Global Economic Times

Activating Public-Private Partnerships (PPP) in Science, Technology, and Innovation, with Full Support from the Vietnamese Government: Global Economic Times Reporter / Updated : 2025-07-04 06:27:50

The Vietnamese government has established a new legal framework, including unprecedented incentives, to actively encourage private sector participation in science, technology, innovation (STI), and digital transformation. Government Decree 180/2025/ND-CP, which came into effect on July 1, specifies detailed rules and policies for public-private partnership (PPP) projects, expressing a strong commitment to attracting private investment and strengthening the nation's scientific and technological capabilities.

Key Contents of the New PPP Framework

Decree 180/2025/ND-CP offers diverse cooperation methods and incentives to attract private sector participation. PPP projects can be applied to a wide range of fields, including high-tech, core technologies, digital infrastructure, construction of shared digital platforms, digital competency training, and digital transformation services.

Diversification of Cooperation Methods: In addition to existing PPP models, joint ventures utilizing public assets and other legal forms of cooperation are now possible, lowering the barrier for private companies to participate.
Enhanced Tax Benefits: Companies participating in PPP projects can deduct 200% of their actual research and development (R&D) expenditures when calculating corporate income tax. This is a key incentive that significantly reduces the R&D investment burden on companies and encourages innovative activities.
Land-Related Incentives: Support is provided through reductions or exemptions from land use fees and land lease fees, helping to reduce initial investment costs. This will be an important factor in attracting the large-scale investments required for PPP projects.
Intellectual Property Protection and Sharing: Project participants are recognized as having ownership of products, technology platforms, data, and software produced by agreement, and are protected under intellectual property and technology-related laws. Ownership of original data directly produced by state agencies belongs to the state unless otherwise agreed upon, but after-tax profits from commercial utilization are shared transparently and fairly in proportion to each party's contribution.
Risk Management and State Procurement Support: Considering the unique nature of scientific and technological work, a risk acceptance procedure has been introduced, and clear rules for risk assessment and performer protection are presented according to relevant regulations. Furthermore, the state can directly order or contract to purchase scientific and technological products and services produced by PPP projects to meet specific public needs.

Increased State Capital Injection and Financial Risk Sharing

One of the most notable aspects of this decree is the significant expansion of state capital injection.

Up to 70% State Capital Injection: State capital can support up to 70% of the total investment in PPP projects, including construction and site clearance compensation costs. Additionally, the state can support part or all of the technology R&D costs regardless of the contributed capital ratio, significantly reducing the initial investment burden on private companies.
State Support for Revenue Shortfalls: If actual revenue falls short of the financial plan for the first three years after project commencement, the state will compensate 100% of the difference. However, if actual revenue falls below 50% of the planned amount even with such support, the PPP contract may be terminated early, project assets returned to the state, and scientific and technological products handled according to the contract. This measure is interpreted as a way to mitigate investment risks for private companies while maintaining project efficiency.

A New Driving Force for Vietnam's Scientific and Technological Development

The Vietnamese government's current measures align with the nation's long-term scientific and technological development goals. In particular, they reflect the will to accelerate digital transformation in line with the Fourth Industrial Revolution and secure self-reliant capabilities in advanced technology fields. By actively utilizing the capital, technological prowess, and innovation capabilities of the private sector, it is expected to enhance the efficiency of national R&D and ultimately contribute to economic growth and social development.

This decree is evaluated as a significant turning point for Vietnam to emerge as a globally competitive nation in science, technology, and innovation, beyond Southeast Asia. Private companies are now in a favorable environment where they can invest more boldly in R&D and pursue innovative projects, backed by strong government support. Attention is now focused on how Vietnam's science, technology, and innovation ecosystem will change and develop in the future.