The Ministry of Finance is finalizing a draft decree to replace Decree No. 94/2020/NĐ-CP of the Government, which regulates mechanisms and preferential policies for the National Innovation Center (NIC). The new draft continues to propose breakthrough mechanisms and policies for NIC to help build a comprehensive ecosystem that supports innovative startups.
Deputy Prime Minister Nguyễn Chí Dũng emphasized that this is an urgent task to unlock resources that promote innovation and entrepreneurship. He asked delegates to focus on three key issues: defining the official name of the national innovation fund; determining whether external support and funding for NIC are part of the state budget and the relevant legal framework; and land-related incentives for NIC.
With a pioneering and guiding mission, over the past five years, NIC has implemented numerous initiatives and is recognized as having one of the best innovation ecosystems in the country. It has actively engaged enterprises, universities, support organizations, and startups from developed countries, gradually establishing, leading, and connecting innovation activities across sectors, regions, and businesses.
However, practical operations have revealed certain challenges and gaps, requiring research and a new decree to replace Decree No. 94/2020/NĐ-CP (referred to as Decree 94).
According to the Ministry of Finance, the viewpoint that science and technology (S&T), innovation, and national digital transformation are key breakthroughs has been clearly stated at all levels. Many legal provisions have been amended to better meet development requirements.
Deputy Minister of Finance Nguyễn Đức Tâm noted that the draft decree has been thoroughly studied and developed to complete the legal basis for implementing preferential and facilitative policies within the current legal framework, enabling NIC to fulfill its role in the innovation and startup ecosystem.
The draft also aims to fulfill the tasks of attracting intellectuals, domestic and international experts, large corporations, and high-tech enterprises from advanced countries, contributing to transforming the growth model, enhancing productivity, and strengthening national competitiveness in the long term.
NIC is a new, non-profit model that operates without using the state budget. It is a fully self-financed public service unit, both in terms of investment and regular expenditures. Over the years, NIC has operated effectively and contributed significantly to the development of science and technology in Vietnam.
As a self-financing public service unit in the economic sector, NIC provides paid services to offset costs and generate reasonable surpluses. However, due to the lack of clear regulations on public services in the economic sector supporting innovation and startups, NIC currently lacks legal foundations and favorable mechanisms to offer certain services—particularly regarding resources for innovative startups.
Currently, receiving and using official development assistance, concessional loans, grants, and funding support is challenging due to complicated existing regulations that do not fully meet development needs.
In supporting the innovation and startup ecosystem, financial support remains a critical factor for startup success. In Vietnam, while there are funds supporting S&T, innovation, and startups, most are state-funded, making their usage mechanisms complex and not well-suited for startup assistance.
There is still no strong policy or mechanism enabling NIC to mobilize non-budget resources to support startup capital.
Deputy Minister Nguyễn Đức Tâm stated that the new draft decree inherits and supplements the general incentive mechanisms of Decree 94 for NIC and individuals and organizations operating within NIC. It aims to make NIC a true “locomotive” promoting and spreading innovation in Vietnam.
Specifically, the draft includes updated procedures and adjustments for labor permits for foreigners working at NIC, ensuring compliance with current regulations. It also maintains provisions on credit incentives for investment projects by startups and individuals operating within NIC, as well as NIC’s own investment projects that fall under the list of projects eligible for state development credit.
Notably, Article 8 of the draft supplements provisions on the rights, mechanisms, procedures, and processes for receiving and using grants and donations within the country. These provisions aim to ensure a clear, favorable, transparent, and simplified legal basis for handling grants and funding from domestic and international organizations and individuals supporting innovation and startups.
For individuals and organizations operating at NIC, the draft retains the key provisions of Decree 94 to ensure consistency in general preferential policies for enterprises and investment projects recently issued. It also adds mechanisms for NIC to establish a National Innovation Fund to enhance its investment resources and better support innovative startups.
Experts believe the draft decree should include breakthrough policies to further promote NIC’s role in encouraging startup development. They also stress that the mechanism must be genuinely favorable, open, and appropriate to the practical needs of NIC.
Dr. Nguyễn Quang Phúc, Chairman of the Vietnam Innovation Network in South Korea, emphasized that Vietnam’s innovation and startup landscape shows strong potential and positive signs. Therefore, further improving the legal framework for NIC remains essential, including breakthrough policies to attract resources and create a favorable environment for the startup community to thrive.
Regarding this matter, Deputy Prime Minister Nguyễn Chí Dũng directed that the draft must closely follow the Party’s and Government’s guidelines and policies on developing S&T, innovation, and national digital transformation. The goal is to remove barriers, close policy gaps, and create breakthrough, special, and preferential mechanisms that foster and encourage innovation.
Deputy Chief of the Government Office Phạm Mạnh Cường confirmed that the Government Office agrees with the Ministry of Finance’s responses and supports retaining the name “National Innovation Fund.”
The Government Office also proposed applying the current legal framework in combination with amending relevant regulations to resolve issues related to land use fee exemptions and reductions for NIC.
Deputy Prime Minister Nguyễn Chí Dũng highly appreciated the contributions of ministries and agencies in the drafting process of the new decree replacing Decree No. 94/2020/NĐ-CP dated August 21, 2020. The draft is being developed based on Resolution 57-NQ/TW to remove obstacles and create exceptional and specialized mechanisms and policies that promote science, technology, and innovation.
With general consensus on the Ministry of Finance’s report and explanations, Deputy Prime Minister Nguyễn Chí Dũng requested that the Ministry continue to revise and finalize the draft based on feedback from ministries and relevant agencies.
Source: National Agency for Science and Technology Information and Statistics
