A comprehensive and enabling legal framework is fundamental to the growth of Vietnam’s startup ecosystem. Over the years, Vietnam has made significant strides in establishing and refining policies to support startups – from national-level regulations to local initiatives – ensuring a solid legal infrastructure that fosters innovation and entrepreneurship.
Vietnam’s legal framework for startups is deeply integrated with broader policies related to businesses, science and technology, intellectual property, education, finance, and labor. These interconnected domains collectively form the foundation for a thriving innovation ecosystem. The regulatory landscape addresses key areas such as technology transfer, commercialization, startup incubation, and investment attraction.
The government’s commitment was formalized through Decision No. 844/QĐ-TTg (May 18, 2016), which approved the National Program to Support the Startup Ecosystem until 2025. This decision tasked the Ministry of Science and Technology and other related ministries with developing legal frameworks and incentives tailored for startups, incubators, accelerators, investors, and mentors.
Startups are also supported under the Law on Supporting Small and Medium Enterprises (2017) and related decrees (e.g., Decree 39/2018/NĐ-CP, Decree 80/2021/NĐ-CP). These policies offer assistance in areas such as access to technology, shared facilities, incubation, product development, and IP consultation.
Key legal documents such as the Law on Technology Transfer (2017) and Decree 76/2018/NĐ-CP provide mechanisms for enterprises to access funds from the Science and Technology Development Fund, supporting R&D, innovation, and commercialization. These laws also encourage the adoption of foreign technologies.
University-led entrepreneurship is supported by policies like the Amended Law on Higher Education (2018) and Decree 109/2022/NĐ-CP. These promote startup culture, innovation centers, and business incubators within universities, and allow the establishment of university-owned science and technology funds.
Vietnam has issued regulations facilitating the establishment and operation of venture funds, as seen in the Law on Supporting SMEs (2017) and Decree 38/2018/NĐ-CP. Tax incentives for startups investors include reduced corporate income tax rates, exemptions on import duties for R&D equipment, and land-use incentives.
The newly issued Decree 24/2024/NĐ-CP allows startups to participate in public procurement without meeting revenue or experience thresholds for six years after launching their innovative products. This provides early-stage startups an opportunity to scale via government contracts.
Major cities like Hanoi, Ho Chi Minh City, and Da Nang have introduced pilot mechanisms to further support startups. These include tax exemptions for startups and investors, support for innovation project development, and grants for prototype development and testing in high-tech zones.
Decree 94/2020/NĐ-CP introduced preferential mechanisms for National Innovation Centers (NIC), including credit, visa, and IP-related incentives. These centers act as hubs to attract domestic and international startups and investors, serving as a model for future policy expansion.
Vietnam has also launched several national-level programs targeting specific groups in the startups ecosystem. These include:
- Women’s Startup Support Program (Decision 939/QĐ-TTg)
- Student and Youth Startup Support Programs (Decisions 1665/QĐ-TTg and 897/QĐ-TTg)
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