New rule sets unified framework for science, technology and innovation funds nationwide

The Ministry of Science and Technology has recently issued, for the first time, a model organisation and operation charter of science, technology and innovation development funds of ministries, ministerial-level agencies, government-attached agencies, central agencies and provincial-level People’s Committees, with a view to ensuring the uniform application from the central to local levels.

Effective as of April 16, Circular 17/2026/TT-BKHCN is expected to establish a comprehensive legal framework for these funds, providing a foundation for unified governance while maintaining proactiveness and flexibility in practice.

Accordingly, a science, technology and innovation development fund is defined as a not-for-profit state financial institution with the legal person status and entitled to receive and use resources from the state budget and other lawful sources.

It is tasked with financing the implementation of programmes and the performance of tasks in science, technology and innovation; providing financial and interest rate support for technology application, transfer and innovation; supporting activities to enhance science and technology capacity; assisting the development of the innovation system and the start-up ecosystem; and promoting an innovation and entrepreneurship culture.

Notably, all governance activities of the funds are results-oriented and closely linked to the market demand, contributing to an effective innovation ecosystem connecting the State, research institutes and universities, and enterprises.

The circular introduces a co-financing mechanism between the State and enterprises, in which state budget funds will be prioritised for basic research and application stages, while enterprise contributions will gradually increase in line with technological maturity and commercialisation potential. This approach helps mobilise social resources and strengthen linkages between research, application and the market.

A key change introduced by the circular is the shift from input-based to output-based management. Specifically, funds will be disbursed on the basis of evaluation milestones associated with task performance progress and results, allowing adjustment, continuation or termination of tasks based on evaluation results.

In addition, a risk management mechanism tailored for research activities is introduced, allowing unforeseen risks, if compliant with set procedures, to be considered for acceptance. Stage-based evaluations will serve as a basis for making decision on task continuation, adjustment or termination.-