On the morning of July 30, speaking at the opening ceremony of the Da Nang Innovation Startup Festival (SURF 2025), Deputy Minister of Science and Technology Hoang Minh stated that innovation is a key driver in enhancing productivity, quality, and national competitiveness.

Vietnam ranks 55th globally in the startup ecosystem index (up one position from 2024), 28th worldwide in the number of startups, 5th in Southeast Asia, and 11th in the Asia-Pacific region.

However, he highlighted existing bottlenecks: only 0.4 percent of Vietnamese businesses are innovative startups, and the ability of domestic startups to expand into international markets remains weak.

The Deputy Minister emphasized that the Politburo’s Resolution No57 has identified science, technology, and innovation as the foundation and central driver for rapid and sustainable development. Based on this, the recently passed Science, Technology, and Innovation Law has officially elevated innovation to the same level as scientific research. This is a significant step, paving the way for breakthrough policies.

Minh announced that the Ministry of Science and Technology (MST) is urgently collaborating with other ministries and agencies to draft decrees and legal documents for submission to the Government by October 2025, with several notable highlights:

First, a network of innovation centers will be established from central to local levels. Da Nang has been selected as a national innovation hub, tasked with connecting and providing technology solutions on a nationwide scale.

Second, for the first time, Vietnam will establish a state-funded venture capital fund, with funds in localities. These funds will accept risks without holding parties accountable for startup failures and allowing the hiring of domestic or foreign organizations/individuals for management. This fund system is expected to commence operations in 2025.

Third, a specialized stock market for innovative startups will be created. Domestic and foreign investors will have the opportunity to trade shares of innovative startups on Vietnam’s stock exchange, enabling domestic IPOs instead of relying on foreign exchanges as before.

Fourth, the National Technology Innovation Fund will be restructured to directly support businesses in purchasing patents, training personnel, investing in equipment, and providing loan interest subsidies. The state will also consider purchasing research outcomes or products from startups to support market development or issuing vouchers for using innovative products.

MST is going to propose to the National Assembly the amendment of the Law on Intellectual Property and Law on Technology Transfer in October. Some notable contents include: allowing to mortgage intellectual properties to borrow capital from banks, encouraging forms of technology transfer between domestic organizations designing having specific incentive policies.

Ho Giap