Addressing teh Evolving Needs of a Digital Economy

Recognizing the transformative power of digital technologies, Vietnam is prioritizing the advancement of science, technology, and innovation. The existing legal framework, established in 2013, is being updated to align with the rapid pace of technological change and to support the nation’s digital change agenda. This update is not merely a revision but a strategic overhaul to ensure Vietnam remains competitive in the global arena.

The current law on science and technology, while foundational, has shown its age. Socio-economic development now demands a growth model fueled by highly skilled human capital and driven by scientific and technological innovation. The updated law seeks to rectify imbalances, such as the disproportionate allocation of resources towards knowledge generation at the expense of knowledge request.

Key Components of the Draft Law

The draft law on science, technology, and innovation, comprising 8 chapters and 95 articles, represents a considerable revision of the existing legislation. It encompasses a wide range of topics, including:

• General provisions
• Organizational structure and implementation
• Financial investments and infrastructure development
• Information management
• International cooperation
• State management responsibilities
• Human resources development in science, technology, and innovation

Furthermore, the draft law introduces novel concepts and enhancements, such as increased autonomy and personal obligation for individuals and organizations engaged in scientific and technological endeavors. It also aims to streamline financial processes by reducing the burden of flat-rate financing tenders and facilitating investments in innovative ventures.

Financial Innovations: Funds for Growth

A significant addition to the legal framework is the provision for establishing an innovation fund and a national risk capital fund. These funds, previously absent from the science and technology law, are designed to provide crucial financial support for startups and innovative projects, fostering a more vibrant and dynamic innovation ecosystem. According to a recent report by the Ministry of Planning and Investment, venture capital investment in Vietnam’s tech startups reached a record high of $1.5 billion in 2024, highlighting the growing demand for such financial mechanisms.

Overcoming Existing Limitations

The updated law directly addresses several limitations of the current framework. These include:

• Outdated regulations that fail to reflect the latest technological advancements, such as the Internet of Things (IoT), virtual reality, artificial intelligence (AI), and cloud computing.
• Inadequate mechanisms for recruiting, training, and developing highly qualified workers in the science and technology sectors.
• Insufficient support for knowledge application programs, hindering the translation of research into practical applications.

The emergence of technologies like Chat GPT and Deepseek presents both opportunities and challenges. the new law aims to create a regulatory environment that encourages innovation while mitigating potential risks.

expert Perspectives

Professor Dr. NGO Quoc Anh, director of the Institute of Chemistry at the Vietnamese Academy for Science and Technology, emphasizes the timeliness and necessity of the law’s amendment. He believes it will address existing shortcomings, remove obstacles, and create a more favorable legal environment for scientists and scientific organizations. He also highlights the importance of incorporating innovation as a key pillar alongside science, technology, and digital transformation, as affirmed in Resolution No. 57-NQ/TW of the Politburo.

The process of amendment to the law aims to remedy the defects and restrictions that have occured since the law came into force and at the same time remove difficulties and obstacles to create a cheaper legal environment for the activity of scientists and scientific-technical organizations.
Professor Dr.NGO Quoc Anh, Director of the institute of Chemistry at the Vietnamese Academy for Science and Technology

Ensuring Effective Implementation

To ensure the effective implementation of the updated law, it is crucial to institutionalize Resolution No. 57-NQ/TW of the Politburo, Resolution no.193/2025/QH15 of the National Assembly,and resolution No. 03-NQ/CP,along with their associated legal documents. This includes establishing mechanisms for mobilizing resources from across society, identifying and addressing challenges promptly, and refining the legal system. Furthermore, research is needed on regulations for exemption from civil liability in the research and testing of new technologies.

The amendment of the science and technology law must be coordinated with related laws on tenders, investments, education, and civil servants. Building a robust innovation ecosystem and establishing mechanisms to support technology transfer and the commercialization of research results are also essential.