Under the Decree, the Foundation will contribute to advancing science, technology and innovation as the central driving force of the new growth model. Through funding and commissioning scientific research, technological development and innovation projects, it aims to address major national socio-economic challenges that require interdisciplinary and cross-regional solutions.
The Foundation also seeks to strengthen Viet Nam's national science and technology capacity, foster foundational scientific knowledge, facilitate the mastery of core, high and strategic technologies, nurture outstanding scientists, young researchers and leading research groups, and establish internationally recognised centres for scientific research and technological development.
Discussing the key innovations introduced by Decree No.229/2026/ND-CP, Associate Professor Dr Dao Ngoc Chien, Director of the NAFOSTED, said one of the most significant changes is the clearer definition of the Foundation's operating model as an independent, transparent and competitive research funding organisation aligned with international standards.
According to Associate Professor Dr Chien, the Foundation's operations have also been designed to enhance autonomy while strengthening accountability at both institutional and individual levels. Funding, commissioning, and support activities will be implemented through independent scientific evaluation, ensuring academic autonomy, objectivity, transparency and openness, while fully adhering to the principles of research integrity and professional ethics in scientific research and technological development.
Another major innovation of the Decree is in the financial mechanism, which grants the Foundation greater autonomy by shifting from an input-based management model to one focused on outputs and results. According to the regulations, State budget allocations to the Foundation will be included annually within the national budget for science, technology and innovation, based on approved policies and plans. Budget allocations will be made as an overall funding envelope rather than being tied to a predefined list of specific research projects at the time the budget is approved.
Associate Professor Dr Chien noted that this mechanism enables the Foundation to take greater initiative in identifying, approving and implementing funding, commissioned research and support programmes within its mandate, while aligning activities with strategic priorities and approved resource allocation plans.
One of the most notable innovations of the Decree is the introduction, for the first time, of a dedicated chapter on risk management in funding and commissioning scientific and technological projects, specifically Chapter VI: Risk Management. He stated that risk management is addressed right from the task selection stage. Each proposal will be assessed for potential risks based on evaluations conducted by independent scientific advisory councils. The Decree also clearly defines the risk management responsibilities of both the organisations and individuals implementing Foundation-funded or commissioned projects, as well as the responsibilities of the Foundation itself.
Specifically, upon receiving reports from the lead organisation and individuals carrying out scientific and technological tasks funded or commissioned by the Fund regarding the occurrence of risks, the Foundation may conduct extraordinary inspections and evaluations to assess mitigation measures, determine the causes and impacts of the risks, and evaluate the feasibility of corrective actions. Where evidence of fraud or deliberate legal violations is identified, the Foundation will report the matter and recommend that the competent authorities take action in accordance with the law.
"Our guiding principle is to accept risks under appropriate oversight. If a project ultimately fails to achieve its intended outcomes, organisations or individuals that have complied with professional procedures, management regulations and transparency requirements may be exempted from administrative liability and will not be required to reimburse the funding under current regulations," Dr Chien said.
The Decree also features provisions supporting activities aimed at strengthening Viet Nam's national science and technology capacity. The Foundation will provide assistance for developing the country's scientific workforce through support for young scientists, postdoctoral researchers, doctoral candidates, short-term overseas research placements, invitations for distinguished international scientists to undertake academic exchanges in Viet Nam, as well as programmes for talented young researchers and engineers.
Notably, the Decree introduces a new mechanism to support the research activities of outstanding scientists with exceptional achievements in scientific research and technological development, thereby fostering the development of leading research groups and enhancing national scientific capacity.
Another important addition appears in Article 19 of Chapter IV, which specifies that the Foundation will support technology validation research for technologies derived from scientific research results, inventions, technical solutions, technology prototypes or transferred technologies requiring validation under Vietnamese conditions. The objective is to assess scientific and technical feasibility, complete validation data and ensure technologies reach the required level of technological readiness for further refinement or commercial transfer.
According to Associate Professor Dr Chien, technology validation represents a crucial transitional stage for promising research ideas that have not yet matured into fully developed products. Supporting researchers in refining technologies and evaluating their practical applications will help bring research outcomes closer to the market and facilitate the creation of technology-based start-ups.
In addition to state budget funding, the Decree authorises the Foundation to receive and manage non-state financial resources, including lawful voluntary contributions, donations and grants, as well as income generated through cooperation, partnerships and co-funding arrangements consistent with its mandate.
With its comprehensive reforms covering organisational structure, financial autonomy, risk management and capacity-building support, Decree No.229/2026/ND-CP provides a solid legal foundation for the National Foundation for Science and Technology Development to enhance its effectiveness, thereby promoting scientific research, technological advancement and innovation in Viet Nam's new stage of development.
