VCI Legal – July 8, 2026

On December 10, 2025, during its 10th Session, the 15th National Assembly officially passed the Law on High Technology (Law No. 133/2025/QH15), superseding the 2008 Law on High Technology. This key normative legal act institutionalizes a new state governance model: establishing high technology, and specifically “Strategic Technology,” as a strategic breakthrough to enhance national self-reliance and transform the economic growth model. The Law institutes an integrated system of incentive policies and a Regulatory Sandbox mechanism, creating a synchronized legal corridor for the research, application, and commercialization of advanced scientific achievements.

KEY HIGHLIGHTS

• Codification of “Strategic Technology”: A standout feature of the 2025 Law on High Technology is the inaugural legal codification of “Strategic Technology,” laying the groundwork for the State to concentrate national resources on groundbreaking technologies with broad spillover effects.

• Capital Sovereignty in Strategic Technologies: A mandatory minimum domestic equity ratio of 51% is established for strategic technology enterprises to safeguard economic security and national self-reliance.

• Transparent Quantitative Criteria: Departing from broad, dispersed incentive schemes, the Law establishes transparent, quantitative criteria to classify High Technologies (HT) and Strategic Technologies (ST), focusing strictly on substantive efficacy.

• Controlled Regulatory Sandbox & Risk Acceptance: The Law formalizes a controlled testing environment (Regulatory Sandbox) alongside a risk-acceptance mechanism to unleash creative potential and remove legal and psychological barriers for scientists.

• Statutory Framework for High-Tech Ecosystems & High-Tech Urban Areas: Incorporating statutory provisions governing high-tech ecosystems and high-tech urban developments.

MAIN CONTENTS OF THE 2025 LAW ON HIGH TECHNOLOGY

1. Provisions on Strategic Technology and Core Technology

A prominent novelty of the 2025 Law on High Technology is the introduction of the concept of “Strategic Technology” under Clause 2, Article 3. Strategic Technology refers to breakthrough and high-impact technology identified by the State for targeted investment and development in order to strengthen technological autonomy, foster national competitive advantages, safeguard defense and security, and drive sustainable socio-economic development.

Clause 3, Article 3 stipulates:

“Core technology is foundational technology that determines the formation, development, and mastery of high technologies and strategic technologies, and directly dictates the features, quality, and added value of high-tech and strategic technology products.”

Article 5 establishes rigorous criteria for identifying high technologies prioritized for development as well as strategic technologies:

• For High Technology: Must satisfy the following criteria:

  1. Play a key role in achieving national development goals, raising total factor productivity (TFP), and transforming the growth model while ensuring national defense and security;

  2. Align with national orientations for science, technology, and innovation, as well as Vietnam’s practical conditions;

  3. Possess the potential to be researched, mastered, improved, or localized by domestic organizations/individuals, or serve as a foundational platform to form new manufacturing industries, new value chains, or new services with international competitive potential, or attract investment accompanied by technology transfer, or contribute to socio-economic development in especially disadvantaged areas.

• For Strategic Technology: Must satisfy criteria (1) and (2) of high technology, plus one or more of the following:

  1. Exert a breakthrough impact on socio-economic development;

  2. Create long-term national competitive advantages;

  3. Demonstrate the capacity to form new production methods, new industries, and new value chains;

  4. Have the capacity to be developed from core technology researched and mastered by domestic organizations or individuals to produce strategic technology products.

Article 6 sets forth criteria for high-tech products encouraged for development and strategic technology products:

• High-tech products encouraged for development must satisfy:

  1. Being generated from one or more technologies listed in the List of High Technologies Prioritized for Investment;

  2. Possessing a high added-value ratio in the product structure;

  3. Having export potential or the capacity to substitute imported products.

• Strategic technology products must meet criteria (2) and (3) above, alongside:

  1. Being generated from one or more technologies in the List of Strategic Technologies;

  2. Having a breakthrough impact on socio-economic development or playing a crucial role in national defense and security;

  3. Creating a national competitive advantage.

2. Classification of High-Tech and Strategic Technology Enterprises

The 2025 Law on High Technology institutes a technological enterprise classification system aimed at optimizing the allocation of incentive resources. Article 15 outlines three distinct categories: High-Tech Product Enterprises, High-Tech Enterprises, and Strategic Technology Enterprises.

• High-Tech Product Enterprises must satisfy:

  1. Manufacturing high-tech products or providing high-tech services under this Law that belong to the List of High-Tech Products Encouraged for Development;

  2. Applying environmentally friendly, energy-saving measures, and quality management systems complying with Vietnamese technical standards and regulations (or regional/foreign standards in the absence of Vietnamese standards).

• High-Tech Enterprises must satisfy:

  1. Owning, co-owning, holding legal usage rights, or undergoing technology transfer in accordance with law to develop and apply high technology, and manufacture high-tech products/services;

  2. Meeting criteria on revenue, domestic R&D expenditures, and direct R&D personnel. High-Tech Enterprises are further divided into Group 1 and Group 2:

     • Group 2 High-Tech Enterprises: Required to meet only the general conditions above.

     • Group 1 High-Tech Enterprises: Must meet the general conditions above and at least one of the following: (i) Conduct high-tech / high-tech product R&D activities; (ii) Achieve minimum domestic localization rates prescribed by the Government according to sector/field, while ensuring annual R&D expenditures in Vietnam equal at least 1% of net revenue (after deducting input costs).

Specifically, Clause 6, Article 15 establishes the statutory status of Strategic Technology Enterprises with strict legal requirements on ownership structure:

• Minimum 51% Domestic Equity Requirement: A strategic stipulation aimed at safeguarding national control over vital core technologies, preventing total reliance on foreign capital, and mitigating risks of losing national tech secrets.

• Ownership or co-ownership of strategic technologies or core technologies used in manufacturing strategic technology products in Vietnam.

• Fulfillment of strict metrics regarding revenue, R&D expenditure, localization rate, and direct R&D labor—forcing enterprises to make substantive intellectual investments rather than remaining at low-value processing levels.

3. Innovation Framework, Controlled Testing (Sandbox), and Risk Acceptance

Recognizing the inherent uncertainty and risk in high-tech endeavors, the 2025 Law introduces modern governance mechanisms:

• Regulatory Sandbox (Clause 5, Article 4 & Clause 2, Article 16): The State shall enact and adjust policies allowing real-world testing of new strategic technology products and services.

• Personnel Incentives: Personnel directly engaged in high-tech and strategic technology R&D within these enterprises shall enjoy preferential treatment regarding training, scientific research, labor, housing, entry/exit, residence, work permits, and personal income tax exemptions/reductions under science, technology, innovation, and related laws.

• Incentive Application: Depending on the business model and technology product, enterprises receive the highest level of incentives/support or support under investment, tax, land, and related legislation.

• Risk-Acceptance Mechanism (Clause 4, Article 16): Enterprises specified under Article 15 are entitled to apply risk-acceptance mechanisms under the Law on Science, Technology, and Innovation. Legally, this represents a state commitment to relieve liability if failure occurs outside subjective fault, eliminating psychological bottlenecks in venture capital and cutting-edge research.

4. High-Tech Urban Model

Articles 22 and 23 broaden the scope from traditional “High-Tech Zones” to “High-Tech Urban Areas.” A High-Tech Zone is defined as a concentrated hub connecting scientific research, tech development, innovation, incubation, and commercialization of high and strategic technologies, forming a high-tech ecosystem that enhances national tech capacity and socio-economic growth.

Expanding this modernization, a High-Tech Urban Area is an urban center formed and developed upon a high-tech ecosystem, wherein high-tech zones and scientific/technological organizations play the core role.

In addition to general urban criteria, a High-Tech Urban Area must meet the following conditions:

• Possess a high-tech zone and scientific/technological organizations serving as the development core, seamlessly connected in technical, digital, and social infrastructure with surrounding areas;

• Possess technical, digital, and technological infrastructure dedicated to the R&D and application of high and strategic technologies;

• Possess an innovation ecosystem with the active participation of research institutions, incubators, high-tech enterprises, innovative startups, and technology transfer centers;

• Offer a green, safe, and sustainable living environment with enhanced quality of life via smart service systems, facilitating science, technology, and innovation activities;

• Provide favorable policy mechanisms and legal frameworks for developing, testing, and applying new strategic technologies and advanced urban governance models;

• Ensure close links between educational institutions, research facilities, support organizations, and high-tech enterprises; designate appropriate land ratios prioritized for science, technology, and innovation tied to high-tech zone development.

This model defines urban spaces built around high-tech ecosystems and scientific organizations. The goal is to build green, smart, and safe living environments to attract and retain top experts, ensuring long-term dedication in Vietnam rather than short-term stays.

LEGISLATIVE ASSESSMENT

The most significant provision of the 2025 Law on High Technology is the statutory recognition of “Strategic Technology” tied to “Core Technology,” creating the foundation for the State to concentrate national resources on high-impact sectors and bolster tech autonomy.

From an investment governance perspective, the Law demonstrates sharp legislative acumen by imposing a minimum 51% domestic ownership threshold for strategic technology enterprises, safeguarding economic security and control over critical core technologies.

Objectively, formalizing the Regulatory Sandbox and the “High-Tech Urban Area” model reflects significant legislative effort to build a modern, green, and sustainable innovation ecosystem.

Overall, the 2025 Law on High Technology features high enforceability, clearly delineates the roadmap for technological mastery, and reinforces national independence in the digital era.

STRATEGIC ACTIONABLE SOLUTIONS

• Review Capital Structure & Tech Capacity: Enterprises must proactively adjust capital structures (securing at least 51% domestic ownership) and core technology ownership strategies to qualify as “Strategic Technology Enterprises.”

• Proactively Participate in the Sandbox: Submit proposals for controlled testing of emerging technologies to secure protective legal framing prior to full-scale commercialization.

• Accelerate Tech M&A: Leverage state support policies to execute M&A deals targeting foreign enterprises holding core technologies, enabling reverse engineering and technology mastery.

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