Law opens new development spaces for Vietnam’s technology firms
The Law on High Technology (revised) is widely seen as a major turning point, not only creating strong momentum for domestic enterprises but also affirming Vietnam’s ambition to position itself more prominently on the global technology map.
“Passport” for new technology position
First enacted in 2008, the Law on High Technology laid the foundation for the establishment of high-tech parks, the attraction of investment into key technological fields, and the promotion of research and development (R&D).
However, after more than a decade of implementation, both domestic and international contexts have changed profoundly, marked by the rapid rise of artificial intelligence (AI), semiconductors, big data, biotechnology, new energy and comprehensive digital transformation.
Against this backdrop, the revised Law on High Technology is designed to meet three major objectives - creating a legal framework for emerging strategic technologies with wide spillover effects on productivity, competitiveness and national economic security; promoting technological self-reliance and reducing dependence on imported core technologies; and renewing state governance from a “management and licensing” approach to one of “facilitation and partnership”, allowing room for risk-taking in innovation and controlled experimentation.
A notable breakthrough of the revised law is the first-time legalisation of the concept “strategic technologies”, accompanied by an exceptional package of incentives covering investment, taxation, land access, public procurement, human resources and sandbox mechanisms. This move is regarded as a strategic step to help Vietnam shift from a follower to a country capable of leading in selected critical fields.
According to Ly Hoang Tung, Deputy Director of the Department of Science, Technology and Engineering at the Ministry of Science and Technology, said the revised law is not merely a legal document but a “strategic passport” elevating Vietnam’s standing in the global technology landscape.
He said that the law signals Vietnam’s emergence as a proactive pioneer through the early institutionalisation of strategic technologies and sandbox mechanisms, strengthening confidence among multinational corporations and major technology investors. It also reinforces technological sovereignty by prioritising core and strategic technologies, enabling Vietnam to move from assembly and processing towards higher value-added stages in global value chains.
In addition, the law reshapes Vietnam’s foreign investment strategy, shifting from broad-based incentives to selective cooperation. Priority will be given to projects with commitments to technology transfer, the establishment of R&D centres in Vietnam, and stronger linkages between foreign-invested enterprises and domestic supply chains. At the same time, it opens pathways for Vietnamese technology firms to participate directly in regional and global innovation networks, with state backing for exports and overseas investment in strategic technologies.
Breakthrough incentive policies
On incentives, Tung emphasised that the law’s “breakthrough” lies not only in financial support but in its development-oriented mindset.
Strategic technologies and strategic technology enterprises will enjoy the highest levels of incentives under investment, tax and land regulations, including special investment incentives for projects producing strategic technology products.
Another landmark is the legal recognition of “risk acceptance” in innovation. Enterprises engaged in high-tech and strategic technology R&D will benefit from mechanisms that tolerate research failure, easing administrative pressure and encouraging bold technological exploration.
The law also introduces preferential public procurement mechanisms, prioritising the purchase and use of high-tech and strategic technology products funded by the state budget. This helps address the long-standing challenge of market access for domestically developed technologies.
To strengthen mastery of core technologies, the State will apply special mechanisms for technology decoding and the acquisition of technological know-how, while providing financial support to replace imported core components and products, accelerating localisation and tech self-reliance.
Human resources are another focal point, with top-tier incentives for high-quality talent.
More broadly, they represent a clear commitment by the State to accompany enterprises on the path towards technological autonomy, positioning high technology as a key driver of Vietnam’s development in the digital era, the official stated.
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