Hanoi (VNA) – The Law on Science, Technology, and Innovation will take effect from October 1, ushering in a new chapter in the country’s knowledge-driven development. With breakthrough reforms, it is expected to become a motive to accelerate growth and improve national competitive edge in the era of global integration.
Removing bottlenecks
Deputy Minister of Science and Technology Le Xuan Dinh said that the law, incorporating the Politburo’s Resolution No.57-NQ/TW on developing science – technology, innovation, and national digital transformation, signals a strong determination to remove institutional barriers that have long hindered sci-tech development.
For the first time in Vietnamese legislation, innovation is elevated to equal status with science – technology. While science and technology focus on studying and developing new knowledge and technologies, innovation encompasses the entire journey from initial concepts through experimentation to commercialisation, engaging society as a whole in the process.
Notably, “sandbox” mechanism is institutionalised, allowing, allowing new models and technologies to be tested within controlled environments to minimise risk before scaling up.
Enterprises are placed at the heart of the law and are encouraged to invest in research and development (R&D) activities not only through their own resources but also with State support following the seed capital principle. Spending on R&D is counted as production and business costs and is tax-deductible. Dinh described this as a bold step to make business a major driver of the science-technology and innovation ecosystem.
Additionally, ownership rights to research results funded by state budget are now transferred to the hosting organisations, helping facilitate commecialisation while ensuring transparency in intellectual property management.
The law also prioritises mastering strategic technologies, concentrating investment in critical fields including AI, renewable energy, biomedicine, and digital technology. Universities are envisaged to become centres for research, innovation, and high-quality human resources training, meeting requirements in the new period.
Minister of Science and Technology Nguyen Manh Hung stressed that the law not only concretises the Party and State’s viewpoints but also a blueprint for an aspiration to build a prosperous knowledge-based nation.
From sandbox to market
The legislation is said to create a comprehensive legal corridor that fosters innovation, strengthens the link between research and the market, and brings more competitive “Made in Vietnam” technologies to global value chains.
Post-audit mechanisms and sandbox trials will enable safe experimentation with emerging fields such as AI, blockchain, digital health, and digital education before mass adoption.
By assigning research ownership rights to institutions, the law encourages closer collaboration between scientists and enterprises, bridging the gap between laboratory and marketplace. Furthermore, such mechanisms as technology exchanges, transfer support centres, and intellectual property valuation are now institutionalised, forming a transparent and effective commercialisation ecosystem.
Promoting comprehensive digitalisation is a highlight of the law. National databases and digital platforms will connect government agencies, research institutes, and businesses, while encouraging private sector to contribute data, an essential foundation for a knowledge economy.
At local level, the law empowers cities and provinces to establish innovation funds and startup and innovation support centres and implement special programmes to shape up their own innovation ecosystem that is aligned with their potential./.
VNA
