Building a multi-tier fund construction
Resolution No. 57-NQ/TW of the Politburo defines fund-based mechanisms because the core monetary software for advancing science, expertise and innovation. Under the decision, State price range funding for analysis and improvement is prioritised for allocation by means of funds, alongside reforms in monetary administration, expanded autonomy, streamlined procedures, and acceptance of the dangers and time lags inherent in analysis actions. It additionally calls for the institution of enterprise capital funds and science and expertise improvement funds to steer, mobilise and unlock social resources for innovation.
Translating Resolution No. 57 into regulation, the 2025 Law on Science, Technology and Innovation, along with Decree No. 265/2025/ND-CP, introduces a multi-tier fund mannequin. The Vietnam National Foundation for Science and Technology Development (NAFOSTED) acts as a central-level monetary instrument, tasked with financing and commissioning programmes, tasks and scientific and technological missions for analysis and improvement, whereas supporting efforts to strengthen nationwide science and expertise capability. At the identical time, science, expertise and innovation improvement funds on the ministerial, sectoral and native ranges function nearer to real-world wants, specializing in commissioning, financing and supporting duties aligned with the event priorities of every sector and locality, in addition to selling expertise software, switch, innovation and the expansion of innovation ecosystems, significantly for small and medium-sized enterprises.
Notably, the 2025 Law on Science, Technology and Innovation and Decree No. 264/2025/ND-CP set up, for the primary time, a authorized framework for a nationwide enterprise capital fund and native enterprise capital funds, enabling the State to co-invest alongside the personal sector in modern start-ups. This transfer is broadly seen as a major breakthrough, signalling a shift from administrative help in the direction of market-oriented funding with managed danger.
Under this framework, the nationwide enterprise capital fund will make investments and co-invest in modern start-ups, spend money on different funds, and help the event of the nationwide start-up ecosystem. The fund will likely be capitalised by the State price range and might also obtain sponsorships, grants and different lawful funding sources. The mannequin underscores the State’s position as a supplier of “seed capital”, serving to to construct confidence and generate momentum to appeal to social capital into high-potential however high-risk innovation tasks. Crucially, the fund is now not sure by annual or project-based capital preservation necessities, as was the case underneath earlier rules. The regulation additionally permits localities to proactively set up their very own enterprise capital funds, tailor-made to native circumstances and improvement wants, to help start-ups linked to regional and sectoral strengths.
Early implementation wanted to increase resources
Reviewing greater than a yr of implementing Resolution No. 57, Dr Nguyen Quan, former Minister of Science and Technology, harassed the necessity to swiftly set up and operationalise science, expertise and innovation improvement funds throughout ministries and sectors.
In the previous, round 20 provinces and cities had arrange native science and expertise improvement funds. However, many later stalled after being labeled as off-budget monetary funds, receiving solely one-off preliminary capital with out annual replenishment. With beginning capital typically restricted to only a few billion VND, many funds struggled to keep their capital base after a number of years of financing scientific and technological tasks, and a few had been ultimately dissolved due to depleted resources. Resolution No. 57 and the Law on Science, Technology and Innovation have addressed this bottleneck by introducing mechanisms for annual capital injections to make sure the sustainability of fund operations. Experts stress that, drawing on earlier expertise, ministries, sectors and localities ought to shortly set up new funds or restructure current ones, treating them as a cornerstone monetary software for shifting decisively in the direction of commissioning and financing science and expertise duties.
Regarding enterprise capital funds, Hanoi is presently the one locality to have established one. Experts word that modern start-ups require early-stage capital to take a look at and refine merchandise, adopted by considerably bigger funding throughout the commercialisation section. Dependence solely on the State price range makes it troublesome to foster globally aggressive enterprises. The improvement of enterprise capital funds is due to this fact seen as important to unlocking social resources for innovation. Through its position as a “seed investor” and market information, the State can’t solely create preliminary momentum but additionally present a authorized basis that provides personal buyers greater confidence. Pilot implementation is thus wanted to steadily refine the authorized framework for enterprise capital funds, make clear profit-sharing mechanisms, and construct investor belief earlier than scaling up the mannequin to appeal to broader social funding.
A consultant of Mobile Service JSC (M-Service) famous that entry to capital is a decisive issue for enterprise progress. Alongside current help insurance policies, the State wants to swiftly create extra room for enterprise capital flows, an method broadly adopted by developed economies to nurture innovation ecosystems and produce high-growth enterprises.
Deputy Minister of Science and Technology Hoang Minh mentioned that after a interval centered on creating and finishing the authorized framework, consideration from 2026 will shift in the direction of implementation. Through fund-based mechanisms, the State will fee options to concrete, real-world challenges, with a concentrate on main and urgent points in socio-economic improvement./. VNA