Creating institutional breakthroughs for national innovation ecosystem

Within this framework, the science and technology market needs appropriate regulations to operate more effectively and become a genuine driver of innovation.

Leading role of the state

The draft Law on Science, Technology and Innovation states that one of the policies in science, technology and innovation activities is to "develop and perfect the science and technology market; encourage the commercialisation of research results and technology transfer; and create conditions for enterprises to increase investment in science, technology and innovation."

This is an important step in terms of policy, showing that the state not only considers the science and technology market as an inevitable consequence of research, but also a sector requiring proactive institutional development because the science and technology market plays a key role in the national market system, and needs to be designed with its own transparent "rules of the game" to lead economic growth in the high-tech era.

However, many opinions said that the draft law should establish a comprehensive institutional legal framework for the science and technology market, including specific regulations on intermediary organisations, transaction mechanisms, valuation processes, and digital infrastructure to ensure the market operates in a substantive and efficient manner.

In fact, although the state invests thousands of billions of VND each year in scientific research, the number of technologies brought to market, priced, traded or applied in practice, remains limited. Most research results after acceptance remain in the laboratory due to lack legal mechanism or market to transform them into commercial products.

On the other hand, the nature of the technology market is fundamentally different from conventional goods markets, making it impossible to form and develop without strategic intervention of the state. This market also faces an imbalance of information, awareness and qualifications between the suppliers (scientists) and buyers (enterprises), resulting in high transaction costs and great risks. In such conditions, the lack of a clear and transparent legal framework makes parties even more hesitant to participate in the market.

Another weakness is the limited system of intermediary organisations in Viet Nam’s technology market. Although technology exchanges have been established in Ha Noi, Ho Chi Minh City, Da Nang, Hai Phong, and other cities, recent statistics show that only about 5% of technology transactions take place through these exchanges, with the rest conducted via bilateral agreements. The reason for this is that these intermediaries lack the capacity to effectively fulfil their market role; they are not professional in service provision and have not yet earned the full trust of suppliers and buyers. Currently, these exchanges mainly provide training services, offer information on industrial property, and support the organisation of annual events and exhibitions.

State support policies also remain fragmented and disconnected along the chain. Existing commercialisation funding programmes only support individual research tasks, lacking mechanisms to assist post-research phases to introduce products to market. Meanwhile, few enterprises have adequate capacity and resources to independently perfect lab-scale technologies, register intellectual property rights, or conduct valuations. Therefore, a market without effective post-research support cannot develop.

The technology market is also a tool for regulating public investment and connecting the state, enterprises, and research institutes. Without a functioning market, the state cannot properly assess the effectiveness of research investments, identify which technologies are genuinely in social demand, or guide enterprises in technological innovation.

Market needs "rules of the game"

To address existing shortcomings in the science and technology market, on October 5, 2023, the Prime Minister issued Directive No. 25/CT-TTg on developing a synchronised, effective, modern, and integrated science and technology market. This directive aims to position the science and technology market as a foundational platform for promoting national innovation, with specific requirements to improve institutions, build infrastructure, and develop intermediary organisations to ensure smooth connectivity between technology supply and demand.

On December 29, 2023, the National Assembly’s Committee for Science, Technology and Environment issued a report on monitoring the implementation of policies and laws for the science and technology market development for the period of 2018–2022. The report put forward proposals for the National Assembly to consider a comprehensive revision of the Law on Science and Technology and the Law on Technology Transfer. It also called on the government to promptly finalise and submit the dossier for amendments to the 2013 Law on Science and Technology to the National Assembly, including provisions on the science and technology market development that clearly define scope, stakeholders, responsibilities, and authority. Resolution No. 57-NQ/TW also emphasises the need to perfect institutions, promote the commercialisation of research results, and develop science and technology enterprises and venture capital funds, that are key factors of the technology market.

These documents reflect a consistent direction in building a comprehensive legal framework for the science and technology market.

According to experts, affirming the role of the science and technology market is necessary, but it will not be enough without a clear enforcement mechanism in the Draft Law on Science, Technology and Innovation. To develop the science and technology market, the legal framework must clearly define its subjects, scope, responsibilities, and authority; facilitate the establishment of a national technology exchange; and invest in shared platforms for science, technology and innovation.

According to Phan Van Hieu, Chairman of the Board of Directors of CVI Pharmaceutical and Cosmetic Joint Stock Company, to have a market, there must be rules, binding regulations, and legislation on the rights and responsibilities of buyers, sellers and the market regulator. Therefore, it is necessary to improve the information environment in the technology market; train qualified managers and assessors; ensure rapid granting of patents and geographical indications; and promptly issue national technical standards for innovative products.

Assoc. Prof. Dr. Phan Tien Dung, Head of the Department for Technology Application and Deployment under the Viet Nam Academy of Science and Technology, believes that the Draft Law on Science, Technology and Innovation must concretise Resolution No. 57-NQ/TW by facilitating scientists to transfer their research results. The law and its implementing regulations should encourage the transfer of technologies from research institutes to society, thereby creating jobs and promoting socio-economic development. Without a functioning technology market, scientists will not be able to sell their products and will focus only on basic research, while the country urgently needs breakthrough applied research that can be quickly put into production and business activities.

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