For the first time, innovation is formally enshrined in law on an equal footing with science and technology. Innovation is defined as a society-wide endeavour involving all organisations, enterprises and individuals, focusing on the creation or improvement of products, services, business models and management processes in order to increase their added value and socio-economic efficiency.
The Law promotes the comprehensive development of an enterprise-centred innovation system, ensuring effective linkages among businesses, education and research institutions, intermediary bodies, state agencies and the wider community.
Its regulatory scope is expanded to cover new organisational models, innovative production mechanisms and innovation governance approaches in both public sector and private sector. Activities such as collection of community-based initiatives, innovation in public services and application of digital technologies are formally recognised as integral components of the national innovation ecosystem.
Renewing state management mindset
The Law represents a change in the state management approach, shifting from pre-licensing inspection to post-licensing inspection based on performance assessment rather than intervention in implementation processes, thereby strengthening autonomy and accountability for organisations, enterprises and individuals.
Under this framework, the Ministry of Science and Technology is responsible for assessing the overall outcomes of science and technology programmes as a basis for the allocation of financial resources and assignment of research tasks.
The Law introduces a regulatory sandbox, enabling new models, technologies and policies to be piloted within specified timeframes and limited scopes, while providing legal certainty for testing innovative and hi-tech initiatives prior to wider application.
A particularly noteworthy provision is the recognition of acceptable risks in scientific research, technological development and innovation. Accordingly, organisations and individuals are exempt from administrative and civil liability for any damage caused to the State, provided they have fully complied with law-specified procedures and have not engaged in fraud, intentional violations or misuse of funds. Penal liability is excluded for risks arising from lawful research, testing and application of scientific and technological advances.
In terms of ownership and commercialisation of research outcomes, the Law grants organisations the right to own or use outcomes generated from the state budget-funded science, technology and innovation projects without having to seek additional approval, except in special cases. Researchers are entitled to at least 30 percent of income generated through the commercialisation of research outcomes, along with personal income tax exemption or reduction on such earnings.
The State commits to allocating annual budget funds for science, technology and innovation equal to at least 2 per cent of total state budget spending, within a minimum allocation of 3 per cent for science, technology, innovation, and digital transformation. This proportion will be gradually increased to meet development needs, especially for large-scale, interdisciplinary and inter-regional programmes and programmes having enterprises’ participation or spillover effects in strategic and emerging fields.
Importantly, the Law allows for flexible application of presumptive funding mechanisms based on either end outputs or specific task components. Implementing organisations are granted greater autonomy in the use of funds and in changing expenditure items.
As per the Law, the State adopts comprehensive policies to attract talented people in science, technology and innovation, including financial and non-financial incentives with preferential arrangements for researchers’ working conditions, housing and social welfare.
The Law underscores the State’s commitment to comprehensive digital transformation in science, technology and innovation through the synchronised development of digital infrastructure, expansion of online public services, data digitisation and automation of operational processes. Investment is prioritised for the National Digital Platform for Science, Technology and Innovation Management and the National Information System on Science, Technology and Innovation, in support of the management, monitoring, evaluation and disclosure of outcomes.
The country is expected to build more national key laboratories, shared-use research facilities and advanced technical infrastructure, while strengthening connectivity among research institutes, higher education institutions and enterprises. Innovation infrastructure in industrial parks and hi-tech parks may also receive the State’s financial support.
Under the Law, all provinces and cities are granted greater autonomy to design and implement programmes tailored to their local socio-economic conditions. They are also permitted to establish provincial-level innovation funds, innovation centres and start-up support facilities, laying the groundwork for distinctive local innovation ecosystems aligned with regional strengths and development potential.
- (VLLF)
