Vietnam issues new budget allocation and strategic technology funding regulations

Vietnam has introduced new regulatory frameworks to manage state budget allocations and support strategic technological development. National Assembly Chairman Tran Thanh Man signed Resolution No. 12/2026/UBTVQH16, which establishes the principles, criteria, and norms for allocating regular state budget expenditures for 2027.

The resolution prioritizes funding for essential sectors, including socio-economic development, national defense, security, and disadvantaged regions such as ethnic minority and mountainous areas. It also emphasizes resources for breakthroughs in science, technology, digital transformation, education, and healthcare reform, while aiming to streamline the political apparatus and improve budget efficiency.

Complementing these fiscal guidelines, the Ministry of Science and Technology issued Circular No. 49/2026/TT-BKHCN to establish a specific financial mechanism for strategic technology research and development. This policy allows for management based on work packages and performance milestones rather than traditional methods.

Under this circular, the state may provide up to 100% funding for commissioned tasks involving core or foundational technologies critical to national autonomy and security, as well as high-risk scientific projects. For tasks focused on the commercialization of strategic technology products, state support is capped at 70%, with the remainder provided through counterpart funding from participating organizations or individuals.