New Science-Technology Law Set to Boost Vietnam’s Competitiveness in the Global Era
Hanoi, Vietnam – Starting October 1, 2025, Vietnam will usher in a transformative phase in its science, technology, and innovation landscape with the implementation of the newly enacted Law on Science, Technology, and Innovation. Designed to propel the nation’s knowledge-based development, this legislation introduces groundbreaking reforms aimed at accelerating economic growth and enhancing Vietnam’s competitive position on the global stage.
Breaking Institutional Barriers to Innovation
Deputy Minister of Science and Technology Le Xuan Dinh emphasized that the new law aligns with the Politburo’s Resolution No. 57-NQ/TW, which focuses on developing science, technology, innovation, and national digital transformation. This legal framework reflects a strong governmental commitment to dismantle longstanding institutional obstacles that have impeded scientific and technological progress.
A landmark feature of the law is the elevation of innovation to an equal footing alongside science and technology. Unlike science and technology, which primarily involve creating and advancing knowledge and new technologies, innovation covers the entire process—from initial ideation and experimentation to commercialization—actively involving the broader society. This holistic approach represents a significant shift in Vietnam’s science policy.
Another notable introduction is the formal institution of the “sandbox” mechanism. This provision allows new models and technologies to be trialed in controlled, limited environments to manage risks effectively before widespread application or scaling up.
Empowering Enterprises and Encouraging Investment
Under the new law, enterprises are positioned as central actors within the science, technology, and innovation ecosystem. Businesses are encouraged to invest in research and development (R&D) not only through their internal funds but also by leveraging state support mechanisms based on the seed capital principle. Recognizing the importance of corporate engagement, the law stipulates that R&D expenditures can be treated as deductible production and business costs, providing a strong fiscal incentive for private sector involvement.
Deputy Minister Dinh described this as a bold step designed to turn businesses into major drivers of innovation and technological advancement.
Furthermore, the law grants ownership rights of research outcomes funded by state budgets to the organizations conducting the research. This critical change aims to streamline commercialization while ensuring transparency and integrity in intellectual property management.
Strategic Focus and Role of Universities
Vietnam’s strategy under this new legal regime prioritizes the mastery and development of strategic technologies, concentrating investments in vital sectors such as artificial intelligence, renewable energy, biomedicine, and digital technology. Universities are envisaged to evolve into hubs for research innovation and high-quality human resource training, aligning academic activities with contemporary and future market demands.
Minister of Science and Technology Nguyen Manh Hung highlighted that the law encapsulates the Party and State’s vision while charting a precise roadmap to realize the goal of building a prosperous, knowledge-driven nation.
From Experimental Sandboxes to Global Markets
The law creates a comprehensive legal environment to nurture innovation, strengthen the linkage between research institutions and markets, and promote the global competitiveness of “Made in Vietnam” technologies.
With post-audit mechanisms and sandbox trials, emerging fields such as AI, blockchain, digital health, and education technologies can undergo safe, structured experimentation before broader implementation.
By assigning research ownership rights directly to institutions, the legislation encourages stronger collaborations between scientists and commercial enterprises, effectively closing the gap between laboratory discoveries and market applications. Institutionalization of technology exchanges, transfer support agencies, and intellectual property valuation mechanisms further enhances the ecosystem’s transparency and efficiency, facilitating successful commercialization.
Driving Comprehensive Digital Transformation
A key highlight of the law is its emphasis on nationwide digitalization. The establishment of national databases and digital platforms will link government authorities, research bodies, and private sector companies, while promoting private contribution of data — a critical foundation for building a knowledge economy.
On the local level, the law empowers provincial and municipal authorities to form innovation funds, startup and innovation support centers, and to implement specialized programs suited to their unique resources and potentials, fostering diversified and dynamic regional innovation ecosystems.
Context and Outlook
Vietnam’s new science-technology law arrives amid a broader governmental thrust to elevate the country’s innovative capacity. Recent policies, such as Decree No. 249/2025/ND-CP, have been introduced to attract top scientific and technological experts to the country, while administrative reforms simplify procedures in the science-technology sector.
In addition, Vietnam’s innovation performance as measured by the Global Innovation Index has steadily improved, rising to 44th place in 2025 and aiming for top 40 by 2030. The World Intellectual Property Organization has recognized Vietnam’s remarkable progress in innovation and its potential for further socio-economic transformation through science and technology.
As Vietnam implements this new legal framework, the nation stands poised to harness science, technology, and innovation as key levers for its sustainable development and enhanced integration into global value chains.
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