Compiled by Vũ Hoa

A growing wave of public–private partnership (PPP) initiatives in science, technology and digital transformation is opening up significant opportunities for technology enterprises, as Việt Nam strengthens its legal framework and introduces some of the most generous incentives yet for innovation-driven projects.

HCM City’s dynamic start-up ecosystem – ranked among the world’s top 110 and among Southeast Asia’s top five – reflects the country’s rising ambition to promote innovation as a new engine of growth. The momentum has been amplified since the Government issued Decree 180/2025/NĐ-CP in July, creating a dedicated framework for PPPs in science, technology, innovation and digital transformation.

This decree expands cooperation models beyond traditional PPP structures, allowing public assets, joint laboratories, digital platforms and research missions to be implemented through flexible partnerships between the State, businesses and research institutions.

The reforms coincide with broader amendments to the PPP Law in 2024 and 2025, which have widened the scope of PPP investment, streamlined procedures and strengthened risk-sharing mechanisms. Together, they form a coherent legal ecosystem aimed at helping Việt Nam mobilise around US$245 billion for major infrastructure and technology projects through 2030.

One of the most notable changes is the level of State participation. Science and technology PPPs are now eligible for exceptionally high proportions of public capital, ranging from one half to as much as 70 per cent of total investment, making them among the most generously supported PPP sectors in the country.

To accelerate deployment, these projects are also exempt from investment policy approval procedures, allowing investors to move directly to feasibility study preparation, appraisal and contracting. Investors are no longer required to establish separate project companies as long as project revenues and costs are independently recorded.

Risk sharing policies in the early years of operation have also been significantly improved. Tech-related PPP projects are not required to share revenue increases during their first three years. During this same period, if actual revenue falls below the approved financial plan, the State may cover the entire shortfall.

In addition, Decree 180 allows enterprises engaged in PPP projects to count double their actual research and development expenditures as deductible costs when calculating corporate income tax – an unprecedented tax incentive designed to encourage stronger private sector participation in high-tech fields.

These reforms have triggered a surge in interest across ministries and provinces. The Ministry of Finance has received proposals from nearly 10 ministries and over 20 localities, identifying close to 80 potential projects related to digital infrastructure, data platforms, artificial intelligence (AI), smart cities and co-operative innovation models.

Lào Cai and Cần Thơ have already introduced projects on digital education systems, AI-based student assessment, data exchange platforms and smart urban databases. Đà Nẵng is preparing a digital twin initiative for urban management, while major universities such as Hà Nội University of Science and Technology are designing PPP models that link Government, enterprises and research institutions.

According to Phạm Thy Hùng, deputy director of the Public Procurement Agency under the Ministry of Finance, the legal framework for PPPs is now largely complete, spanning laws, decrees and ministerial circulars. The ministry is working directly with provincial authorities and technology enterprises to refine project proposals and identify the most viable options. It is also preparing a detailed handbook guiding PPP procedures in science, technology and innovation, expected to be issued in January 2026.

Despite the favourable environment, many businesses are still awaiting further details on asset valuation, revenue-sharing formulas, output-based indicators for innovation projects and cost norms for new digital services. These clarifications, they say, will be essential for assessing investment opportunities with accuracy and confidence.

Deputy Minister of Finance Trần Quốc Phương emphasised that innovation has been identified as a strategic pillar of Việt Nam’s long-term development under Resolution 57-NQ/TW.

Although still emerging, fields like digital infrastructure, AI and PPPs between Government, enterprises and research institutions hold significant potential to generate breakthrough growth. He noted that Việt Nam aims to continue fostering creative PPP models that reflect global digital economy trends and support the country’s broader transformation goals. — VNS