This orientation has continued to be institutionalised through the 2025 Law on Science, Technology, and Innovation and the 2025 Law on High Technology, thereby creating a legal foundation for the development of scientific and technological products.
At present, the funding mechanism is being strongly redirected towards science and technology development funds in order to concentrate resources, address fragmented investment, and improve the efficiency of research and development spending. Against this backdrop, the National Foundation for Science and Technology Development (Nafosted) plays a pivotal role, serving not only as a channel for allocating resources but also as a tool for guiding and steering research and deployment in strategic technology sectors, thereby helping to strengthen technological self-reliance and realise national development goals.
Effective mechanisms needed for mobilising and allocating resources
In recent years, the Government has simultaneously implemented a range of policies, from identifying 11 groups of strategic technologies and 35 priority products to issuing the National Science, Technology, and Innovation Programme for the development of priority strategic technology products. The Ministry of Science and Technology is overseeing implementation, initially focusing on six strategic technology products: large language models, virtual assistants, AI cameras, autonomous mobile robots, 5G, blockchain, and unmanned aerial vehicles.
To turn these orientations into reality, the key requirement is an effective mechanism for mobilising and allocating resources. Science and technology development funds act as intermediary financial institutions, with Nafosted expected to become a “midwife” helping to foster the science, technology, and innovation ecosystem.
According to Minister of Science and Technology Vu Hai Quan, the formulation and implementation of strategic technology and product lists have recently been carried out vigorously and synchronously nationwide. Ministries, sectors, and localities have proactively issued action plans, developed technology innovation roadmaps to 2030 and 2035, and gradually translated them into implementation programmes. Resources for science and technology have continued to increase through large-scale investment, leading to initial achievements such as the development of sector-specific virtual assistants, digital mapping systems for raw material regions, and blockchain-based agricultural traceability systems.
The formulation and implementation of strategic technology and product lists have recently been carried out vigorously and synchronously nationwide. Ministries, sectors, and localities have proactively issued action plans, developed technology innovation roadmaps to 2030 and 2035, and gradually translated them into implementation programmes. Resources for science and technology have continued to increase through large-scale investment, leading to initial achievements such as the development of sector-specific virtual assistants, digital mapping systems for raw material regions, and blockchain-based agricultural traceability systems,
Vu Hai Quan
Minister of Science and Technology
Universities and research institutes have also begun establishing core research centres in key areas such as artificial intelligence, semiconductors, and new energy. Many domestic enterprises are gradually mastering core technologies for the development of strategic products.
Nafosted has increasingly affirmed its role as a key funding body supporting research organisations and scientists. Between 2015 and 2025, the fund financed more than 300 projects annually and supported over 12,000 scientists, thereby helping to sustain specialised research directions, particularly in fundamental research, while gradually building a high-quality scientific workforce. Notably, around 70% of funded projects were carried out at universities, strengthening the link between research and education and laying a long-term human resource foundation for strategic technology sectors.
Unlocking resources to create momentum for breakthroughs
Despite these achievements, the country remains in the early stages of development, and the full role of science and technology development funds, especially national-level funds, has yet to be realised in practice. Existing bottlenecks still need to be addressed in order to unlock resources and create momentum for breakthroughs in strategic technology development.
According to Associate Professor Dr Dao Ngoc Chien, although the implementation of strategic technology projects is now under way, the principal challenge lies in the mechanism itself. Many regulations remain too general and insufficiently detailed for effective implementation, while some policies are not well suited to the characteristics of different groups of beneficiaries. For example, research institutes and universities require flexible expenditure mechanisms and acceptance of research risks, whereas businesses are more concerned with tax incentives, land policies, technical standards, and intellectual property protection. From this reality, there is a need to continue refining institutions by categorising beneficiaries and designing flexible policies tailored to the needs of institutes, universities, and enterprises instead of applying a one-size-fits-all approach.
The implementation of strategic technology projects is now under way, but the principal challenge lies in the mechanism itself. Many regulations remain too general and insufficiently detailed for effective implementation, while some policies are not well suited to the characteristics of different groups of beneficiaries. For example, research institutes and universities require flexible expenditure mechanisms and acceptance of research risks, whereas businesses are more concerned with tax incentives, land policies, technical standards, and intellectual property protection. From this reality, there is a need to continue refining institutions by categorising beneficiaries and designing flexible policies tailored to the needs of institutes, universities, and enterprises instead of applying a one-size-fits-all approach,
Associate Professor Dr Dao Ngoc Chien,
Director of Nafosted
Associate Professor Dr Dinh Van Trung of the Viet Nam Academy of Science and Technology noted that the implementation of orientations under Government Decision No. 1131/QD-TTg on the list of strategic technologies and strategic technology products remains at an early stage and requires more time for a comprehensive assessment of its effectiveness and impact.
Research practices have also revealed challenges such as limited domestic demand for specialised products; unstable post-acceptance funding; prolonged capital allocation procedures causing disruptions; and increasing competitive pressure from imported goods. This underscores the need to strengthen the role of science and technology development funds, ensuring sustained resources and support from research through to commercialisation. Improving the operational mechanism of the funds, while accepting and managing risks, would help “untie” innovation and promote breakthrough research directions.
In reality, the role of science and technology development funds, particularly national-level funds, in financing strategic technology projects has yet to be fully utilised, with their impact remaining limited, especially within the business sector.
According to Nguyen Trung Kien, many enterprises are either unaware of the funds or still perceive them as supporting mainly academic research rather than product development needs. Therefore, it is necessary to strengthen communication about the activities of these funds, particularly the breakthrough innovations in the new charter, so that the science and technology business community can gain a clearer understanding and access to them.
