Nghị định 265/2025/NĐ-CP hướng dẫn Luật Khoa học Công nghệ và Đổi mới sáng tạo

DECREE

ON ELABORATION ON SOME ARTICLES OF THE LAW ON SCIENCE, TECHNOLOGY AND INNOVATION REGARDING FINANCE AND INVESTMENT IN SCIENCE, TECHNOLOGY AND INNOVATION

Pursuant to the Law on Government Organization No. 63/2025/QH15;

Pursuant to the Law on Science, Technology and Innovation No. 93/2025/QH15;

Pursuant to the Law on State Budget No. 89/2025/QH15;

Pursuant to the Law on Public Investment No. 58/2024/QH15 amended by the Law No. 90/2025/QH15;

Pursuant to the Law on Corporate Income Tax No. 67/2025/QH15;

At the request of the Minister of Science and Technology;

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Chapter I

GENERAL REGULATIONS

Article 1. Scope

1. This Decree elaborates some articles of the Law on Science, Technology and Innovation regarding finance and investment in science, technology and innovation including Article 15; clause 2, Article 18; clause 2, Article 31; Article 35; Article 61; Article 62; Article 63; Article 64; Article 65; Article 66; clause 2, Article 67 of the Law on Science, Technology and Innovation.

2. The Guidelines for the Law on Science, Technology and Innovation regarding finance and investment in science, technology and innovation include:

a) Strategy for development of science, technology and innovation; plan for science, technology and innovation;

b) State budget for science, technology and innovation; expenses; making budget estimates, management, use and state of the state budget for activities of science, technology and innovation;

c) Management and use of the National Foundation for Science and Technology Development (hereinafter referred to as “NAFOSTED”), the National Technology Innovation Foundation (hereinafter referred to as “NATIF”), and foundations for development of science, technology and innovation of Ministries, ministerial-level authorities, governmental authorities, other central authorities and province-level People's Committees;

d) Expenses, management and use of foundations for development of science, technology and innovation of enterprises, organizations and public service providers; expenses of enterprises for scientific research, technology development and innovation.

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This Decree applies to authorities, organizations, public service providers, enterprises and individuals engaging in science, technology and innovation; relevant organizations and enterprises.

Chapter II

INVESTMENT IN ACTIVITIES OF SCIENCE, TECHNOLOGY AND INNOVATION

Section 1. STATE BUDGET

Article 3. Strategy for development of science, technology and innovation; plan for activities of science, technology and innovation

1. The strategy for development of science, technology and innovation shall be developed on the basis of the strategy for social-economic development. Based on the strategy for social-economic development of the country in different period, the Ministry of Science and Technology shall take charge and cooperate with ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees in developing and proposing the Prime Minister for promulgation of the strategy for development of science, technology and innovation.

2. The five-year master plan for science, technology and innovation shall be developed in accordance with the five-year plan for socio-economic development.

3. Entities developing plans for science, technology and innovation include:

a) The Ministry of Science and Technology shall take charge and cooperate with ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees in developing and issuing the five-year master plan for science, technology and innovation;

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4. The grounds for developing the five-year master plan for science, technology and innovation include:

a) Evaluation of results of the implementation of the five-year master plan for science, technology and innovation of the previous phase;

b) The strategy for socio-economic development; strategy for development of science, technology and innovation; strategy for development of the sector; five-year plan for socio-economic development;

c) Forecast of domestic and international science, technology, and innovation trends, especially new and strategic technologies with significant socio-economic impact;

d) The context of international integration; international commitments and agreements related to science, technology, and innovation;

dd) Orientation on mobilization, allocation and use of financial resources, human resources and infrastructure for science, technology and innovation;

e) Evaluation of practical needs of the market, enterprises and society in promoting scientific research, technological development and innovation.

5. The five-year master plan for science, technology and innovation includes:

a) Evaluation of the progress of the main objectives, targets and tasks in the previous phase of the five-year master plan for science, technology and innovation; achieved results; existing shortcomings and limitations; causes and lessons learned;

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c) Determination of specific policies, solutions and tasks to implement the general objectives of the five-year master plan for science, technology and innovation including policies and tasks for developing strategic technologies; solutions for resource mobilization; determination of state budget expenses on investment and recurrent expenses for activities of science, technology and innovation; implementation; coordination and supervision mechanisms;

d) Other relevant solutions for effective implementation of the five-year master plan for science, technology and innovation.

6. The five-year plan for science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees includes:

a) Evaluation of the progress of the objectives, targets and tasks in the previous phase of the five-year plan for science, technology and innovation of ministries, central authorities and local authorities; achieved results; existing shortcomings and limitations; causes and lessons learned;

b) Determination of general objectives of the five-year plan for science, technology and innovation of ministries, central authorities and local authorities in accordance with the objectives of the five-year master plan for science, technology and innovation including the main objectives and priority development areas;

c) Determination of specific policies, solutions and tasks to implement the general objectives of the five-year plan for science, technology and innovation of ministries, central authorities and local authorities including policies and solutions for developing science, technology and innovation in accordance with practical conditions of ministries, central authorities and local authorities; state budget expenses for development of science, technology and innovation; and the prioritized list of projects and programs in science, technology and innovation;

d) Other relevant solutions for effective implementation of the five-year plan for science, technology and innovation of ministries, central authorities and local authorities.

7. Procedures for developing the five-year master plan for science, technology and innovation; the five-year plan for science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees include:

a) The Ministry of Science and Technology shall provide guidelines for development of the five-year plan for science, technology and innovation to serve as a ground for ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees to develop their plans;

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c) Based on the five-year master plan for science, technology and innovation, ministries, ministerial authorities, governmental agencies, other central authorities and province-level People's Committees shall develop, consult with the Ministry of Science and Technology, finalize, issue their five-year plans on science, technology and innovation before May 31 of the fifth year of the five-year plan; and submit the plans to the Ministry of Science and Technology for consolidation and supervision.

8. The adjustment of the five-year master plan for science, technology and innovation shall be carried out in the following cases:

a) There are major changes in the national strategy for socio-economic development, or the national strategy for development of science, technology and innovation;

b) There are factors affecting the implementation of the plan including socio-economic crises; large-scale natural disasters and epidemics;

c) There are a request from the Prime Minister or competent authorities as prescribed by laws.

9. The adjustment of the five-year plan for science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees shall be carried out in the following cases:

a) The adjusted five-year master plan for science, technology and innovation affects the plans of ministries, central authorities and local authorities;

b) During the implementation of the plan, if there is a need to adjust the plan in accordance with the actual socio-economic development situation, financial resources for science, technology and innovation, or other objective factors, ministries, central authorities and local authorities shall develop and issue the adjusted plan after reaching agreement with the Ministry of Science and Technology;

c) The adjusted plans shall be sent to the Ministry of Science and Technology for consolidation and supervision.

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a) The five-year plans for science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees shall be evaluated and the evaluation results shall be reviewed in accordance with the Decree elaborating some articles of the Law on Science, Technology and Innovation regarding information, evaluation, digital transformation and general matters;

b) The review of evaluation results is the ground for allocation of state budget and distribution of investment capital for the next phase.

Article 4. State budget for science, technology and innovation

1. The expenses for science, technology and innovation shall be included in the total state budget for science, technology, innovation and digital transformation.

2. The state budget for science, technology and innovation shall comply with the following structure:

a) According to level of state budget:

a1) The central budget;

a2) The local budget;

b) According to level of decentralization and scope of implementation:

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b2) Programs and tasks related to science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees.

c) According to the nature of budget expenses:

c1) Expenses for development investment;

c2) Recurrent expenses.

d) According to the field of activity:

d1) Basic research, applied research;

d2) Development of technology; development of social solutions; pilot production;

d3) Innovation based on technological innovation, technological creativity, initiatives, technical improvements, enhancement of technological efficiency; technology application and transfer;

d4) Startup; development of the ecosystem and culture of innovation;

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dd) According to implementation mechanism:

dd1) State-commissioned and sponsored scientific research, technology development and innovation;

dd2) Public-private support and cooperation; other state mechanisms to mobilize social resources for science, technology and innovation.

3. Annually, based on the guidelines and policies of the Communist Party of Vietnam (hereinafter referred to as "CPV"), the laws of the State, socio-economic development requirements, and the actual situation, the Ministry of Science and Technology shall take the lead and cooperate with the Ministry of Finance to determine the priority orientations and allocation of the state budget for science, technology and innovation in accordance with clause 1 of this Article; and provide guidelines for the principles of support and expenses of the central budget's targeted additional support to local budgets.

Article 5. State budget expenses for investment in development of activities of science, technology and innovation

1. Investment expenses for the development of science, technology and innovation infrastructure by sector and public investment target shall comply with the Decree elaborating some articles of the Law on Public Investment.

2. Provision of charter capital to the national venture capital foundation and local venture capital foundations shall comply with the laws on science, technology and innovation.

3. Other development investment expense tasks as prescribed by laws for support, investment, cooperation and assignment of tasks to Vietnamese enterprises for development of strategic technologies shall have their annual budget estimates prepared in accordance with point b, clause 1, Article 8 of this Decree including:

a) Tasks prescribed in points a, b and c, clause 1, Article 36 of the Law on Science, Technology and Innovation;

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4. Other investment activities for development of science, technology and innovation; other irregular investment in accordance with directives of the CPV and the State.

Article 6. State budget expenses for science, technology and innovation activities

1. Expenses for implementation of tasks related to science, technology and innovation including:

a) Remuneration for participation in tasks related to science, technology and innovation including remuneration for members participating in the implementation of tasks related to science, technology and innovation; wages for general labor supporting tasks within the research content; fees for hiring domestic and foreign experts collaborating in the implementation of tasks related to science, technology and innovation. The titles of those engaging in the implementation of tasks related to science, technology and innovation shall comply with the guidelines of the Ministry of Science and Technology;

b) Expenses for purchasing raw materials, fuels, materials, specimens, tools, spare parts, inexpensive consumables, energy, documents, data, reference books, newspapers, magazines, intellectual property ownership and usage rights, and database access rights to support the implementation of tasks related to science, technology and innovation (including direct purchases of foreign technology, products and equipment necessary for analysis and decoding at negotiated prices, as well as technological know-how for developing strategic technologies as prescribed in clause 1, Article 31 of the Law on Science, Technology and Innovation);

c) Expenses for repairs, purchases or leasing of assets (or facilities, equipment) serving the implementation of tasks related to science, technology and innovation;

d) Expenses for organization of and fees for participation in scientific conferences, seminars, forums, scientific workshops, domestic and international per diem; international cooperation (outgoing and incoming delegations) serving the implementation of tasks related to science, technology and innovation;

dd) Expenses for outsourced services serving the implementation of tasks related to science, technology and innovation;

e) Expenses for surveys and data collection serving the implementation of tasks related to science, technology and innovation;

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h) Fees for publishing domestic and international scientific and technological works;

i) Expenses for self-evaluation of the results of the implementation of tasks related to science, technology and innovation;

k) Expenses for consulting services to prepare intellectual property registration dossiers domestically and internationally for the results of the implementation of tasks related to science, technology and innovation;

l) Expenses for dissemination of the results of tasks related to science, technology and innovation;

m) Expenses for organization of joint management of tasks related to science, technology and innovation;

n) Other expenses related to the implementation of tasks related to science, technology and innovation.

2. Expenses for implementation of special tasks related to science, technology and innovation; special programs for science, technology and innovation shall comply with clauses 1 and 4 of this Article and other special expenses. The Minister of Science and Technology is responsible for proposing the Prime Minister the following contents: special tasks related to science, technology and innovation, special programs for science, technology and innovation including the total budget or investment amount, budget structure, and special expenses for implementation of special tasks related to science, technology and innovation, special programs for science, technology and innovation in accordance with laws on state budget; public investment; science, technology and innovation; and relevant laws.

3. Expenses for improvement of science and technology capacity including:

a) Expenses to support young scientist attending international conferences and seminars; expenses to support scientists presenting outstanding research papers at specialized international scientific conferences;

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c) Expenses to support the research activities of postdoctoral researchers, doctoral program candidates, master's program students, outstanding scientists, talented young scientists and talented young engineers;

d) Expenses for internships and short-term research abroad with priority given to talented young scientists and talented young engineers;

dd) Expenses for training for individuals engaging in activities of science, technology and innovation;

e) Expenses for organizing domestic and international scientific conferences in Vietnam;

g) Expenses for publishing results of domestic and foreign scientific research and technology development;

h) Expenses for improving the quality of scientific journals;

i) Expenses for awarding collectives and individuals with outstanding achievements in scientific research, technology development and innovation;

k) Expenses for inviting outstanding foreign scientists to Vietnam for short-term academic exchanges;

l) Expenses to support and sponsor the implementation of policies to attract and retain chief engineers, talents and individuals engaging in activities of science, technology and innovation;

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4. Expenses for performing innovation tasks related to technology application, technology transfer, technological innovation and innovation activities:

In addition to expenses as prescribed in clause 1 of this Article, expenses for performing innovation tasks related to technology application, technology transfer, technological innovation and innovation include:

a) Expenses to support the acquisition of technology usage rights or ownership rights (licensing fees, transfer fees, fees for secret trading); research results, digital transformation solutions; purchasing information about technology, design documents, technological processes, technical standards and supporting software;

b) Expenses to support the leasing or purchase of equipment for inspection, measurement and quality control during the process of upgrading, perfecting technological processes, introducing new technology into production and pilot production; expenses for repair, purchase or leasing of assets (or facilities, equipment) serving the implementation of projects with technological innovation, creation, exploitation and development of intellectual property assets;

c) Expenses for raw materials, fuels, supplies and energy serving pilot production to adjust and complete technological processes and production lines (including pilot production of the first product batches);

d) Expenses for hiring expert consultants on technology transfer, negotiation of technology transfer contracts, legal aid, development of standards, technical regulations, productivity, quality, registration, protection, management and use of intellectual property rights; industrial design;

dd) Expenses for domestic and international training on technology transfer, technology absorption, operation and mastery, productivity, quality, intellectual property; technology management, technology administration and update of new technologies;

e) Expenses for outsourced services to support technology application, technology transfer, implementation of innovation tasks, support for innovation and startups; leasing laboratories or testing facilities;

g) Expenses for designing production technology and production lines; standardizing technical and technological documents; calculating and establishing operating parameters; designing and fabricating prototypes, molds and new products; testing, inspecting and evaluating product quality; adjusting technologies and new production lines;

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i) Expenses for testing, inspection and quality assessment of products involved in procurement using the state budget as prescribed in clause 2, Article 67 of the Law on Science, Technology and Innovation;

k) Expenses for financial support vouchers to promote innovation activities and product commercialization by facilitating businesses’ market access and encouraging users to experience new products and services.

5. Expenses to support interest payments for loans on projects or investment plans borrowed from credit institutions involving technology application, technology transfer, technological innovation and innovation for the implementation of the following content:

a) Expenses prescribed in clause 4, Article 6 of this Decree, excluding proposal for funding, procurement, or financial support;

b) Purchase of equipment, machinery and production lines to serve technology application, technology transfer, technological innovation and innovation activities.

6. Expenses to support the development of innovation systems, startup ecosystems; to promote a culture of innovation and startup including:

a) Expenses for training and capacity improvement for innovation systems, startup ecosystems, and intermediary organizations in the science, technology and innovation market; purchase of copyrights for training programs and startup coaching programs; organization of domestic and international training courses; hiring domestic and international experts;

b) Expenses for connecting national and international innovation and startup networks: organizing conferences and seminars to connect innovation and startup networks, supporting startups, domestic, regional and international venture capital; hiring experts to support and connect innovation and startups; expenses for international cooperation (outgoing and incoming delegations);

c) Expenses for supporting trade promotion for innovative enterprises, startups, and science and technology enterprises including: organization of conferences, seminars, trade missions, and trade promotion events domestically and internationally; travel allowances for personnel on domestic and international business trips; organization of international conferences and seminars; hosting foreign delegations visiting Vietnam to participate in fairs, exhibitions, market surveys, and negotiations with Vietnamese enterprises; conducting surveys and research to gather information and evaluate demand for products, sectors, and markets; hiring expert consultants to develop products, improve product quality, export products, and join foreign markets; experts for market research, consulting, and product evaluation; expenses for dissemination, advertisement, information provision, development and distribution of publications serving the trade promotion program;

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dd) Expenses for organizing province-level, national and international innovation and startup festivals; organizing demonstrations and introductions of new and advanced technologies; supporting costs for renting venues, transporting equipment, designing and setting up booths, and event promotion; organizing domestic and international conferences and seminars during the event; organizing innovation and startup competitions at the grassroots, sectoral, local, national and international levels;

e) Expenses for honoring and awarding projects, individuals and organizations in innovation and startup activities that achieve outstanding results in innovation competitions and awards organized by competent authorities at the local or national level, or recognized as prestigious international awards;

g) Expenses for communication and development of innovation and startup culture including: production of materials and publications in the form of journalistic works, publications, literary and artistic works, and television programs; organization of conferences to promote and disseminate exemplary cases of innovation and startups, and support successful startups in Vietnam; other relevant content (printing and distribution costs for print media and publications, communication expenses on social media);

h) Expenses as prescribed in point k, clause 4 of this Article;

i) Expenses for activities promoting and developing the science and technology market:

i1) Expenses for developing technology maps, technology innovation roadmaps, evaluating technology levels, standards, technology enterprises and startups ; databases on technology, patents and experts;

i2) Expenses for promoting transactions and connecting the science and technology market including: venue rental, communication, support for technology exhibition and introduction, travel and transportation costs for technology transfer promotion events; expenses for hiring experts to analyze technology dossiers, conduct surveys, prepare valuation reports, appraise, verify, evaluate technologies and facilitate technology transfer;

i3) Expenses for supporting the purchase of specialized software, professional documents and learning materials; organizing courses, thematic seminars and training on technology valuation, appraisal and brokerage of technology transfer;

i4) Expenses for market surveys and research.

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a) Expenses for ensuring and maintaining regular operations of public science and technology organizations including:

a1) Salaries and salary-related contributions;

a2) Organizational operations;

a3) Expenses for implementing tasks related to science, technology and innovation at grassroots level;

a4) Expenses for performing regular tasks according to the organization's functions including expenses for registration, protection, exploitation and management of intellectual property rights in accordance with intellectual property laws; expenses for researching, developing and completing basic standards;

a5) Additional funds (if any) based on the evaluation results of performance of public science and technology organizations as prescribed in Article 9 of this Decree;

b) Funds for tasks assigned by competent authorities to public science and technology organizations beyond the scope of recurrent expense estimate as prescribed in point a, clause 7 of this Article;

c) Recurrent expense funds for performing state-commissioned tasks and assigning tasks to public science and technology organizations;

d) Funds for public service activities funded by the state budget in the fields of science, technology and innovation as prescribed by competent authorities;

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e) Expenses for carrying out tasks of renovation, upgrading, expansion and new construction of project items that have been invested for public science and technology organizations;

g) Expenses for purchasing machinery and equipment for public science and technology organizations including: purchasing machinery and equipment to serve works of titles; purchasing machinery and equipment for general activities; purchasing specialized machinery and equipment for public science and technology organizations in accordance with standards and usage norms for public assets issued by competent authorities;

h) Expenses for outsourcing goods and services for public science and technology organizations to ensure regular operations and other necessary tasks as approved by the Prime Minister’s decision or by the decision of the President of province-level People’s Committee;

i) Funds for international cooperation activities serving science, technology and innovation: expenses for participation in regional networks and programs, expenses for international integration in science, technology and innovation; participation in international conferences and seminars; counterpart funds for international cooperation projects in science, technology and innovation;

k) Funds for science, technology and innovation activities shall not be used to cover the contents prescribed in points a.a1 and a.a2, clause 7 of this Article for public science and technology organizations that are public service providers not engaging in the fields of science, technology, and innovation including higher education institutions, hospitals, science and technology organizations under these higher education institutions and hospitals, except for public higher education institutions as prescribed in Decree No. 201/2025/ND-CP dated July 11, 2025 of the Government on the functions, tasks and powers of national universities.

8. Specialized public science and technology organizations shall apply the expenses prescribed in points a, b, c, d, dd, e, g, h and i, clause 7 of this Article, as well as the following expenses:

a) Remuneration expenses for scientists who are Vietnamese living abroad and foreign scientists working at organizations under an agreed mechanism based on the following principles:

a1) According to the nature, scale and level of impact of the assigned task related to science, technology and innovation;

a2) According to the qualifications, professional capacity and actual effectiveness in research, development, technology transfer or innovation activities of the individual;

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b) Expenses for travel, accommodation rental, daily meal allowances, and other relevant costs for Vietnamese scientists residing abroad and foreign scientists coming to work at the organization shall comply with regulations on reception regimes for foreign guests working in Vietnam for category-C delegations. Costs for airplane tickets, train tickets and bus tickets from the scientist’s residence to Vietnam and return shall comply with the travel expense regulations for short-term overseas business trips of state cadres and public employees funded by the state budget;

c) Expenses for scientific conferences, seminars, training, and professional development shall be at a minimum rate twice the prescribed norm for such activities;

d) Expenses in accordance with regulations on cooperation documents with international organizations and foreign partners;

dd) Other specific expenses decided by the Prime Minister based on the proposal of the Minister of Science and Technology.

9. Expenses for public science and technology organizations that are public innovation centers, public startup support centers, research and development centers and other organizations established by competent state authorities in accordance with Article 48 of the Law on Science, Technology and Innovation as prescribed in clause 7 of this Article.

National innovation centers, province-level innovation centers, innovation centers, national startup support centers, province-level startup support centers, and startup support centers that are public service providers, or organizations within universities or research institutes recognized in accordance with clause 2, Article 47 of the Law on Science, Technology and Innovation shall receive financial support for carrying out innovation tasks and innovation support activities.

10. Management expenses of NAFOSTED, NATIF, the foundations for development of science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities, and province-level People's Committees including:

a) Expenses for salaries, wages, remuneration, bonuses, allowances and salary-based contributions; expenses for rewards and welfare; allowances; and other expenses;

b) Expenses for the Foundation’s regular activities including: training expenses; expenses for party and union activities; expenses for office supplies, documents, books, and newspapers; expenses for electricity, water, telephone, postal and telecommunications, and office sanitation; expenses for purchasing goods and services; transportation costs and other expenses related to management activities;

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11. Expenses for the management of science, technology and innovation activities:

a) Expenses for management, task sourcing, inspection, supervision, evaluation, measurement of results and effectiveness, and digital transformation in science, technology and innovation activities including costs for hiring experts or independent consulting organizations (if necessary);

b) Expenses for the purchase of machinery and equipment including the purchase of specialized machinery and equipment serving state management tasks in science, technology and innovation;

c) Expenses for purchasing, developing, operating and maintaining information technology and digital technology solutions; developing, operating, and maintaining the centralized National Digital Platform for the management of science, technology, and innovation; the centralized National Information System on science, technology, and innovation; and other information systems and databases;

d) Expenses for outsourcing goods and services for authorities to ensure the management of science, technology and innovation, as well as other necessary tasks in accordance with the approval decision of the Prime Minister or the approval decision of the President of province-level People’s Committee for serving the management of science, technology and innovation activities;

dd) Expenses for the management activities of competent authorities regarding tasks related to science, technology and innovation; hiring independent expert consultants and outsourcing services for technology evaluation, appraisal and verification; analysis, assessment, and quality inspection of technology lines, products, machinery and equipment.

e) Expenses for organizing science, technology and innovation councils; technology evaluation, appraisal and verification councils; review councils, funding appraisal teams and independent experts; hiring organizations with functions of evaluation, review and supervision; remuneration for members of the management board of science, technology and innovation programs.

g) Expenses for organizing events, demonstrations and awards related to science, technology and innovation;

h) Expenses for hiring independent auditors;

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k) Expenses for organizing the development and evaluation of policies, strategies, and five-year master plans on science, technology and innovation development; and five-year plans on science, technology and innovation development of ministries, central authorities and local authorities including costs for hiring experts or independent consulting organizations, and organizing conferences, workshops, seminars, consultations, opinion collection and domestic surveys.

12. Expenses for supporting registration, protection, exploitation and management of intellectual property rights.

13. Expenses for activities related to standards, measurement and quality in accordance with laws on standards and technical regulations, laws on measurement, and laws on product and goods quality including: research, development and completion of national standards and technical regulations; research, development and completion of mechanisms and policies to promote productivity based on science, technology and innovation; scientific research, application and development of measurement technology; costs for sampling, testing, appraisal and inspection to serve quality surveys, quality control and resolution of complaints and denunciations regarding product and goods quality.

14. Expenses for developing, updating and purchasing access rights to databases serving science, technology and innovation activities.

15. Expenses for publishing results of domestic and foreign scientific research and technology development;

16. Expenses for training and professional development to enhance the expertise and skills of management staff and researchers in science, technology and innovation both domestically and abroad.

17. Expenses for dissemination of knowledge, communication, information activities, statistics, library services, and evaluation of science, technology and innovation activities; organization of domestic and international scientific conferences and seminars; awards and commendations for achievements in science, technology, innovation and technical improvement initiatives.

18. Expenses for international integration activities in science, technology and innovation including: participation in international conferences and seminars; membership in regional and international organizations and associations in the fields of science, technology and innovation; surveying and sourcing information on science, technology, innovation and technology suppliers abroad; participation in international science, technology and innovation events, forums and activities; annual fees for membership in international science and technology organizations; contributions to joint research funds with countries and international organizations under signed international treaties and agreements; counterpart funds for international science and technology projects; legal aid and consulting for organizations and individuals engaging in international cooperation to protect intellectual property rights and resolve disputes related to technology transfer; ensuring the operation of overseas science and technology representative networks; attracting and hiring experts and scientists who are overseas Vietnamese, foreign experts and scientists.

19. Expenses for implementing policies to support the attraction, utilization, incentives and rewards for individuals engaging in science, technology and innovation activities.

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21. The Ministry of Science and Technology shall take charge and cooperate with the Ministry of Finance in elaborating this Article regarding state budget spending regimes, standards, norms and rates for science, technology and innovation.

Article 7. Planning, budgeting and allocating annual state budget expenses for science, technology and innovation activities

1. Propose plans and budget estimates for annual science, technology and innovation activities:

a) Based on the Prime Minister’s Directive on the preparation of socio-economic development plans and the state budget estimates for the year, the Ministry of Science and Technology shall provide guidelines for ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees in developing plans and state budget estimates for science, technology and innovation activities for the planning year.

b) Based on the guidance from the Ministry of Science and Technology, ministries, ministerial-level agencies, government-affiliated agencies, other central agencies, and province-level People's Committees shall develop plans and budget estimates for science, technology and innovation activities of their respective ministries, sectors and provinces/cities, and submit them to the Ministry of Science and Technology.

For the local budget, the preparation of budget estimates for expenses related to items prescribed in Article 6 of this Decree shall exclude expenses for national science, technology and innovation programs; special science, technology and innovation tasks; and special national science, technology and innovation programs as prescribed in Articles 17 and 18 of the Law on Science, Technology and Innovation.

c) Ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees shall prepare budget estimates for expenses on science, technology and innovation activities in accordance with clause 2 of this Article;

d) Based on the capacity of the central and local state budgets, practical needs and the results of use of previously allocated budget of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees from the preceding year, the Ministry of Science and Technology shall consolidate and propose plans and budget estimates for annual science, technology and innovation activities to the Ministry of Finance for aggregation, preparation and submission to competent authorities for approval in accordance with laws on state budget and laws on science, technology and innovation.

Based on the proposals of province-level People's Committees requesting targeted central budget support for local budgets, and the principles of support and expenses as prescribed in clause 3, Article 4 of this Decree, the Ministry of Science and Technology shall propose the targeted additional central budget estimates for local budgets and submit them to the Ministry of Finance for consolidation, preparation and submission to competent authorities for approval in accordance with laws on state budget.

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a) The budget estimate for implementing science, technology and innovation tasks shall be prepared as follows:

a1) The annual preparation of budget estimates from the state budget for implementing state-funded or commissioned science, technology and innovation tasks includes budget estimates for ongoing science, technology and innovation tasks, and budget estimates for newly initiated science, technology and innovation tasks;

a2) The annual budget estimate from the state budget for newly initiated science, technology and innovation tasks funded or commissioned by the State shall be determined based on the total estimates of various types of tasks;

a3) The budget estimate for a specific type of science, technology and innovation task shall be determined as follows:

The expected number of newly initiated science, technology and innovation tasks of that type in the planning year multiplied by the average annual fund for science, technology and innovation tasks;

The average annual foundation for science, technology and innovation tasks is determined as follows: The annual total state budget expenses for implementing newly initiated science, technology, and innovation tasks over the preceding three consecutive years divided by the annual total number of newly initiated science, technology and innovation tasks over the preceding three consecutive years. The annual total number of newly initiated tasks over the preceding three consecutive years shall be determined based on the number of approved science, technology and innovation tasks for implementation. The annual total state budget expenses for implementing newly initiated science, technology and innovation tasks over the preceding three consecutive years shall be determined based on the amount of state budget funding and commissioning as prescribed in each Decision approving the science, technology and innovation task.

The average annual funding for science, technology, and innovation tasks shall be adjusted accordingly (if any) in response to changes in relevant policies and regulations, as well as adjustments for inflation or deflation as announced by competent authorities in accordance with the laws. Such adjustments shall be calculated proportionally based on the corresponding number of newly initiated science, technology and innovation tasks.

a4) The annual budget estimate from the state budget for implementing science, technology and innovation tasks shall be calculated based on the total estimates of all types of science, technology and innovation tasks.

b) The annual state budget estimate for support activities including: financial support, interest subsidies for loans to apply technology, transfer technology, innovate technology and innovation activities; support for activities to enhance science and technology capacity; support for the development of innovation systems, startup ecosystems, and promotion of innovation and startup culture. The annual estimate for newly initiated support activities shall not exceed 30% of the annual estimated state budget for science, technology and innovation tasks funded by the State and expected to be newly initiated;

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The budget estimation for public science and technology organizations shall be determined based on the evaluation of their operational results in accordance with Article 9 of this Decree.

The budget estimate for implementing foundational science, technology and innovation tasks for public science and technology organizations includes budget estimates for ongoing tasks and budget estimates for newly initiated tasks that are prepared in accordance with point a, clause 2 of this Article.

d) The preparation of budget estimates for expenses for management of science, technology and innovation foundations as prescribed in clause 10, Article 6 of this Decree shall be carried out annually based on the expected volume of activities and the estimated funds for implementation;

dd) The preparation of budget estimates for science, technology and innovation management activities as prescribed in clause 11, Article 6 of this Decree shall be carried out annually based on the expected volume of activities and the estimated funds for implementation;

e) The total budget for expenses for management of science, technology and innovation foundations as prescribed in points a and b, clause 10, Article 6 of this Decree, and the operating expenses for managing science, technology, and innovation tasks of these funds as prescribed in points dd, e, and i, clause 11, Article 6 of this Decree shall not exceed 5% of the annual budget estimate for implementing ongoing and newly planned science, technology and innovation tasks commissioned or funded by the State as prescribed in point a of this clause. Among this, the budget for expenses for management of the foundations prescribed in points a and b, clause 10, Article 6 of this Decree shall not exceed 2% of the total budget as prescribed in this point;

g) The preparation of regular state budget estimates to implement the tasks as prescribed in points a and b of this clause shall be conducted on the principle of avoiding overlap. Ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees are responsible for approving the expected number of tasks based on the proposed list of science, technology and innovation tasks; planned support activities; planned management activities; and the estimated necessary funds for execution of points a, b, c, d and dd of this clause in accordance with laws on science, technology and innovation;

h) The preparation of budget estimates for tasks related to purchase, repair, renovation and upgrade of assets and equipment shall be conducted in accordance with Decree No. 98/2025/ND-CP dated May 06, 2025 of the Government on preparation of estimates, management, use and statement of recurrent state budget expenses for purchase, repair, renovation and upgrade of assets and equipment; payment for goods and services rental; repair, renovation, upgrade, expansion and new construction of work items in invested construction projects; and other necessary tasks.

3. Allocation of budget estimates for expenses for science, technology and innovation activities

a) After receiving the budget estimates assigned by the Prime Minister or province-level People's Committees, the first-line budget units at the central and local levels shall allocate and assign the budget estimates for expenses for science, technology and innovation activities to subordinate budget-using units and lower-level budget units in accordance with laws on state budget, except as otherwise prescribed in point b of this clause;

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b1) Funds for grants and commissioned tasks to implement science and technology programs and tasks; funds for supporting activities to enhance national science and technology capacity shall be allocated to NAFOSTED.

b2) Funds for grants and commissioned tasks to implement innovation programs and tasks; interest rate subsidies; funds for supporting for technology application, technology transfer, technological innovation and innovation; supporting for activities to develop innovation systems, startup ecosystems, and to promote innovation and startup culture shall be allocated to NATIF.

b3) Funds for commissioned and grant tasks to implement science, technology and innovation activities; interest rate subsidies; funds for supporting technology application, technology transfer, technological innovation and innovation; supporting the development of innovation systems, startup ecosystems and the promotion of innovation and startup culture shall be allocated to the foundations for development of science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees.

c) The Ministry of Finance and the Department of Finance shall conduct inspections of the budget estimates that first-line budget units have allocated to state budget-using units for expenses on science, technology and innovation activities in accordance with laws on state budget.

4. Management and use of state budget expenses for activities in science, technology and innovation

a) For funds for implementation of science, technology and innovation tasks, the organization responsible for carrying out the task shall manage and use the funds in accordance with clause 4, Article 63 of the Law on Science, Technology and Innovation;

b) For funds from the state budget for science, technology, and innovation activities not covered as prescribed in point a of this clause, the authority, organization or unit shall comply with clause 4, Article 63 of the Law on Science, Technology and Innovation, and carry out payments through the State Treasury in accordance with laws on state budget;

c) Adjustments to the state budget estimates for science, technology and innovation activities shall comply with laws on state budget;

d) Ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees are responsible for inspecting and supervising the implementation of state budget expenses for science, technology and innovation in accordance with the provisions of laws on state budget.

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6. Ministries, ministerial authorities, governmental authorities, province-level People’s Committees, budget-utilizing authorities and units shall bear full responsibility for the dossiers, procedures and authority for task approval; for preparing and proposing budget estimates; for allocating, managing, using and finalizing state budget funds for science, technology and innovation activities to implement tasks in accordance with this Decree. They must ensure compliance with laws on science, technology and innovation, state budget, and other relevant regulations; strictly handle violations; review and clarify the responsibilities of heads, collectives and individuals within ministries, central authorities, People’s Committees at all levels, and budget management and utilization units if violations are detected by inspection or audit authorities as prescribed in this Decree.

Article 8. Planning, budgeting and allocation of state budget for investment in development of science, technology and innovation activities

1. Prepare annual budget estimates for expenses for investment in development of science, technology and innovation activities:

a) Based on guidelines for preparing state budget estimates for science, technology and innovation activities issued by the Ministry of Science and Technology; based on the five-year master strategy, program and plan for science, technology and innovation; the five-year plan for science, technology and innovation of ministries and central authorities; the medium-term public investment plan for the central budget period approved by competent authorities; and the capacity for disbursement of public investment capital, ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees are responsible for consolidating the annual public investment plan in accordance with laws on public investment.

b) For other development investment tasks prescribed in clauses 3 and 4, Article 5 of this Decree, the procedures and authority for approving the tasks shall comply with regulations in the Decree on certain articles of the Law on Science, Technology and Innovation regarding science, technology, and innovation programs and tasks, as well as certain regulations on promoting scientific research, technology development and innovation activities. Based on the approved task decisions, disbursement progress and the results of inspected and evaluated work items, ministries, ministerial authorities, governmental authorities, other central authorities and province-level People's Committees are responsible for consolidating the annual plan for other development investment expenses of their ministries, sectors and provinces/cities. This plan includes the list and allocated fund for each program, task and project accompanied by explanations and dossiers which shall be submitted to the Ministry of Science and Technology and the Ministry of Finance in accordance with laws on state budget, laws on science, technology and innovation, and other relevant regulations;

c) For development investment programs, tasks and projects prescribed in points a and b of this clause, the Ministry of Science and Technology shall review, consolidate and propose to the Ministry of Finance for consolidation and report to the competent authorities for approval of development investment capital from the state budget for science, technology and innovation activities in accordance with laws on public investment, science, technology and innovation.

2. The payment, statement and consolidation of development investment expenses for science, technology and innovation activities shall be comply with laws on state budget and public investment.

3. Ministries, ministerial authorities, governmental authorities, other central authorities, province-level People's Committees, budget-utilizing authorities and units shall bear full responsibility for the dossiers, procedures and authority for project approval; for preparing and allocating budget estimates; for managing, using and finalizing state budget funds for science, technology and innovation activities to implement projects as prescribed in this Decree. They shall ensure full compliance with the laws; strictly handle violations; review and clarify the responsibilities of heads, collectives and individuals within ministries, central authorities, province-level People's Committees, and budget management units if violations are detected by inspection or audit authorities as prescribed in this Decree.

4. Ministries, ministerial authorities, governmental authorities, other central authorities, and province-level People’s Committees are responsible for inspecting and supervising the implementation of state budget expenses for investment in development of science, technology and innovation activities in accordance with laws on state budget and public investment.

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1. Principles for preparing and allocating state budget expenses to ensure and maintain regular operations for public science and technology organizations:

a) The funds allocated to ensure and maintain regular operations for public science and technology organizations in the field of science, technology and innovation as prescribed in point a, clause 7, Article 6 of this Decree shall be used to enhance operational efficiency, transparency and accountability of public science and technology organizations;

b) Ensure compliance with the scale, tasks, implementation capacity and output results of public science and technology organizations; combining fixed funding with supplementary funding based on the evaluation of performance of public science and technology organizations;

c) The preparation of budget estimates to ensure and maintain regular operations for public science and technology organizations is the recurrent funds allocated for autonomy that are prepared based on a stable period (05 years). The state budget estimate to ensure and maintain regular operations for public science and technology organizations for the next stable period (5 years) includes the fixed funding amount of the public science and technology organization and the supplementary funding based on the evaluation results of performance of the public science and technology organization during the adjacent stable budget period;

d) Encourage public science and technology organizations to strengthen mobilization of social resources in accordance with laws on state budget; promote PPP models in implementing science, technology and innovation tasks between research institutes, universities and enterprises in accordance with laws on PPP investment.

2. The recurrent state budget expenses to ensure and maintain regular operations for public science and technology organizations according to the expense items prescribed in point a, clause 7, Article 6 of this Decree consist of two components:

a) The fixed funding of public science and technology organizations includes salaries and salary-related contributions; organizational activities; expenses for implementing foundational science, technology and innovation tasks; expenses for performing regular tasks according to the organization's functions that are carried out autonomously based on the financial autonomy plan of the public science and technology organization;

a) Supplementary funding for public science and technology organizations shall be up to a maximum of 10% of the funding for implementing foundational science, technology and innovation tasks included in the fixed funding of the public science and technology organization as prescribed in point a of this clause during the adjacent stable period. The amount of supplementary funding is determined based on the evaluation results of performance of the public science and technology organization during the adjacent stable period and calculated in accordance with clause 3 of this Article;

c) The allocation of supplementary funding based on the evaluation of performance of public science and technology organizations shall ensure transparency, publicity and be subject to the inspection and evaluation mechanisms of competent authorities;

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3. a) Supplementary funding (if any) for public science and technology organizations is calculated based on the evaluation score achieved by the organization according to the performance evaluation as prescribed in Decree elaborating the implementation of some articles of the Law on Science, Technology and Innovation regarding information, statistics, evaluation, digital transformation and general matters. The maximum evaluation score for a public science and technology organization is 100 points. The level of state budget expense for supplementary funding for public science and technology organizations shall be converted based on the evaluation score achieved by the organization in the preceding evaluation period as follows:

a) For public science and technology organizations scoring from 80 to 100 points: the state budget shall ensure that the allocation equals to 100% of the fixed funding of the public science and technology organization as specified in point a, clause 2 of this Article, plus supplementary funding determined corresponding to the performance evaluation score of the organization.

The supplementary funding for public science and technology organizations shall be determined as follows: for each 1 point scored above the threshold of 80 points, the organization shall receive additional funding equal to 0,5% of the funding for implementing foundational science, technology and innovation tasks included in the fixed funding of the public science and technology organization as prescribed in point a, clause 2 of this Article during the adjacent stable period.

The supplementary funding for public science and technology organizations shall be determined when the competent authority announces the evaluation results of performance of the organization. The preparation and allocation of the state budget estimate for the supplementary funding of public science and technology organizations shall comply with the time of the annual state budget preparation and allocation. The supplementary funding is allocated with financial autonomy and can be carried over annually in accordance with laws on state budget.

b) Public science and technology organizations scoring from 60 to 79 points shall be allocated up to 100% of the fixed funding of the public science and technology organization as prescribed in point a, clause 2 of this Article during the adjacent stable period.

c) Public science and technology organizations scoring below 60 points shall be allocated up to 90% of the fixed funding of the public science and technology organization as prescribed in point a, clause 2 of this Article during the adjacent stable period.

Competent state management authorities shall organize the evaluation of performance of public science and technology organizations in the following year. If the evaluation score of a public science and technology organization reaches the levels prescribed in points a or b of this clause, the organization shall be assigned fixed and supplementary funding in accordance with point a, clause 2, and points a and b, clause 3 of this Article for the next stable period (05 years) accordingly. If the evaluation score of the public science and technology organization remains below 60 points for three consecutive evaluations over three consecutive years, competent state management authorities shall consider and decide the operation of the organization in accordance with the laws.

4. The evaluation results of performance of public science and technology organizations are updated annually by the Ministry of Science and Technology and publicly disclosed on the National Information System on Science, Technology, and Innovation.

Article 10. Fixed funding for tasks related to science, technology and innovation

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2. For funding by instalments according to the research content except for the costs of purchasing assets equipped for the implementation of science, technology and innovation tasks, outsourcing services without standards or norms, and overseas business trips, the following expense items are allowed to apply the fixed funding mechanism:

a) Labor remuneration and fees for task performance;

b) Expenses for raw materials, fuels, supplies, specimens, tools, spare parts, low-cost quickly deteriorating items, energy, documents, data, books, newspapers and reference magazines;

c) Expenses for hiring domestic and international experts;

d) Expenses for hiring scientific and technical services with established standards, norms and unit prices;

dd) Expenses for seminars, scientific conferences, forums, scientific dialogues; expenses for surveys, investigations and data collection for implementation of the tasks;

e) Expenses for publishing research results and intellectual property;

g) Expenses for general management of the task at the in-charge organization;

h) Other expenses that are appropriate to the nature of the task and approved by the appraisal authority.

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a) The fixed funding rate is based on:

a1) Proposed budget estimate in the description of the science, technology and innovation task;

a2) Current standards, norms, and unit prices;

a3) For funding by instalments based on research content, the fixed funding is determined according to each proposed research content for fixed funding and the expenses subject to fixed funding mechanism as prescribed in clause 2 of this Article. The funding of the research contents under fixed funding shall be consolidated into the total fixed funding for the science, technology, and innovation task.

b) The methods for determining fixed funding for science, technology and innovation tasks include:

b1) Commitment of the in-charge organization regarding the product and output quality (for lump sum funding);

b2) The evaluation results of the Science and Technology Council regarding the science, technology and innovation task in accordance with laws on science, technology and innovation.

4. The funding for implementing science, technology and innovation tasks shall be disbursed either in a lump sum or according to the progress of the task. The labor remuneration expenses shall be included in the revenue of the in-charge organization to pay individuals participating in the task, supporting the task, and other leasing contents, except for expenses paid to individuals not belonging to the in-charge organization.

5. For lump sum funding, the commitment to the final product serves as the basis for evaluating results upon completion and statement of the science, technology and innovation task. The in-charge organization implementing the science, technology and innovation task has the autonomy to adjust expense items and categories, decide on the use of labor remuneration funds to hire domestic and international experts based on the agreed funding level. Detailed statement by each expense item, category, total funding for the task is not required to be finalized according to the fixed funding for science, technology, innovation and digital transformation based on the evaluation results of the final product.

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7. The in-charge organization implementing the science, technology and innovation task shall have autonomy and be accountable for deciding on the use of fixed funding. The in-charge organization is responsible for ensuring that the funds are used appropriately, efficiently and economically; maintaining documents and bearing accountability upon request by competent authorities.

8. The authority managing the science, technology and innovation task is responsible for determining the fixed funding item and rate; monitoring the implementation progress; conducting irregular inspection when necessary; evaluating acceptance results based on the committed products; and handling violations as prescribed by laws if the in-charge organization fails to complete the task.

Article 11. Handling of funds in cases where science, technology and innovation tasks do not achieve the expected final results

In cases where all regulations on the management of science, technology and innovation tasks, implementation procedures, research content and risk prevention measures have been fully complied with, but the task results do not achieve the objectives, the in-charge organization implementing the science, technology and innovation task is not required to return the state budget funds that have been used appropriately and within the scope as prescribed in the description of the science, technology and innovation task, except for the following funding:

1. Funds allocated for the science, technology and innovation task in the deposit account at the State Treasury of the in-charge organization implementing the task that remain unused after deducting the payables of the in-charge organization. The payables of the in-charge organization are the amounts that the organization has not yet paid for goods, services and labor performed.

2. Funds that the in-charge organization implementing the science, technology, and innovation task has advanced to relevant organizations or individuals for carrying out research content or supplying goods and services but have not yet been executed. These funds are determined corresponding to the work, goods or services that are not yet performed.

3. Funds that have been used against the objectives, scope and research content as prescribed in the description of the science, technology and innovation task.

Section 2. SOCIAL RESOURCES FOR SCIENCE, TECHNOLOGY AND INNOVATION

Article 12. Social investment sources for science, technology and innovation

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2. Expenses of enterprises funding scientific research, technological development and innovation; expenses for scientific research, technology development and innovation.

3. Donations received from domestic and foreign enterprises without affiliated relationships, organizations and individuals for scientific research, technology development and innovation activities.

Article 13. Expenses for foundations for development of science and technology of enterprises, organizations and public service providers

1. State-owned enterprises are allowed to use their foundation for development of science and technology to implement key projects and strategic technology development projects in accordance with clause 2, Article 31 of the Law on Science, Technology and Innovation as follows:

a) Hiring or paying salaries to domestic and international experts on a full-time, part-time, advisory or specialist basis for conducting research tasks, training or technology transfer. Hiring experts shall be conducted by direct appointment and direct contract signing. The fee for hiring experts is determined based on market principles, through agreement between parties based on the nature of the task, duration of engagement and level of expertise. The specific fee amount is decided by the organization or enterprise. Types of contracts for hiring experts include service contracts; turnkey research contracts by phase; and collaborative research contracts with intellectual property rights sharing.

b) State-owned enterprises are permitted to use their foundations for development of science and technology to directly purchase foreign technologies, products and equipment to support analysis, learning, technology decoding and strategic technology development through supplier appointment and price negotiation. Products and equipment, after analysis and decoding, are considered consumable materials and are not included in the asset value of the enterprise.

The purchases must comply with the objectives, content, and scope of the approved scientific research, technology development and innovation tasks. State-owned enterprises have full autonomy to select, negotiate and directly purchase foreign technologies, products and equipment. They must comply with regulations on import and export, national security, intellectual property and technology safety. State-owned enterprises shall bear full responsibility for the efficiency and legality of the purchase and use of technologies, products and equipment;

c) State-owned enterprises are allowed to use their foundations for development of science and technology to directly purchase technological know-how. They have full autonomy to select, negotiate and directly purchase technological know-how. Such purchases shall align with the objectives, content and scope of the approved scientific research, technology development and innovation tasks. State-owned enterprises shall bear full responsibility for the efficiency and legality of the acquisition and use of technological know-how;

d) State-owned enterprises are permitted to use their foundations for development of science and technology to implement tasks and research cooperation projects with foreign partners to access and master technology. They must comply with regulations on protection of state secrets, intellectual property rights protection under intellectual property laws, and other relevant laws. The implementation of tasks and research cooperation projects with foreign partners shall comply with clause 3 of this Article;

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State-owned enterprises have the autonomy to decide on acquisitions and mergers according to their science and technology development strategy in accordance with the development strategy of their sector and the orientation of the owner-representative authority. Technological know-how acquired through mergers, acquisitions of enterprises, laboratories, research and development centers shall serve the development of strategic technologies. Acquisitions and mergers as prescribed in this point shall ensure transparency, prevent conflicts of interest, and bear full accountability.

Acquisitions and mergers shall only be carried out when all the following conditions are met: the key project or strategic technology development project is implemented based on a task assigned to the state-owned enterprise by the Prime Minister or the managing ministry including clear investment plan, technology analysis, transfer plan and effective use of the technological know-how after acquisition; agreement from the state owner-representative authority on the merger or acquisition of the enterprise, laboratory, or research and development center.

Foreign acquisitions or domestic acquisitions and mergers shall be conducted through direct negotiations and are not required to undergo bidding or auction processes.

State-owned enterprises have the right to appoint and contract with domestic and foreign consulting units or experts to support the appraisal and negotiation process.

The value of assets and equipment of the enterprise, laboratory, research and development center after acquisition, as well as technological know-how after enterprise merger, shall be accounted for and recorded in the accounting books in accordance with applicable laws.

e) Other necessary expenses serving research, approach, purchase of technological know-how and decoding foreign advanced technology.

2. Enterprises, organizations and public service providers are allowed to use their foundations for development of science and technology to acquire, merge, invest in or co-invest in startup projects and startups in accordance with point d, clause 2, Article 66 of the Law on Science, Technology and Innovation as follows:

a) Enterprises, organizations and public service providers using the foundation for development of science and technology to acquire, invest in or co-invest in startup projects or startups shall establish internal management regulations including principles and criteria for selecting startup projects and startups, as well as the authority and supervision of reporting on acquisitions, investments or co-investments in startup projects and startups;

b) The principles for acquisition, investment or co-investment in startup projects and startups include transparency and openness; management of financial and technological risks; measures to prevent conflicts of interest; compliance with approved investment risk limits in the annual science and technology development foundation usage plan; and adherence to internal procedures for appraisal, approval, contract signing and reporting supervision;

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d) The proposal dossier for approval to acquire, invest in or co-invest in an startup project or startup includes the description of the startup project or startup; objectives of the acquisition, investment or co-investment; proposed amount for acquisition, investment or co-investment; preliminary analysis of risks and benefits;

dd) The acquisition, investment or co-investment in startup projects or startups shall involve internal appraisal or hiring an independent unit to assess risks including technology (feasibility); market (potential and competition); and finance (cash flow, costs, profits). The appraisal results are mandatory prerequisites before approving the investment, acquisition or co-investment in startup projects or startups;

e) The decision on approval of the acquisition, investment or co-investment in an startup project or startup shall be issued by the Board of Directors or the authorized representative of the enterprise, organization or public service provider based on the appraisal results; the proposed amount for acquisition, investment or co-investment; and comparison with the approved risk threshold and total approved risk level;

g) The signing of contracts for acquiring, investing in or co-investing in startups shall include clear terms for capital withdrawal or loss handling; provisions on the innovative startup’s responsibility to fulfill commitments;

h) Mechanism for supervision, evaluation and reporting on the activities of acquiring, investing in or co-investing in startup projects and startups includes:

Establishing a periodic supervision mechanism (quarterly or biannually) for the activities of the startup project/startup; financial performance; and emerging risk indicators.

Developing and issuing procedures for handling risks/losses when the following occur: investment suspension; capital withdrawal; change in the form of cooperation.

i) State-owned enterprises, public organizations and public service providers using the foundation for development of science and technology to acquire, invest in or co-invest in startup projects or startups are responsible for reporting regularly on an annual or ad hoc basis to the state owner-representative authority; and to competent financial authority (if necessary).

State-owned enterprises, public organizations and public service providers using the foundation for development of science and technology to acquire, invest in or co-invest in startup projects or startups shall conduct independent annual audits of the investment portfolio; relevant financial reports; and the fulfillment of commitments.

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a) Labor costs including salaries, wages and salary-related contributions for researchers, engineers and technical specialists directly engaging in scientific research, technology development and innovation activities;

b) Direct costs serving scientific research, technology development and innovation activities including costs of materials, fuel and electricity used for scientific research, technology development and innovation; costs for developing and producing equipment and molds used for testing and experiments; costs of samples and prototypes that are not fixed assets and expenses for common experimental solutions; fees for testing trial products; expenses for maintenance, calibration of equipment, testing and rental of research equipment;

c) Depreciation costs of assets serving scientific research, technology development and innovation activities including depreciation of machinery, equipment and laboratories used for scientific research, technology development and testing; depreciation costs of intangible assets such as patents, industrial designs, semiconductor layout designs, plant varieties and breeding materials;

d) Testing and inspection expenses including expenses for measurement services, product testing, and equipment calibration; expenses for renting laboratories or testing facilities outside the enterprise;

dd) Intellectual property expenses including fees for registration, maintenance and renewal of protection certificates for patents, industrial designs and software copyrights; fees for exploiting intellectual property rights; costs of hiring experts, lawyers or industrial property representation services to draft patent descriptions or perform other relevant services;

e) Technology transfer and acquisition expenses including expenses for purchasing technology, software and exclusive usage rights; expenses associated with technology transfer from research institutes and universities;

g) Expenses for external scientific research, technology development and technological innovation services under outsourcing contracts or cooperative research tasks with institutes, universities, scientific and technological organizations;

h) Expenses related to process and product innovation including expenses for designing prototypes and new product models; expenses for testing new production processes; expenses for consulting on business model improvements;

i) Management and support expenses for scientific research, technology development and innovation activities including expenses related to managing scientific research, technology development and innovation tasks;

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4. Enterprises, organizations and public service providers are allowed to use the foundation for development of science and technology to organize and carry out research activities abroad and to hire foreign partners to conduct research activities abroad without going through an investment project while complying with regulations on protection of state secrets and intellectual property rights as prescribed in intellectual property laws.

5. Support for scientific research, technology development and innovation activities of enterprises, organizations and public service providers including:

a) Provision of infrastructure and technical equipment: Establishment of research and development organizations, analysis centers, testing, inspection, calibration and product testing centers; information infrastructure and databases of enterprises and statistics on science, technology and innovation activities; machinery and equipment serving science, technology and innovation activities; expenses for operation, maintenance, repair and upgrade of infrastructure, technical facilities and machinery serving science, technology and innovation activities; quality management systems of enterprises, organizations and public service providers;

b) Purchase of usage rights and ownership: Technological know-how; technical knowledge about technology transferred in the form of technology solutions, technological processes, technical designs, technical solutions, formulas, specifications, drawings, technical diagrams, computer programs and data information; production rationalization solutions, technological innovations; intellectual property rights; initiatives; related documents, research results, and products both domestic and foreign; database access accounts, software usage rights; fees for services supporting scientific research, technology and technological innovation activities for enhancing productivity, product quality, improving and developing new products of enterprises, organizations and public service providers;

c) Purchase of machinery, equipment, software, technical documents and accompanying services for technological innovation serving production and business activities to partially or fully replace existing technology with more advanced technology, enhance productivity, product quality, or improve and develop new products of enterprises, organizations and public service providers;

d) Expenses for training for scientific research, technology development and innovation for enterprises, organizations and public service providers;

dd) Expenses for cooperation activities in science, technology and innovation with domestic and foreign organizations, individuals and enterprises including activities for surveying and searching for domestic and international partners and technology needs; expenses for joint research collaboration tasks; and operating expenses of joint laboratories;

e) Expenses for researching, developing and applying internal standards; evaluating, testing, inspecting, certifying, promoting and commercializing new products and new technologies; expenses for consulting, registration and maintenance of reputable domestic and international quality and food safety certifications; registration, protection, exploitation and management of intellectual property rights of enterprises, organizations and public service providers;

g) Expenses for large-scale trials and demonstrations of new plant varieties, livestock breeds and new cultivation processes.

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Article 14. Management and use of the foundation for development of science and technology of enterprises, organizations and public service providers

1. Enterprises, organizations and service providers have the right to autonomy and are fully responsible for the management and use of the foundation for development of science and technology. Expenses from the foundation for development of science and technology of enterprises, organizations, and public service providers as prescribed in Article 13 of this Decree shall be supported by documents in accordance with the foundation’s expense, usage, self-declaration regulations and legality of these documents. Expenses from the foundation for development of science and technology of enterprises shall not overlap with the expenses that enterprises allocate for research, development and innovation activities as prescribed in Article 15 of this Decree.

2. Voluntary contributions, legal donations and gifts for carrying out the tasks of the foundation for development of science and technology shall be executed according to agreements with the contributing organizations or individuals (if any); and comply with laws of Vietnam and international treaties to which Vietnam is a signatory. Voluntary contributions, donations and gifts that harm national interests, security, defense or violate laws on anti-corruption, money laundering, terrorism financing and other unlawful activities shall not be accepted.

3. At the end of the fiscal year, any remaining unused voluntary contributions, donations and gifts may continue to be used by the enterprise, organization or public service provider for the expense purposes of the foundation for development of science and technology without any time limitation on usage and without the obligation to remit to the state budget.

Article 15. Enterprises’ expenses for research, development and innovation

1. Enterprises are eligible for deductible expenses when determining taxable income for corporate income tax in accordance with point b.b5, clause 1, Article 9 of the Law on Corporate Income Tax, sponsorships (in cash or in-kind) to organizations or individuals for conducting scientific research, technology development and innovation according to the following contents:

a) The recipients of sponsorship as prescribed in this clause include NAFOSTED; NATIF; foundations for development of science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities, province-level People’s Committees; the national venture capital foundation, local venture capital foundations; science and technology organizations established as prescribed by laws; experts, scientists and individuals performing scientific research, technology development and innovation tasks as prescribed by laws on science, technology and innovation; organizations authorized to mobilize sponsorship for scientific research, technology development and innovation that are established and operating in accordance with the laws;

b) The dossier on determining sponsorship expenses as prescribed in this clause includes a sponsorship written confirmation, or document (in paper or electronic form) confirming the sponsorship expense that include signatures and stamps of the representative of the sponsoring enterprise and the representative of the sponsored party (in case the sponsored party is an enterprise); signatures of the sponsored party if they are an expert, scientist or individual; invoices or vouchers for the sponsorship in cash or in-kind;

c) The sponsored party is responsible for using and distributing received sponsorship funds for correct purposes of scientific research, technology development and innovation activities. In cases where the sponsorship funds are used for purposes other than those intended for scientific research, technology development and innovation activities, such acts shall be handled in accordance with the laws.

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a) Expenses for conducting scientific research and technology development activities including salaries, wages and salary-related allowances for personnel engaging in scientific research and technology development; expenses serving scientific research and technology development activities; expenses for leasing and using research results; expenses for royalties, transfer of ownership, and usage rights of industrial property objects; depreciation costs and rental fees for machinery and equipment used in scientific research and technology development in laboratories; expenses for pilot production at laboratory that is not yet ready for commercialization; and expenses for intellectual property protection registration;

b) Expenses for carrying out innovation activities including salaries, wages and salary-related contributions for personnel participating in innovation activities; fees for hiring domestic and international expert consultants engaging in innovation activities; expenses for using innovation services, digital spaces and online support; expenses for pilot production, prototype creation, technology completion and product testing; expenses for attending short-term focused training courses domestically and abroad; expenses for participating in fairs and exhibitions to showcase products both domestically and internationally;

c) Expenses for outsourcing scientific research, technology development and innovation.

The dossier on determining expenses on outsourcing scientific research, technology development and innovation includes the outsourcing contract; handover and acceptance minutes of the product; contract liquidation documents, relevant documents, invoices and vouchers.

d) Expenses for technology decoding and purchasing technological know-how;

dd) Information related to the implementation of scientific research and technology development activities as prescribed in point a of this clause includes:

dd1) Proposed content of activities and the estimated budget for scientific research and technology development activities; relevant enterprise resolutions. The proposed content of scientific research and technology development activities includes objectives, scope, implementation timeline, research methods, estimated budget with research and development costs separated from other expenses, and the expected research and development results (evaluation metrics, number of patents, utility solutions, prototypes, etc.);

dd2) Expected personnel/Personnel carrying out scientific research and technology development activities; expected resources/resources used for scientific research and technology development activities such as machinery, equipment, software, materials serving scientific research and technology development;

dd3) Progress reports, experiment logs, test reports, acceptance reports and reports on the results of scientific research and technology development activities;

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dd5) Evidence of scientific research and technology development results such as research findings, prototype products, patent applications, scientific articles, testing certificates, intellectual property protection certificates and product quality certificates;

e) Expenses for scientific research and technology development activities of enterprises prescribed in point a of this clause are eligible for additional deductions as prescribed in clause 3, Article 9 of the Law on Corporate Income Tax if they satisfy the following conditions, scope of application and timeline:

e1) Enterprises are responsible for proactively submitting information related to the implementation of their scientific research and technology development activities as prescribed in point dd of this clause to the tax authority where the enterprise is registered for corporate income tax. The additional deduction for scientific research and technology development activities will only be applied if enterprises comply with this regulation;

e2) Enterprises shall self-declare the application of additional deductions in accordance with clause 3, Article 9 of the Law on Corporate Income Tax and relevant guidelines during the period of conducting scientific research and technology development activities in accordance with the corporate income tax calculation period as prescribed by the Law on Corporate Income Tax;

e3) Enterprises are responsible for storing dossiers proving scientific research and technology development activities, as well as relevant financial records in accordance with accounting laws; and are obliged to provide explanations at the request of competent authorities;

e4) Enterprises are encouraged to develop a management system for scientific research and technology development activities that complies with the national standard ISO 56000 on innovation management (or equivalent).

3. The Ministry of Finance shall cooperate the Ministry of Science and Technology to elaborate clause 2 of this Article.

Chapter III

FINANCIAL MECHANISMS FOUNDATIONS FOR DEVELOPMENT OF SCIENCE, TECHNOLOGY AND INNOVATION

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Article 16. Foundations for development of science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees

1. Ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees (hereinafter referred to as “ministries, central authorities and local authorities) may establish foundations for development of science, technology and innovation according to actual circumstances. In cases where such foundations are established, the Ministry, central authority or local authority shall assign an existing authority or unit within its organizational system to perform the task of managing the foundation for development of science, technology, and innovation (hereinafter referred to as “foundation managing authority”). The existing authority or unit assigned to manage the foundation shall not be the one designated as the state management conduit for science, technology and innovation activities nor the financial authority of the Ministry, central authority or local authority.

2. A foundation’s organization includes the foundation management council, the foundation supervisory board and the foundation managing authority. The foundation management council is established by the Minister, the heads of governmental authorities or other central authorities, and the Presidents of province-level People’s Committees. The foundation management council shall operate either full-time or part-time that are arranged in accordance with practical conditions without increasing the current total staff quota of a Ministry, central authority or local authority. The foundation supervisory board shall operate on a part-time basis and be appointed or dismissed by the foundation management council. Members of the supervisory board shall not be spouses, parents, children or siblings of members of the foundation management council, the foundation director, foundation deputy directors, chief accountant, or head of the foundation’s financial authority. The working regime, duties, powers, organization and activities of the foundation management council, supervisory board, and foundation managing authority are prescribed in the charter on the organization and operation of the foundation for development of science, technology and innovation (hereinafter referred to as “Foundation”) issued by the ministers, ministerial authorities, governmental authorities, other central authorities and the Presidents of province-level People’s Committees.

3. The management expenses and the expenses for activities carried out in conformity with the Foundation’s functions shall be included in the annual state budget estimates in accordance with clause 10, Article 6; points d, dd, e and g, clause 2, Article 7 of this Decree.

4. Expenses for commissioning and sponsoring science, technology and innovation programs and tasks of ministries, central authorities and local authorities; financial support and interest rate subsidies for technology application, technology transfer, technological innovation and innovation activities; support for activities enhancing science and technology capacity; support for innovation development activities, startup ecosystems, and promotion of innovation and startup culture carried out by foundations for development of science, technology, and innovation of ministries, central authorities and local authorities shall be comply with clauses 1, 2, 3, 4 and 5, Article 6 of this Decree. The local foundation for development of science, technology, and innovation shall provide financial support and interest rate subsidies for technology application, technology transfer, technological innovation and innovation to small and medium-sized enterprises in provinces/cities. The annual state budget planning and determination of the total state foundation allocated to the foundation to implement the contents prescribed in clause 2 of this Article shall not include voluntary contributions, donations or gifts from organizations or individuals.

5. The commissioning, sponsorship and support of the Foundation as prescribed in clause 4 of this Article shall ensure transparency, openness, thriftiness and compliance with the laws. Organizations and individuals shall self-declare and take responsibility for the accuracy of the data and information in their dossiers on commissioning, sponsorship or support. The Foundation shall not commission, sponsor or support organizations or individuals who have already received commissioning, sponsorship or support from other state commissioning, sponsorship or support sources for the same item. The Foundation shall not support expenses for organizations or individuals who have made voluntary contributions or donations to the Foundation.

6. The receipt, management and use of lawful voluntary contributions, donations and gifts from organizations and individuals shall be comply with the laws on science, technology, and innovation, and laws on state budget. The foundation managing authority shall develop an annual financial plan for the allocation and use of lawful voluntary contributions, donations and gifts from organizations and individuals in accordance with its assigned functions and tasks; propose to the ministry, ministerial authority, governmental authority, other central authority or province-level People’s Committee for approval in accordance with the laws. At the end of the fiscal year, any unused voluntary contributions, donations and gifts shall be retained by the foundation for use and are not required to be returned to the state budget.

7. Ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees are responsible for inspecting and supervising the activities of the foundation managing authority to ensure that the disbursement and use of the allocated state budget are timely and effective.

8. The evaluation of the results and effectiveness of the Foundation’s activities shall be conducted as follows:

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b) Ministries, central authorities and local authorities shall decide whether to conduct self-assessments or to hire organizations or individuals with appropriate functions to perform independent evaluations of the Foundation’s effectiveness. The funding for evaluating the results and effectiveness of the Foundation’s activities shall be allocated from the recurrent budget for science, technology, innovation and digital transformation.

Article 17. Management and use of state budget funds for commissioning and sponsoring the implementation of science, technology and innovation tasks; supporting activities through foundations for development of science, technology and innovation of ministries, ministerial authorities, governmental authorities, other central authorities and province-level People’s Committees

1. The organizations in charge of the implementation of science, technology and innovation tasks commissioned or sponsored by the Foundation; and organizations or individuals receiving support from the Foundation are responsible for:

a) Issuing internal expense regulations to manage the use of funds for implementing science, technology and innovation tasks commissioned or sponsored by the Foundation; and ensure the openness and transparency in their application;

b) Using the funds for correct objectives and purposes; ensure efficiency and thriftiness;

c) Finalizing accounts with the foundation managing authority. The dossiers and records for statement include:

c1) Science, technology and innovation contracts;

c2) For fixed funding expense: A detailed statement specifying the volume of completed works including the completed tasks and the corresponding funds used which must be confirmed by the project manager, chief accountant or head of the financial department, and the head of the in-charge organization;

c3) For expense that are not provided with the fixed funding: A detailed statement specifying the volume of completed works including completed tasks and corresponding funds used which must be confirmed by the project manager, chief accountant or head of the financial department, and the head of the in-charge organization; dossiers and proofs demonstrating reasonable and lawful use of the funds;

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c5) For direct support payment dossiers (interest subsidies, financial support, operational support): decision on approval of the support; support contract; evaluation results of the support activities upon completion; contract liquidation minutes; summary of settlement data certified by the State Treasury where the organization or individual opened the account to receive funds for implementing the support activities, confirming actual expenditures;

d) The organization in charge of the science, technology, and innovation task shall be responsible for preparing the budget estimate dossiers, managing, using and finalizing the funds for the task’s implementation in accordance with the laws; storing the task’s dossiers and documents proving the use of funds; and ensuring that all documents are reasonable and lawful; and ready to provide explanations at the request of competent authorities;

dd) The use of funds for purposes, scopes or research contents different from those prescribed in the description of scientific, technological, and innovation task, as well as other violations causing loss of state budget funds, shall be subject to the recovery of the misused funds and penalties in accordance with the laws.

2. The foundation managing authority is responsible for:

a) Developing regulations on management of funds for the implementation of science, technology and innovation tasks and submit them to the managing authority and the higher-level financial authority;

b) Finalizing funds for organizations in charge of science, technology, and innovation tasks in accordance with regulations on fund management for implementing these tasks and with the progress schedule;

c) Verifying payment documents and records in accordance with point d, clause 1 of this Article, and preparing the transfer documents to the State Treasury where the account is opened in order to make payments from the Foundation’s deposit account to the organization in charge of the science, technology and innovation task;

d) Organizing inspections and evaluations to ensure that the funds used by organizations in charge of science, technology and innovation tasks are for the intended purposes in accordance with requirements and the disbursement schedule;

dd) Considering and deciding on hiring an independent auditor to audit the use of funds by organizations in charge of science, technology and innovation tasks that are commissioned, sponsored, or supported by the Foundation based on the timely preparation and submission of financial reports to the managing authority for review and finalization, as well as the consolidation of statement to be submitted to the Ministry of Finance. The funding for hiring the independent auditor shall be allocated within the management expenses for science, technology and innovation tasks of the foundation managing authority.

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Section 2. NATIONAL FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY

Article 18. Functions of National Foundation for Science and Technology Development

The National Foundation for Science and Technology Development (NAFOSTED) is an agency responsible for sponsoring and commissioning science and technology programs and tasks; supporting activities to enhance national science and technology capacity.

Article 19. Purposes of NAFOSTED

1. Promote basic research, applied research and technology development activities through commissioning and sponsoring scientific and technological tasks and programs with a focus on prioritizing tasks and programs in order to address interdisciplinary and interregional issues; special science, technology and innovation tasks; and special national science, technology and innovation programs.

2. Develop and enhance the research and technology development capacity of individuals and organizations engaging in scientific and technological activities.

Article 20. Operational principles of NAFOSTED

1. Publicly and transparently disclose management regulations and information about the Foundation’s activities.

2. Organize the selection process to sponsor and commission the implementation of science and technology programs and tasks, and support activities to enhance national science and technology capacity based on principles of democracy and equality; fully comply with the regulations of competent authorities including mechanisms that prioritize female scientists.

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4. The research content of science and technology tasks and activities supporting the enhancement of national science and technology capacity funded by NAFOSTED shall not overlap with content or activities that have been or are being carried out using other state budget funds.

5. The receipt, management and use of the operating budget of NAFOSTED must ensure transparency and openness. NAFOSTED shall not accept voluntary contributions, donations or gifts from domestic organizations and individuals, international organizations, or foreign organizations and individuals that harm national interests, security and defense, or violate laws on anti-corruption, money laundering, terrorist financing and other illegal activities.

Article 21. Tasks and powers of NAFOSTED

1. Tasks

a) Perform tasks in accordance with operational objectives serving state management in the field of science, technology and innovation;

b) Receive, manage and properly use the operational budget sources as prescribed in Article 22 of this Decree;

c) Implement reporting and accounting regimes in accordance with regulations of public service providers;

d) Comply with inspections, examinations and audits conducted by competent state management authorities in accordance with the laws;

dd) Manage and use assets in accordance with laws on management and use of public assets;

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g) Manage the organization and personnel of NAFOSTED in accordance with the laws;

h) Perform other tasks in accordance with directives of the Minister of Science and Technology.

2. Powers

a) Organize and operate in accordance with principles and objectives of NAFOSTED;

b) Carry out commissioning and funding, in whole or in part, for science and technology programs and tasks through selection, competitive selection or assignment;

c) Organize the selection and implementation of support for activities to enhance national science and technology capacity;

d) Inspect, supervise and evaluate the implementation and use of funds for science and technology tasks and activities to enhance national science and technology capacity;

dd) Organize research, provide advice and develop documents for proposal to competent authorities for issuance of legislative documents, strategies, plans, priority orientations and other documents serving the management and implementation of funding and support by NAFOSTED;

e) Suspend or submit to competent authorities for suspension of funding, purchase, support, allocation of funds, or recover funds disbursed for funding, purchase, support or allocation when it is discovered that organizations or individuals violate regulations on the use of funds from NAFOSTED and relevant laws;

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h) Aggregate annual plans and funding requirements;

i) Cooperate with domestic and foreign organizations and individuals, as well as international organizations, on matters related to the activities of NAFOSTED.

Article 22. Budget and expenses for management and operations of NAFOSTED

1. State budget sources:

a) Funding for sponsorship, support and management activities of NAFOSTED shall be allocated from the budget for science, technology, innovation and digital transformation activities.

Annually, based on the guidelines of the Ministry of Science and Technology, NAFOSTED shall prepare plans and budget estimates for the Foundation’s science, technology, and innovation activities as prescribed in point e, clause 2, Article 7 of this Decree, and submit them to the Ministry of Science and Technology for appraisal and approval.

Based on the budget estimates assigned by competent authorities, the Ministry of Science and Technology shall notify NAFOSTED in writing of the total funding amount for sponsoring and commissioning science and technology tasks, as well as supporting activities to enhance national science and technology capacity. Based on the notification, NAFOSTED shall develop a financial plan and submit it to the Ministry of Science and Technology for approval.

b) Funding allocated through NAFOSTED for science and technology tasks assigned by the Ministry of Science and Technology;

c) The annual funding for sponsorship, commissioning and support from NAFOSTED shall be disbursed in no more than three installments. The initial disbursement shall be based on the amount proposed by the Foundation but shall not exceed 40% of the total planned funding for sponsorship, commissioning and support for the year, and shall be allocated before March 31 of the budget year. Subsequent disbursements shall be determined based on the Foundation’s proposals, the progress of previously disbursed funds and the disbursement plan for the following period. The final disbursement must be made before September 01 annually;

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2. Sources outside the state budget:

a) Voluntary contributions, donations, gifts and lawful grants from domestic organizations and individuals, international organizations, foreign organizations and individuals;

b) Revenue from interest on deposits and other lawful income.

3. Expenses for the activities of NAFOSTED:

a) Expenses for sponsoring and commissioning science and technology tasks as prescribed in clauses 1 and 2, Article 6 of this Decree.

b) Expenses for supporting activities to enhance national science and technology capacity as prescribed in clause 3, Article 6 of this Decree.

c) Expenses for management, administration and operations as prescribed in clauses 10, 11, 12, 13, 14, 15, 16, 17, 18 and 19, Article 6 of this Decree.

Article 23. Financial and accounting mechanisms of NAFOSTED

1. NAFOSTED shall apply the administrative and public accounting regime in accordance with accounting laws.

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3. NAFOSTED shall organize accounting and statistical work in accordance with applicable laws; prepare and record original documents, update accounting books; ensure full, timely, truthful, accurate and objective reflection of economic and financial activities.

4. Manage and use state budget funds commissioned, sponsored and supported by the NAFOSTED in accordance with Article 17 of this Decree.

5. The statement of state budget expenses for tasks and activities commissioned, sponsored and supported by NAFOSTED shall be as follows:

a) Statement of annual science and technology tasks and capacity-building support activities:

NAFOSTED is responsible for reviewing the statement of state budget expenses for the organizations in charge of science and technology tasks and for notifying the reviewed statement data of science and technology tasks commissioned and sponsored by the Foundation; compiling the finalization report to submit annually to the Ministry of Science and Technology based on the following:

a1) Tasks under lump sum funding: decisions on approval of the tasks, approval of support, and relevant decisions; science, technology and innovation contracts; support contracts; evaluation results of tasks and support activities; data confirmed by the State Treasury at the place where the organization or individual opens the account to receive funds for task implementation and support activities for verifying actual expenses;

a2) Tasks under funding by instalments according to research content shall be based on point a.a1, clause 5 of this Article and expense dossiers and records for the works that are not provided with fixed funding corresponding to the completed works as confirmed by the project manager, chief accountant, and head of the in-charge organization in the table for determination of value of completed works.

b) Statement of completed science and technology tasks and capacity-building support activities:

b1) Tasks under funding by instalments shall be based on point a.a1, clause 5 of this Article and the annual notification of the reviewed statement data of state budget expenses for tasks and activities commissioned, sponsored and supported by the Foundation;

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6. NAFOSTED shall transfer surplus funds from the current fiscal year to the next year in accordance with the Law on State Budget and relevant documents.

Article 24. Supervision, evaluation and explanation

1. Internal supervision

a) The Foundation shall establish an internal supervision system to supervise the compliance with the laws, operational regulations and the effective use of financial resources, science and technology tasks;

b) Supervision includes periodic, ad hoc and independent post-audit supervision after task completion. The supervision results shall be disclosed in accordance with the laws and reported to the management council of NAFOSTED and the Ministry of Science and Technology.

2. Performance evaluation

a) NAFOSTED shall organize periodic evaluations of the effectiveness of funding, commissioning and support in achieving strategic objectives and the effective use of state budget resources;

b) The evaluation results shall serve as the basis for adjusting funding, commissioning and support for plans for resource allocation and improvement of management skills;

c) NAFOSTED may cooperate with independent organizations to conduct mid-term and final evaluations.

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NAFOSTED is responsible for disclosing financial information related to activities under the Foundation’s management and operation.

4. Risk management shall comply with relevant laws.

Article 25. Handling of financial risks during the implementation of science, technology and innovation tasks

1. Principles for handling of risks

a) Comply with the laws;

b) Have clear and transparent grounds;

c) Have proofs and opinions of independent experts (when necessary);

2. Methods for handling of risks

a) Exemption, reduction or extension of repayment time;

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c) Not recovering the remaining advances;

d) No penalties for violations, no interest on late payments.

3. Financial risk cases include but are not limited to:

a) The results of the task do not meet the objectives but have fully complied with task management regulations, implementation procedures, research content and risk prevention measures;

b) Losses of assets, equipment and funds due to force majeure events;

c) The in-charge organization is dissolved, bankrupt, or no longer has valid juridical personality;

d) The advances cannot be recovered due to legitimate reasons.

4. Risk management does not alter the accountability of the in-charge organization regarding the use of funds.

Section 3. NATIONAL TECHNOLOGY INNOVATION FOUNDATION

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The National Technology Innovation Foundation (NATIF) is an agency responsible for funding and commissioning the implementation of innovation programs and tasks; providing interest rate support and funding to apply technology, transfer technology, innovate technology and innovation; supporting the development of the innovation system, the creative startup ecosystem, and promoting the culture of innovation and creative startups.

Article 27. Tasks and powers of NATIF

1. NATIF has the following tasks:

a) Receive and manage financial resources:

a1) Receive funding from the state budget, voluntary contributions, lawful donations and gifts from domestic and foreign enterprises, organizations and individuals;

a2) Manage and use non-state budget funds according to agreements with contributors (if any) and in accordance with regulations on funding, commissioning, support and the Foundation’s internal expense regulations;

b) Implement funding, commissioning and support activities:

b1) Announce priority orientations, requirements, content and guidelines for funding, commissioning and support proposals;

b2) Receive, review applications and announce results;

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b4) Inspect and supervise the progress, professional quality and effectiveness of fund utilization;

b5) Suspend, halt or terminate funding, commissioning or support upon detection of violations.

c) Perform administrative and organizational tasks:

c1) Resolve complaints, denunciations and petitions in accordance with the laws;

c2) Manage and use assets and human resources in accordance with the laws;

c3) Issue internal regulations serving the Foundation’s operations within its authority;

c4) Cooperate domestically and internationally on activities related to the Foundation’s functions and tasks;

c5) Perform other tasks in accordance with regulations of the Minister of Science and Technology.

2. NATIF has the following powers:

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b) Be proactive in selecting tasks, projects, activities and beneficiaries for funding, commissioning and support based on priority orientations, the laws and approved budget plans;

c) Sign contracts, cooperation agreements, and hire organizations, experts, scientists and other individuals to support the Foundation’s management activities;

d) Have the right to adjust content, suspend or terminate funding, commissioning or support in cases of detected violations or failure to ensure effectiveness;

dd) Refuse funding, commissioning or support if the application does not meet requirements or violates criteria and conditions as prescribed by laws;

e) Carry out cooperation activities, provide professional and technical support in science, technology and innovation with domestic and foreign enterprises, organizations and individuals in accordance with agreements and the Foundation’s functions and tasks;

g) Perform other powers as prescribed by law.

Article 28. Operational principles of NATIF

1. Publicly disclose on the website of NATIF all procedures, management regulations, application submission deadline, evaluation criteria and results of funding, commissioning and support.

2. The evaluation of funding, commissioning and support for tasks and activities shall be conducted democratically, transparently to ensure the objectivity and suitability for each type of task and activity.

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4. The principle of trust shall be ensured. Enterprises and organizations shall self-declare and be responsible for the legality, accuracy and truthfulness of the information, data and content in the dossiers on funding, commissioning and support from NATIF.

5. NATIF shall not provide funding, commissioning or support to organizations or individuals that have already received or are currently receiving funding, commissioning or support from other state budget sources for the same content or items. Any duplication detected after approval shall be handled in accordance with the laws including the recovery of funds and penalties that are imposed on organizations or individuals with false declarations or fraud activities.

Article 29. Operating budget of NATIF

1. State budget sources:

a) Based on the financial plan approved by the Ministry of Science and Technology, the Ministry of Finance shall disburse funds via payment orders into the Foundation’s deposit account opened at the State Treasury for operational expenses in accordance with the functions of NATIF to carry out funding, commissioning and support activities in accordance with the Foundation’s functions;

b) Funding allocated through NATIF for science, technology and innovation tasks assigned by the Prime Minister and the Ministry of Science and Technology;

c) The management expenses of NATIF allocated annually by the Ministry of Science and Technology include the expense items as prescribed in clause 10, Article 6 of this Decree;

d) The funding prescribed in point a, clause 1 of this Article for NATIF shall be disbursed in no more than three installments annually. The initial disbursement shall be based on the amount proposed by the Foundation but shall not exceed 40% of the total planned funding for the year and shall be allocated before March 31 of the budget year. Subsequent disbursements shall be determined based on proposals from NATIF based on the disbursement progress of previously allocated funds. The final disbursement shall be made before September 01 each year.

2. Sources outside the state budget:

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b) Interest on deposits and other lawful income in accordance with the laws;

c) Support sources in the form of valuable in-kind contributions, assets, services or financial transfers into the account of NATIF at commercial banks.

NATIF is responsible for receiving, managing, accounting for, and using funds appropriately for their intended purposes and beneficiaries; ensuring transparency, openness and compliance with the laws.

3. Expenses for functional activities of NATIF:

a) Expenses for sponsoring and commissioning science and technology tasks as prescribed in clauses 1, 2 and 4, Article 6 of this Decree;

b) Expenses for interest rate support as prescribed in clause 5, Article 6 of this Decree;

c) Expenses for supporting the development of the innovation system, startup ecosystem and promoting the culture of innovation and startups as prescribed in clause 6, Article 6 of this Decree;

d) Expenses for management and administration as prescribed in clauses 10, 11, 12, 13, 14, 15, 16, 17, 18 and 19, Article 6 of this Decree.

Article 30. Management, use and payment/statement of the stage budget

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NATIF shall manage and use the state budget as prescribed in clause 1, Article 29 of this Decree in accordance with laws on science, technology and innovation, state budget, and relevant legal laws.

2. Management and use of state budget funds for innovation tasks commissioned, sponsored and supported by the National Technology Innovation Fund shall comply with Article 17 of this Decree.

3. The statement, approval of statement, verification and consolidation of statement shall comply with laws on state budget; science, technology and innovation.

Article 31. Receipt, management and use of non-state budget funds of NATIF

1. Principles of receipt and accounting

a) Non-state budget sources shall be transferred into the account of NATIF at commercial banks or received in the form of valuable in-kind contributions, assets and services. NATIF is responsible for organizing the receipt, management and use of these resources appropriately for their intended purposes and beneficiaries, effectively, and in accordance with laws on state budget and relevant laws;

b) All non-state budget capital shall be accounted for and tracked separately, and fully reflected in the financial statements and annual statement reports of NATIF;

c) The receipt of in-kind contributions, assets or valuable services shall be properly valued, recorded and used according to the intended purpose of the donation, gift or sponsorship.

2. Principles of management and use

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b) The use of non-state budget funds shall comply with the functions, tasks and operational objectives of NATIF;

c) Expenses from non-state budget funds shall be comply with internal expense regulations of NATIF. Regulations on norms, standards and spending regimes applicable to state budget funds shall not apply;

d) NATIF is authorized to use lawful non-state budget revenues and deposit interest income to cover activities such as capacity building, additional income supplements, collective welfare, expert contracts, communication, training and other support for the Foundation’s staff, officials and employees. Expenses shall be made according to the norms prescribed in the internal expense regulations and be not subject to the ceiling limits prescribed under the financial autonomy mechanism applicable to public service providers;

dd) The use of funds from non-state budget sources shall comply with the principles of thriftiness, efficiency, transparency, openness and accountability in accordance the laws;

e) Unused non-state budget revenues in a year are permitted to be carried forward to the following year for use and must be fully accounted for in the annual financial reports of NATIF.

3. Reporting, supervision and auditing

a) NATIF is responsible for publicly disclosing information on the receipt and use of non-state budget funds in accordance with the Law on Accounting, Law on State Budget, and financial transparency regulations;

b) The use of non-state budget funds shall be subject to inspection and examination by competent state authorities upon request.

Article 32. Financial and accounting mechanisms of NATIF

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2. Consider and decide on hiring independent auditors to audit the use of funds by the in-charge organization of science, technology and innovation tasks. The cost of hiring independent auditors shall be allocated within the management expenses for science, technology and innovation tasks of NATIF.

Article 33. Financial risk management in the implementation of science, technology and innovation tasks; and the supervision, evaluation and explanation of NATIF

1. The management of financial risks during the implementation of science, technology and innovation tasks by NATIF shall comply with Article 25 of this Decree.

2. The supervision, evaluation, explanation and risk management of NATIF shall comply with Article 24 of this Decree.

Chapter IV

IMPLEMENTATION

Article 34. Implementation clause

1. This Decree comes into force from October 14, 2025.

2. Decree No. 95/2014/ND-CP dated October 17, 2014 of the Government on investment and financial mechanisms for science and technology activities shall be annulled.

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4. Articles 5, 6, 7 and 10 of Decree No. 88/2025/ND-CP dated May 13, 2025 of the Government elaborating some articles of Resolution No. 193/2025/QH15 dated February 19, 2025 of the National Assembly on piloting certain special mechanisms and policies to create breakthroughs in the development of national science, technology, innovation and digital transformation shall be annulled.

5. Decision No. 37/2014/QD-TTg dated September 08, 2014 of the Prime Minister won conditions for establishing funds for development of science and technology of ministries, ministerial authorities, governmental authorities, provinces and cities shall be annulled..

6. In cases where the documents prescribed in this Decree are amended, supplemented or replaced, the newer documents shall prevail.

Article 35. Transitional provision

1. Regarding regulations on NAFOSTED: For contributions from NAFOSTED of state-owned enterprises that have been paid to NAFOSTED as prescribed in point a, clause 5, Article 11 of Decree No. 95/2014/ND-CP dated October 17, 2014 and any accrued interest, NAFOSTED shall remit these amounts to the state budget.

2. Regarding regulations on NATIF:

a) The operating capital of the Foundation as prescribed in Decision No. 04/2021/QD-TTg dated January 29, 2021 of the Prime Minister on the Charter on organization and operation of NATIF transferred into the Foundation’s deposit account at the State Treasury shall be used to cover expenses for the Foundation’s functions and management in accordance with this Decree.

b) Regarding the projects of the Foundation currently implemented under Decision No. 04/2021/QD-TTg dated January 29, 2021 of the Prime Minister on the Charter on organization and operation NATIF and other relevant documents: the principal and interest collected annually from these projects shall be transferred into the Foundation’s deposit account at the State Treasury to carry out the Foundation’s functions as prescribed in this Decree.

3. The balance of NAFOSTED of state-owned enterprises prescribed in Decree No. 95/2014/ND-CP dated October 17, 2014 of the Government on investment and financial mechanisms for science and technology activities which has not been fully used or remains unused after the state-owned enterprises have paid corporate income tax on the portion of NAFOSTED but not fully used or unused, and on the interest accrued from that corporate income tax, may be either reversed into the business results or retained in the NAFOSTED to carry out science, technology and innovation activities (if needed) in accordance with the regulations of NAFOSTED.

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a) The Ministry of Science and Technology shall issue the five-year master plan for development of science, technology and innovation before December 31, 2025;

b) Ministries, central authorities and local authorities shall issue their five-year plans for development of science, technology and innovation before March 31, 2026;

Article 36. Implementation

The Minister of Science and Technology shall be responsible for organizing the implementation and guiding the enforcement of this Decree.

Ministers; Heads of ministerial authorities; Heads of governmental authorities; Presidents of People's Committees of provinces and cities; Heads of relevant authorities and organizations are responsible for implementing this Decree.

ON BEHALF OF THE GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Ho Duc Phoc

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