Transparent legal framework lays groundwork for innovation

A shift in mindset and governance

At the 9th session of the 15th National Assembly, the Law on Science, Technology and Innovation was officially passed. This is a landmark legislative move aimed at institutionalising Resolution 57-NQ/TW of the Politburo, positioning science, technology, and innovation as the core drivers of rapid and sustainable national development.

Significantly, this is the first time innovation has been recognised alongside science and technology, reflecting a fundamental transformation in development thinking. Innovation is now identified as a key engine for enhancing national competitiveness, driving socio-economic growth, ensuring national defence and security, and improving the quality of life. It is expected to contribute 3% to GDP growth, compared to 1% from science and technology alone.

Another notable highlight of the law is its shift from input-based management to outcome-based assessment, focusing on evaluating results and impacts. It allows individuals and organisations conducting research tasks to own their research outcomes for commercialisation, and to receive at least 30% of the income generated. These provisions aim to foster a culture of innovation, encouraging initiative and practical engagement in research, while tightly integrating science and technology with socio-economic development.

The law also includes a dedicated provision on "accepting risks in scientific, technological and innovation activities" and permits controlled piloting of new technologies and business models. This represents a bold step in regulatory thinking, eliminating unnecessary administrative barriers. It is a breakthrough designed to unleash intellectual resources and accelerate the development of a robust national innovation ecosystem.

According to Professor Dr Tran Tuan Anh, Vice President of the Viet Nam Academy of Science and Technology, innovation is not merely a “choice” but a “vital driver” for technological autonomy, productivity gains, and global competitiveness. Previously, legislation and policy mainly focused on scientific research and technological development, the early stages of the innovation value chain.

Now, with innovation legally recognised, the focus has shifted from pure research to application-oriented research, creating added value through comprehensive innovation – not only in technology but also in business models, production systems, and management practices.

In reality, scientific and technological management in Viet Nam has long been based on an input-focused approach, with excessive emphasis on procedures rather than practical application of research outcomes.

Dr Nguyen Dai Lam, Standing Deputy Head of the Continuing Education Faculty at the Ha Noi University of Business and Technology (HUBT), noted that this approach has led to numerous research projects meeting formal criteria for approval but failing to be commercialised or applied in practice, resulting in waste. The revised law marks a clear change in the state's governance model, from input control to output-based evaluation, encouraging research geared towards real-world impact, with a tolerance for risk supported by risk management mechanisms.

Dr Lam expressed hope that legal recognition of innovation will provide a solid legal foundation for universities to access socialised funding, venture capital, or enterprise contracts, enabling them to boldly pursue high-potential but risky research projects. Legalising innovation also enhances the autonomy of universities in establishing spin-off companies, paving the way for entrepreneurial and innovative universities to emerge. These institutions could become incubators for start-ups and open creative spaces for both students and faculty.

A regulatory framework that creates national advantage

Innovation has clearly become a core pillar, now receiving equal priority in the national technology development strategy. However, experts caution that the greatest challenge lies in translating policy into practice. To avoid the pitfall of passing laws that remain on paper, vigorous and comprehensive implementation is crucial.

According to Dr Tran Van Khai, Deputy Head of the National Assembly’s Committee on Science, Technology and Environment, a mindset shift in management at all levels is needed. If outdated thinking such as “if it can't be controlled, it should be banned” persists, innovative mechanisms like liability exemptions in cases of objective risk will struggle to take effect.

Moreover, cross-sectoral coordination and resource mobilisation will require strong political will. The law sets out objectives and incentives clearly, but for these to be effective, ministries, agencies, and local authorities must promptly issue detailed guidelines and allocate sufficient financial and human resources.

The Government must also quickly enact clear, practical implementation documents to prevent additional administrative burdens. The National Assembly and relevant oversight bodies must intensify monitoring and push for enforcement, firmly resolving financial and procedural bottlenecks to ensure the new mechanisms take effect in practice.

“With a united political system and a spirit of innovation, we can turn the principles enshrined in the law into effective action, in line with the Party’s vision of transforming institutions and laws into national competitive advantages,” Dr Khai affirmed.

From another perspective, Professor Dr Tran Tuan Anh remarked that enshrining innovation in law is only a first step, a necessary condition, but not yet a sufficient one. Viet Nam still retains remnants of outdated management mindsets that have yet to adapt to this innovative vision.

To overcome long-standing obstacles, the law must be swiftly detailed through decrees, circulars, and accompanying financial and administrative guidelines and enforcement mechanisms.

Priority should be given to drafting clear, practical, and user-friendly regulations, particularly those involving financial mechanisms, policy experimentation, and administrative streamlining. Simultaneously, broad and in-depth training must be provided across ministries, agencies, and localities to instil the mindset and governance approach necessary for managing an innovation-driven ecosystem.

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