As the worldwide financial system transitions in the direction of a knowledge-based mannequin, science, know-how and innovation have grow to be decisive engines of nationwide development. In Vietnam, the 2025 Law on Science, Technology and Innovation is broadly considered as a strategic institutional framework for enhancing nationwide competitiveness whereas elevating the nation’s place in world worth chains.
Effective as of October 1 final yr, the Law on Science, Technology and Innovation (the Law) marks a elementary shift within the governance considering, aiming to create a extra dynamic surroundings that promotes deeper engagement by each the State and the enterprise group in strategic hi-tech industries, thereby producing new momentum for nationwide financial development.
With 73 articles organized in seven chapters, the Law is designed to stimulate innovation all through society, promote the commercialisation of analysis outcomes, improve authority decentralisation and autonomy, and strengthen linkages between analysis outcomes and the market. It additionally goals to make Vietnam’s innovation governance framework strategy worldwide practices and world tendencies.
The Law affirms science, know-how and innovation as core drivers of nationwide competitiveness, socio-economic growth, nationwide defence and safety upkeep, and enhancements in residents’ high quality of life. It supplies elementary ideas, together with science, know-how and innovation, innovation ecosystem, digital platform and nationwide information infrastructure. Besides, ideas for implementation are additionally set out in favour of sustainable growth and educational freedom, whereas upholding scientific integrity and selling worldwide integration.
For the primary time, innovation is formally enshrined in regulation on an equal footing with science and know-how. Innovation is outlined as a society-wide endeavour involving all organisations, enterprises and people, focusing on the creation or enchancment of merchandise, providers, enterprise fashions and administration processes as a way to enhance their added worth and socio-economic effectivity.
The Law promotes the great growth of an enterprise-centred innovation system, guaranteeing efficient linkages amongst companies, training and analysis establishments, middleman our bodies, state companies and the broader group.
Its regulatory scope is expanded to cowl new organisational fashions, progressive manufacturing mechanisms and innovation governance approaches in each public sector and personal sector. Activities comparable to assortment of community-based initiatives, innovation in public providers and software of digital applied sciences are formally recognised as integral elements of the nationwide innovation ecosystem.
Renewing state administration mindset
The Law represents a change within the state administration strategy, shifting from pre-licensing inspection to post-licensing inspection based mostly on efficiency evaluation somewhat than intervention in implementation processes, thereby strengthening autonomy and accountability for organisations, enterprises and people.
Under this framework, the Ministry of Science and Technology is liable for assessing the general outcomes of science and know-how programmes as a foundation for the allocation of monetary sources and project of analysis duties.
The Law introduces a regulatory sandbox, enabling new fashions, applied sciences and insurance policies to be piloted inside specified timeframes and restricted scopes, whereas offering authorized certainty for testing progressive and hi-tech initiatives previous to wider software.
A very noteworthy provision is the popularity of acceptable dangers in scientific analysis, technological growth and innovation. Accordingly, organisations and people are exempt from administrative and civil legal responsibility for any harm prompted to the State, supplied they’ve totally complied with law-specified procedures and haven’t engaged in fraud, intentional violations or misuse of funds. Penal legal responsibility is excluded for dangers arising from lawful analysis, testing and software of scientific and technological advances.
In phrases of possession and commercialisation of analysis outcomes, the Law grants organisations the correct to personal or use outcomes generated from the state budget-funded science, know-how and innovation tasks with out having to hunt extra approval, besides in particular circumstances. Researchers are entitled to no less than 30 % of revenue generated via the commercialisation of analysis outcomes, together with private revenue tax exemption or discount on such earnings.
The State commits to allocating annual funds funds for science, know-how and innovation equal to no less than 2 per cent of whole state funds spending, inside a minimal allocation of three per cent for science, know-how, innovation, and digital transformation. This proportion will likely be steadily elevated to satisfy growth wants, particularly for large-scale, interdisciplinary and inter-regional programmes and programmes having enterprises’ participation or spillover results in strategic and rising fields.
Importantly, the Law permits for versatile software of presumptive funding mechanisms based mostly on both finish outputs or particular process elements. Implementing organisations are granted better autonomy in the usage of funds and in altering expenditure gadgets.
As per the Law, the State adopts complete insurance policies to draw proficient individuals in science, know-how and innovation, together with monetary and non-financial incentives with preferential preparations for researchers’ working circumstances, housing and social welfare.
The Law underscores the State’s dedication to complete digital transformation in science, know-how and innovation via the synchronised growth of digital infrastructure, growth of on-line public providers, information 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 help of the administration, monitoring, analysis and disclosure of outcomes.
The nation is anticipated to construct extra nationwide key laboratories, shared-use analysis amenities and superior technical infrastructure, whereas strengthening connectivity amongst analysis institutes, larger training establishments and enterprises. Innovation infrastructure in industrial parks and hi-tech parks might also obtain the State’s monetary help.
Under the Law, all provinces and cities are granted better autonomy to design and implement programmes tailor-made to their native socio-economic circumstances. They are additionally permitted to ascertain provincial-level innovation funds, innovation centres and start-up help amenities, laying the groundwork for distinctive native innovation ecosystems aligned with regional strengths and growth potential.
– (VLLF)