Decisive First Steps to Remove Obstacles in Science and Technology Activities
Science, technology, innovation, and national digital transformation play a crucial role in promoting the country’s development. However, existing legal regulations still pose numerous challenges, restricting activities in these fields. In response, the Politburo has issued a resolution to address these issues, and both the Government and the National Assembly are taking decisive first steps to remove these barriers.
Legal Obstacles Hindering Scientific and Technological Development
Experts believe that the slow progress of science, technology, innovation, and digital transformation in Vietnam is primarily due to institutional and legal constraints.
Restrictive legal frameworks prevent scientists from fully utilizing their potential in research. Even when research is completed, the lack of effective mechanisms prevents these results from being applied in real life.
According to General Secretary Tô Lâm, the issues surrounding science, technology, innovation, and digital transformation are vast and complex, as they intersect with multiple legal areas, making every step challenging. Institutional barriers are a major bottleneck that hinders development.
Phó Thủ tướng Nguyễn Hòa Bình highlighted several key legal obstacles:
- State Ownership of Research Results
- Under current regulations, when the government funds research, the results belong to the state. This often leads to valuable scientific findings being left unused in bureaucratic archives instead of being commercialized.
- Scientists Are Not Allowed to Participate in Business Activities
- Vietnamese law prohibits public-sector researchers from engaging in commercial activities. As a result, many scientists are unable to turn their discoveries into real-world applications.
- High Risk and Uncertainty in Scientific Research
- Scientific research involves multiple failures before success. For instance, creating a new product may require ten experiments, with the first nine failing before achieving a breakthrough. Current policies fail to account for these risks, discouraging experimentation.
- Lack of Incentives for Private Sector Investment in R&D
- Although Vietnam’s legal framework mandates that 2-3% of GDP be allocated to science and technology, funding remains insufficient. Meanwhile, stringent regulations discourage businesses from investing in research.
- Overly Complex Financial and Procurement Procedures
- Researchers must undergo public bidding procedures to procure materials and meticulously document every expense. Often, the financial paperwork is far more extensive than the actual research findings, creating unnecessary administrative burdens.
Proposed Solutions to Overcome These Barriers
General Secretary Tô Lâm, Prime Minister Phạm Minh Chính, and Deputy Prime Minister Nguyễn Hòa Bình all emphasize that institutional reforms are essential to advancing science, technology, innovation, and digital transformation.
The Politburo’s Resolution No. 57 acknowledges these challenges, but since addressing them requires modifying multiple laws, a phased approach is necessary.
- Short-Term Measures – Special Resolution by the National Assembly
- The Government has drafted a resolution allowing temporary exemptions from restrictive laws to facilitate scientific and technological activities. This resolution will be submitted for approval during the 9th Extraordinary Session of the National Assembly.
- Long-Term Legislative Reforms
- The Government will propose amendments to major laws, including:
- State Budget Law
- Tax Laws
- Enterprise Law
- Science and Technology Law
- The Government will propose amendments to major laws, including:
Key Provisions in the Proposed Resolution
According to Minister of Information and Communications Nguyễn Mạnh Hùng, the draft resolution aims to:
- Remove financial and bureaucratic hurdles for government-funded R&D
- Enhance flexibility in the management of public research institutions
- Facilitate commercialization of scientific research
- Encourage private sector participation in research and innovation
- Introduce special mechanisms for digital transformation and strategic technology investments
Prime Minister Phạm Minh Chính outlined five special mechanisms to support scientific and technological development:
- Developing Science and Technology Infrastructure
- Improving Management and Governance in Science and Technology
- Enabling Scientists to Commercialize Their Research
- Providing Legal Protection for Policymakers in Case of Unintentional Risks
- Attracting and Retaining Talent in Both the Public and Private Sectors
Deputy Prime Minister Nguyễn Hòa Bình also noted that the resolution will allow public-sector scientists to retain ownership of their research and directly engage in commercial activities.
Additionally, businesses investing in science, technology, and digital transformation will be eligible for:
- Tax deductions on R&D expenses
- Full-cost reimbursement for research activities
A Landmark Reform for Vietnam’s Future
The pilot resolution introduces groundbreaking policies to accelerate science, technology, innovation, and digital transformation. If approved, it is expected to significantly boost Vietnam’s technological progress and contribute to:
- An economic growth rate of at least 8% in 2025
- Long-term sustainable development, aiming for double-digit GDP growth
- Vietnam successfully escaping the middle-income trap and becoming a high-income country
These reforms mark a decisive turning point in Vietnam’s journey towards becoming a global leader in science, technology, and digital innovation.