Deploying Regulatory Sandboxes to Accelerate Strategic Technology Commercialization

With the institutional framework now largely in place, the priority is to put these new mechanisms into practice, particularly the regulatory sandbox, to accelerate technology commercialization and bring scientific innovations to businesses and the market more quickly.

Strengthening the institutional foundation for innovation

One of the most significant outcomes of implementing Resolution 57 has been the coordinated development of a legal framework for science and technology and digital transformation. Under this roadmap, the institutional framework is being strengthened through the revision and enactment of 10 core laws, including the Law on Science, Technology and Innovation, the Law on Digital Transformation, the Law on Artificial Intelligence (AI), the Law on Technology Transfer, and the revised Law on High Technology, to support the development of emerging technologies.

MST has also accelerated the preparation of implementing regulations. Since the beginning of 2025, it has submitted 33 decrees, one resolution, and 45 decisions for Government issuance, helping turn the policies of Resolution 57 into practice.

Beyond strengthening the institutional framework, MST has also introduced major changes to resource management and allocation. The National Foundation for Science and Technology Development (NAFOSTED) has expanded its role from funding research to supporting science, technology, and innovation across the entire innovation cycle, from basic research to technology development before commercialization.

Financial mechanisms have also been revised to focus on results-based management, greater autonomy, co-funding, and a gradual shift from managing inputs to evaluating outcomes. The National Technology Innovation Fund (NATIF) and the venture capital fund system are also being strengthened to provide businesses with more resources for research and technology development.

A significant shift has also taken place in the approach to science and technology management. Rather than focusing on individual research projects, research is now directed toward strategic technologies, products, and major national challenges. Accordingly, the Prime Minister has issued a list of 10 strategic technology groups and 30 strategic technology product groups, while identifying 20 major national challenges to be addressed by 2030 through focused resource allocation. This approach more closely aligns research with socioeconomic development priorities and business needs.

MST is also implementing research infrastructure programs, including the National Research and Testing Center Project, key laboratories, and the National Semiconductor Chip Manufacturing Support Center. It is also rolling out programs to support outstanding doctoral candidates and the Outstanding Basic Research Program for 2026-2035 to develop a highly skilled workforce for strategic technology sectors.

These efforts have produced encouraging results. Vietnam currently ranks 44th among 139 economies in the Global Innovation Index (GII), placing third in ASEAN. Since the strategic technology list was issued, patent applications filed by Vietnamese entities in these fields have increased by about 29% compared with the entire preceding period.

Delegates visit tech exhibition booths during the Vietnam Digital Summit 2026

Regulatory sandboxes to accelerate technology commercialization

Despite these achievements, MST has identified implementation as the biggest remaining bottleneck. In 2026, total funding for science and technology, innovation, and digital transformation reached VND103.43 trillion (US$4.31 billion), of which VND84.86 trillion (US$3.54 billion) has been allocated. However, as of June 29, 2026, only 25.91% of the budget had been disbursed.

According to MST, the problem is not a lack of resources but a management approach that remains focused on controlling inputs. Scientific research, however, inherently involves risks and requires room for experimentation, including accepting outcomes that may fall short of expectations.

To address this bottleneck, MST has identified the early implementation of the regulatory sandbox as a key priority for the next phase.

Under the proposal, the sandbox will focus on three main areas: expanding pilot procurement of domestically developed strategic technology products; adopting results-based commissioning, lump-sum funding tied to outcomes, and procurement of first-batch products; and introducing a pilot framework for state-backed venture capital investment. This is seen as an important step toward shortening the path from research to commercialization. Through the sandbox, technology companies will be able to test products in a controlled legal environment, allowing them to refine technologies more quickly and bring products to market faster.

Another key proposal is to create a safe legal environment for pilot projects. Under this approach, individuals acting within their authority, in a transparent and open manner, and without personal gain would be exempt from liability for losses caused by risks arising during pilot projects or the development of technology products that do not achieve expected results. At the same time, the management approach would shift toward reducing pre-approval requirements and strengthening post-implementation oversight through data, technical milestones, and product outcomes rather than administrative procedures.

Beyond advancing the sandbox mechanism, MST is also gradually developing a standards framework to help strategic technology products reach the market faster. It recently issued a catalog of 3,030 standards, including 1,150 national standards and 1,880 international, regional, and foreign standards, covering 30 strategic technology product groups. This is considered important "soft infrastructure," providing businesses, research institutes, and educational institutions with a common foundation for research, design, manufacturing, and product commercialization while improving their ability to meet domestic and international market requirements.

After more than a year and a half of implementing Resolution 57, the institutional foundation for science, technology, and innovation has largely been established. However, for these policies to create tangible economic value, implementation must continue to be strengthened through practical measures. MST's efforts to strengthen the institutional framework, develop the regulatory sandbox mechanism, and issue more than 3,000 standards for strategic technologies reflect a more comprehensive approach to building an ecosystem covering research, testing, standardization, and commercialization. This will provide an important foundation for Vietnamese technology companies to shorten the time needed to bring products to market, improve competitiveness, and contribute more effectively to economic growth in line with the objectives of Resolution 57.