Driving Innovation: Vietnam’s PPP Framework for Science, Tech, and Digital Transformation

Posted by Written by Vu Nguyen Hanh Reading Time: 5 minutes

The Vietnamese government has issued Decree No. 180/2025/ND-CP (“Decree 180”), establishing a legal framework for public-private partnership (PPPs) in science, technology, and digital transformation. The regulation aims to attract private sector participation in research, innovation, and infrastructure development.

Decree 180 provides an implementation guide for Resolution No. 193/2025/QH15, which initiates special pilot mechanisms and policies to promote breakthroughs in science, technology, innovation, and digital transformation.

The decree seeks to leverage private sector resources in strategic industries through various public-private partnership (PPP) models, providing substantial incentives and transparent guidelines regarding intellectual property (IP) rights, revenue sharing, and data access. It is applicable to central and local government agencies, public service entities, as well as domestic and international organizations and individuals engaged in investment activities, scientific research, technological development, innovation, and digital transformation.

Decree 180 took effect on July 1, 2025, except for certain provisions in Articles 6, 19, and 22 of the decree, which will take effect from October 1, 2025.

See also: Vietnam Passes First-Ever Law on Digital Technology Industry

Key areas of PPP application

Under Decree 180, the following fields are eligible for PPP projects:

  • High and strategic technologies: As defined under the laws on high technology, science, technology, and innovation. This includes infrastructure supporting research, development, and application of such technologies.
  • Digital infrastructure: Development of infrastructure systems to support the digital economy, digital society, and digital government, in line with the Prime Minister’s national digital infrastructure strategies issued for each period.
  • Shared digital platforms: As provided under Article 10 of Resolution No. 193/2025/QH15, which pilots special mechanisms to accelerate science, technology, and digital transformation initiatives.
  • Training of digital human resources:
    • Investment in and operation of online education platforms, digital higher education models, and capacity-building programs to improve digital literacy in society;
    • Investment in construction, renovation, or expansion of universities, research institutes, and training centers focused on strategic technologies, including national-level innovation and research and development (R&D) institutions; and
    • Development and expansion of training programs for digital workforce development, including domestic and international cooperation between education institutions, research centers, innovation hubs, enterprises, and other stakeholders.
  • Other technology-related activities: Covering technologies, products, services, and projects aligned with national goals in scientific research, technology development, innovation, and digital transformation.
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Incentives for PPP projects

Organizations and individuals participating in PPP projects in scientific research, technology development, innovation, and digital transformation are entitled to a range of state incentives and support.

Tax incentives

Enterprises may deduct 200 percent of actual R&D expenses from taxable income when calculating corporate income tax, as provided by the Government and relevant tax laws.

See also: Vietnam Plans Special Policies for Private Sector: Tax Incentives and Barrier Removals

Land and investment incentives

Exemptions and reductions in land use fees and rental payments, along with investment incentives under the laws on land, investment, and related legislation.

Ownership of research outcomes

Recognition of ownership rights over scientific research results, technology development, and innovation outcomes, in line with the law on science, technology, and innovation, as well as Article 6 of the Decree.

Risk acceptance mechanisms

Legal provisions allow recognition of risks in scientific research and innovation activities. Criteria for acceptable risks, evaluation procedures, and protections for project implementers are defined under specialized legislation.

Government procurement

The State may place orders or award contracts for products and goods developed under PPPs to fulfill special tasks in science, technology, and innovation.

Incentives by cooperation model

In addition to the incentives above, organizations and individuals participating in the implementation of investment projects are entitled to respective incentives, depending on different cooperation models.

Cooperation Model

Applicable Incentives and State Support

Investment projects under PPP (Chapter II)
  • State capital contribution of up to 70% of total investment, covering construction, site clearance, resettlement, and temporary works;
  • PPP projects involving scientific research, technology development, and innovation may be commissioned or funded fully/partially from the state budget (independent from the capital contribution);
  • Revenue risk-sharing mechanism: During the first 3 years of operation, the State may cover 100% of the revenue shortfall between actual revenue and projections, if conditions under Article 82 of the PPP Law are met;
  • Early termination provisions: If revenue remains below 50% of projected figures after risk-sharing, contracts may be terminated early, with investors reimbursed for lawful investment, construction, and operating costs. Project assets are transferred to the State, while science and technology outputs are handled per contract terms.

Joint ventures and affiliations using public property (Chapter III)
  • Public scientific and technological organizations and public service providers are exempt from the 2% minimum revenue contribution normally required under the Law on Management and Use of Public Property;
  • This applies where public property is used for joint ventures/affiliations in scientific research, development of strategic technologies, or training cooperation activities.

Other cooperation models (Chapter IV)
  • Eligible for incentives provided under this decree and relevant laws on science, technology, and innovation.

Intellectual property and profit-sharing

Decree 180 provides a framework for managing ownership, IP, and profit sharing in PPP projects in science and technology.

Ownership and use of research assets

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Rights related to assets arising from R&D activities, including software, products, technological platforms, and applications developed from data mining and analysis, are determined by the parties in project contracts or cooperation agreements. Such arrangements must comply with the laws on IP, science, technology, and innovation, as well as other relevant regulations.

Data ownership and IP rights

The decree outlines ownership and IP rights concerning data generated from data mining, analysis, and development in PPP, which shall be determined as follows:

  • State-owned data: Original data created directly by state agencies, or digitized from papers, documents, and other physical sources, is owned by the State unless otherwise agreed between the parties.
  • Derived data: Data generated from mining, analysis, or development is subject to contractual agreements among the parties, in line with applicable laws on data, IP, science, and technology.

Profit-sharing arrangements

Post-tax profits from the commercialization of assets developed under PPP projects are shared among the parties based on their contractual agreement. These agreements must ensure compliance with IP and science laws, fairness, transparency, and proportional distribution according to each party’s financial, technological, and resource contributions.

Special mechanisms for state participation

Decree 180 provides preferential mechanisms for PPP science and technology projects:

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  • State capital contribution: Up to 70 percent of total project investment, covering construction and land clearance costs;
  • Research funding: PPP projects may receive full or partial state funding for R&D activities, separate from the 70 percent capital contribution;
  • Revenue risk-sharing: Within the first three years of operation, the state may cover 100 percent of revenue shortfalls if actual revenue falls below financial projections, subject to legal conditions; and
  • Early termination: If projects remain unviable after risk-sharing mechanisms, contracts may be terminated early, with assets transferred to the state.

Takeaway

Decree 180 creates new opportunities for businesses to partner with the Vietnamese government in science, technology, and digital transformation through public-private partnerships. The framework offers generous incentives while also providing strong risk-sharing mechanisms.

With clear rules on IP, profit-sharing, and flexible cooperation models, the decree lowers barriers for investors and supports innovation-driven projects, making Vietnam an increasingly attractive destination for high-tech and digital sector investment.