Create motivation for private scientific research

In the era of industry 4.0, science, technology and innovation (STI) is not only the core factor promoting economic growth but also the foundation of national competitiveness. Ho Chi Minh City is considered the driving force in the development of science, technology and innovation in Vietnam, so promoting recognition of research results invested by individuals and organisations is very necessary in the current period.

In the context of Vietnam promoting national science, technology and innovation development, many support policies are increasingly being improved, playing an important role in promoting the knowledge economy. In current preferential policies, in addition to focusing on the financial sector (capital support, tax exemptions and reductions), there are also mechanisms and policies to promote research and application of science and technology, creating favourable conditions for agencies and units to improve competitiveness, commercialise products and access resources for innovation.

To guide the Law on Technology Transfer (Law No. 07/2017/QH14), on May 15, 2018, the Government issued Decree No. 76/2018/ND-CP. Among them, there are regulations on recognition of scientific research and technological development results invested in by organisations and individuals; Guide documents and procedures for recognition of private research results, transfer receiving units, etc. for non-state organisations and individuals. This Decree also has regulations on funding support and purchasing results of scientific research and technology development invested by organisations and individuals.

Identifying science and technology enterprises as an important element in the science, technology and innovation ecosystem, a key element of national development; To promote the development of this group of businesses, on February 1, 2019, the Government issued Decree No. 13/2019/ND-CP to make adjustments. In particular, many preferential policies have been identified: (1) Corporate income tax (CIT) exemption and reduction: corporate income tax is exempted for the first 4 years and reduced by 50% for the next 9 years, when revenue from production and sales of products formed from science and technology results accounts for at least 30% of the total revenue of the enterprise in the fiscal year; (2) Credit incentives for S&T enterprises to carry out scientific research, technology development and production and business activities: receive State investment credit loans, in some cases loans with preferential interest rates, loan interest rate support and guarantees to borrow capital; (3) Handing over assets of science and technology results formed from science and technology tasks using state capital; (4) Support research activities and commercialise results: preferential export tax and import tax; Prioritize not charging service fees when using machinery and equipment at key national laboratories, technology incubators, business incubators, and state-owned science and technology research facilities to carry out scientific research and technology development activities, technology incubation, trial production of new products, and science and technology business incubation; Exemption from registration fees when registering land use rights and home ownership rights according to regulations; (5) Support and encourage technology application and innovation: capital support, loan guarantee, loan interest rate support up to 50% of loan interest rate at commercial banks.

Recently, Resolution No. 68-NQ/TW of the Party Central Committee (issued on May 4, 2025) on private economic development also identifies many strong guidelines and policies to promote science, technology and innovation, digital transformation, green transformation, effective and sustainable business in the private economy. These include regulations on creating a favourable environment for private enterprises to participate in research and application of artificial intelligence, blockchain, big data, e-commerce, etc.; Allows businesses to include in expenses when determining taxable income for research and development activities up to 200% of the actual costs of this activity; Enterprises are also allowed to deduct a maximum of 20% of their corporate income tax income to establish a science, technology and innovation development fund, digital transformation and research and development, etc. This spirit is also applied in the Law on Corporate Income Tax (Law No. 67/2025/QH15) recently issued by the National Assembly on June 14, 2025, expanding the scope of incentives, allowing deductible expenses for grants for research activities, digital transformation and core technology development, high technology. Projects in the field of high-tech agriculture or environmental technology,... are eligible for a preferential tax rate of 10% for a period of 15 years,...

The State also established science and technology development funds to support individuals and businesses in conducting research and applying science and technology into practice. Notably, the National Technology Innovation Fund (NATIF) provides preferential capital for R&D and innovation projects, directly and effectively impacting small and medium-sized enterprises, helping them access preferential capital to complete and deploy technology solutions, thereby creating economic value and tangible benefits.

To support research and product commercialisation, the activities of the National Foundation for Science and Technology Development (NAFOSTED) have contributed to promoting the trend of international publication, improving the global innovation index (GII) and global competitiveness (GCI) for Vietnam; contributing to attracting young scientists and technicians to work domestically, creating opportunities for international cooperation and a transparent and competitive research environment; innovating the funding mechanism, applying block payments, simplifying procedures, helping to increase flexibility and transparency.

Operating results of the KH&CNZ fundXQTAG00002XQZ

(Source: natif.vn and nafosted.gov.vn)

Considering science and technology as a breakthrough and the focus of socio-economic development, Ho Chi Minh City identifies priorities for developing core technology industries such as artificial intelligence (AI), microchips - semiconductors, blockchain, big data, IoT, biotechnology, advanced materials,...

According to statistics of the S&T industry, as of December 31, 2024, the City's S&T ecosystem is quite diverse and dynamically developing, with 427 S&T organisations. Of these, 75.4% of organisations belong to the private sector, showing a strong growth in the number of the private sector compared to the public sector. Also in this ecosystem are more than 2,200 startups operating in the fields of AI, biotechnology, digital technology, new materials technology, big data applications, etc. In addition, there are many foreign organisations investing in research activities at Ho Chi Minh City, such as SAP Labs Vietnam; R&D enterprises in the High-Tech Park (Intel, Nidec, Jabil, Air Liquide, Sonion, Datalogic); international educational and research organisations (Fulbright University Vietnam); Investment fund for indirect R&D support (VAM, Dragon Capital),...

To promote individuals and businesses to increase investment in scientific research and technology application in production, the City is actively implementing specific mechanisms and policies according to Resolution No. 98/2023/QH15 of the National Assembly (issued on June 24, 2023): corporate income tax exemption for 5 years from the date of tax arising for innovative startup activities of businesses. businesses, science and technology organisations, innovation centres and intermediary organisations supporting innovative startups in the area; Exemption from personal and corporate income tax on income from capital transfer and capital contribution rights to creative startup enterprises in the area; Personal income tax exemption for 5 years for experts, scientists, people with special talents, creative startup individuals working at the mentioned entities.

Since 2021, the City has strongly implemented the Programme to support businesses in applied research, technology development and innovation (RD&I), with support of up to 30% of funding for scientific research investment projects and technology application in businesses' production and business. The city also has a non-refundable support policy for creative startup projects in three stages: pre-incubation (maximum 40 million VND), incubation (maximum 80 million VND) and acceleration (maximum 400 million VND). To implement personal income tax exemption and corporate income tax exemption according to the provisions of Resolution No. 98/2023/QH15 and Decree No. 11/2024/ND-CP, on December 11, 2024, the City People's Council issued Resolution No. 31/2024/NQ-HDND, stipulating priority areas; criteria, conditions, and content of innovative startup activities that generate income in the City.

In addition, Ho Chi Minh City is also strengthening the implementation of procedures for recognizing independent S&T research results, creating a basis for commercialisation and development cooperation in the private sector. On May 28, 2025, the Department of Science and Technology Ho Chi Minh City coordinated with the Department of Startups and Technology Enterprises to organise a workshop "Dissemination and guidance on dossiers for recognition of results of scientific research and technological development invested in research by organisations and individuals themselves and scientific and technological tasks that do not use the state budget." "" aims to guide the implementation of dossiers for recognition of scientific research and technological development results invested by organisations and individuals in research and S&T tasks that do not use the state budget. With official recognition from the State - which is the basis for enjoying incentives for technology businesses, this also helps businesses more easily commercialise research results, such as collaborating with other businesses or valuing to contribute capital as intellectual property,...

Workshop "Dissemination and guidance on dossiers for recognition of results of scientific research and technological development by organisations and individuals investing in research and science and technology tasks without using state budget" (Source: dost.hochiminhcity.gov.vn)

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Affirming its leading role in the development of science, technology and innovation in Vietnam, Ho Chi Minh City is focusing on creating a strong driving force for scientific research and innovation in the private sector. With comprehensive preferential policies, from non-refundable financial support, tax incentives, to creative testing mechanisms and encouraging commercialisation of research results, the City has been creating a favourable foundation, helping individuals, private organisations and the entire diverse and dynamic ecosystem to maximize the potential of research, innovation, and creating sustainable development values.

Minh Thu

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Main References

[1] Hoang Giang. (2023). Contribute to creating a favourable scientific research environment according to international standards. https://baochinhphu.vn/gop-phan-tao-dung-moi-truong-nghien-cuu-khoa-hoc-thuan-loi-theo-chuan-muc-quoc-te-10223120615214378.htm [2] Hoang Kim. (2025). Recognition of research results that do not use state budget. https://dost.hochiminhcity.gov.vn/hoat-dong-so-khcn/cong-nhan-ket-qua-nghien-cuu-khong-su-dung-ngan-sach-nha-nuoc/ [3] Linh Chi. (2021). Efficiency from the Technology Innovation Fund model. https://natif.vn/2021/12/25/hieu-qua-tu-mo-hinh-quy-doi-moi-cong-nghe/ [4] Thanh Tuyen. (2024). Piloting mechanisms and policies to support science, technology and innovation at Ho Chi Minh City. https://plo.vn/thi-diem-co-che-chinh-sach-ho-tro-khoa-hoc-cong-nghe-va-doi-moi-sang-tao-tai-tphcm-post778579.html

Copyright CREATIVE STARTUP CENTRE Ho Chi Minh City - DEPARTMENT OF SCIENCE AND TECHNOLOGY Ho Chi Minh City

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Source: CESTI – Centre for Science & Technology Information and Statistics Ho Chi Minh City. Original article: https://thongke.cesti.gov.vn/an-pham-thong-ke/thong-tin-chuyen-de-khoa-hoc-cong-listen-va-doi -new-sang-tao/1473-tao-dong-luc-for-student-cuu-science-tu-nhan