Institutional and policy barriers
According to some experts, Viet Nam’s current legal system is not yet synchronous and unified, therefore many incentive mechanisms are not fully effective. Regulations on investment and finance for science, technology, and innovation are still inadequate and not suitable for the characteristics of high-tech activities.
For example, although the law allows enterprises to use part of their profits to establish a science and technology development fund, the procedures for using this fund are complex, thus deterring businesses from boldly investing in research and development (R&D)
In addition, when accessing the state's research and innovation support programs, enterprises often encounter obstacles in administrative procedures, wasting time and market opportunities. The use of science and technology development funds by enterprises is also not flexible due to cumbersome regulations.
According to Vu The Phiet, Chairman of Viet Nam Airports Corporation, the government is drafting a decree on removing development investment funds and science and technology funds, including provisions regarding 3% of pre-tax profit. Enterprises hope that this decree will soon be issued to create a premise for enterprises’ growth of revenue and profit in the coming time.
Experts also said that there is still a lack of regulations or sandbox mechanisms for enterprises to boldly implement new ideas. Some regulations in the Law on Bidding and the Law on Investment are unclear, and there are still legal barriers in investment and bidding procedures.
Dr Tran Van Khai, a National Assembly (NA) deputy and full-time member of the NA's Committee on Science, Technology and Environment, said that the Law on Bidding and the Law on Investment have specific and clear regulations on investment and bidding procedures. However, it takes a lot of time for businesses to implement them.
In addition, the requirements on financial capacity and experience in bidding regulations can also be barriers for small and medium-sized enterprises.
Nguyen Anh Tuan, General Director of Vietnam Electricity (EVN), said that although he wants to cooperate with major technology firms such as Viettel, VNPT, and FPT to carry out digital transformation, EVN is still stuck because of unclear regulations in the Law on Bidding and the Law on Investment.
Turning institutions into competitive advantages
Resolution 57-NQ/TW of the Politburo affirms that it is necessary to "urgently and resolutely perfect institutions; eliminate all ideas, concepts, and barriers hindering development; and turn institutions into a competitive advantage" in science and technology development and innovation. In that spirit, the NA quickly passed Resolution 193/2025/QH15 to pilot special mechanisms and policies to realise the breakthrough policy in 2025.
Dr Tran Van Khai said that it is necessary to complete the comprehensive and timely legal and policy framework. This is a fundamental solution.
The state needs to promptly review, amend and synchronously supplement laws and regulations related to science and technology, investment, and finance such as the Law on Science and Technology, the Law on High Technology, the Law on Investment, the Law on Bidding, and the Law on Taxes. The goal is to immediately remove bottlenecks and barriers, thereby unlocking all available resources for innovation.
He also proposed that it is necessary to boldly apply the sandbox mechanism and accepting risks in science and technology management; strengthen the role of enterprises and the community in policy implementation. Technology enterprises, for their part, must enhance governance capabilities, transparency, and innovation to be worthy of the trust and empowerment of the state.
Close coordination among the “three pillars” of the state, scientists, and enterprises, according to Resolution 57-NQ/TW of the Politburo, will create a favourable innovation ecosystem, in which enterprises play a central role and receive maximum institutional support.
According to Deputy Minister of Science and Technology Le Xuan Dinh, enterprises must continuously improve labour productivity to develop, and they must innovate to achieve breakthroughs.
These policies will be institutionalised in draft laws that the government is currently directing the Ministry of Science and Technology and other ministries and branches to comprehensively revise.
The Deputy Minister said that Resolution No. 193 of the NA has affirmed the adjustment of tax policies for enterprises and individuals engaged in science and technology activities, as well as corporate sponsorships for scientific research, technology development, and innovation, while noting that expenditures for science and technology and innovation will be deducted when calculating taxable income for enterprises.
